Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
663,850 円
Income Tax
- 78,439 円
National Surtax
- 1,647 円
Health Insurance
- 32,661 円
Pension
- 59,475 円
Unemployment insurance
- 1,992 円
Total tax
- 174,214 円
Net pay
* 489,636 円
Marginal tax rate
25.7%
Average tax rate
26.2%
73.8%
Net pay
26.2%
Total tax
Total tax
Net pay
The Taxberg
489,636 円
Net pay
96,219 円
Tax the employer pays
174,214 円
Tax you pay
Total tax paid
270,433 円
Did you know your employer also pays tax on your salary? It costs the employer 96,219 円 to pay you 663,850 円. In other words, every time you spend 10 円 of your hard-earned money, 4.07 円 goes to the government.
Real tax rate
35.6%
So, with you and the employer both paying tax, what used to be a 26.2% tax rate now rises to 35.6%, meaning your real tax rate is actually 9.4% higher than what it seemed at first.
Summary
If you make 7,966,200 円 a year living in Japan, you will be taxed 2,090,572 円. That means that your net pay will be 5,875,628 円 per year, or 489,636 円 per month. Your average tax rate is 26.2% and your marginal tax rate is 25.7%. This marginal tax rate means that your immediate additional income will be taxed at this rate. For instance, an increase of 100 円 in your salary will be taxed 25.74 円, hence, your net pay will only increase by 74.26 円.
Bonus Example
A 1,000 円 bonus will generate an extra 743 円 of net incomes. A 5,000 円 bonus will generate an extra 3,713 円 of net incomes.
Compare average tax
North America
Country 
Net pay
Average tax
Rank
USA
JPY 6258578
21.4%
1
Canada
JPY 5673116
28.8%
2
Latin America
Country 
Net pay
Average tax
Rank
Guatemala
JPY 7170192
10.0%
1
Costa Rica
JPY 6599885
17.2%
2
Chile
JPY 6591820
17.3%
3
Puerto Rico
JPY 6566180
17.6%
4
Panama
JPY 6280353
21.2%
5
Ecuador
JPY 6251232
21.5%
6
Colombia
JPY 6032898
24.3%
7
Peru
JPY 5942953
25.4%
8
Brazil
JPY 5861859
26.4%
9
Mexico
JPY 5778171
27.5%
10
Uruguay
JPY 5397123
32.3%
11
Argentina
JPY 5176959
35.0%
12
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NOTE* Withholding is calculated based on the tables of Japan, income tax. For simplification purposes some variables (such as marital status and others) have been assumed. This document does not represent legal authority and shall be used for approximation purposes only.