Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
678,124 円
Income Tax
- 81,308 円
National Surtax
- 1,707 円
Health Insurance
- 33,364 円
Pension
- 59,475 円
Unemployment insurance
- 2,034 円
Total tax
- 177,888 円
Net pay
* 500,236 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
500,236 円
Net pay
97,009 円
Tax the employer pays
177,888 円
Tax you pay
Total tax paid
274,897 円
Did you know your employer also pays tax on your salary? It costs the employer 97,009 円 to pay you 678,124 円. In other words, every time you spend 10 円 of your hard-earned money, 4.05 円 goes to the government.
Real tax rate
35.5%
So, with you and the employer both paying tax, what used to be a 26.2% tax rate now rises to 35.5%, meaning your real tax rate is actually 9.3% higher than what it seemed at first.
Summary
If you make 8,137,488 円 a year living in Japan, you will be taxed 2,134,657 円. That means that your net pay will be 6,002,831 円 per year, or 500,236 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 6384370
21.5%
1
Canada
JPY 5788478
28.9%
2
Middle East
Country 
Net pay
Average tax
Rank
United Arab Emirates
JPY 7730614
5.0%
1
Qatar
JPY 7730614
5.0%
2
Bahrain
JPY 7486488
8.0%
3
Oman
JPY 7486487
8.0%
4
Saudi Arabia
JPY 7323739
10.0%
5
Kuwait
JPY 7242363
11.0%
6
Israel
JPY 6325458
22.3%
7
Egypt
JPY 6145601
24.5%
8
Lebanon
JPY 6132211
24.6%
9
Turkey
JPY 4768818
41.4%
10
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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.