Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
696,561 円
Income Tax
- 85,167 円
National Surtax
- 1,789 円
Health Insurance
- 34,271 円
Pension
- 59,475 円
Unemployment insurance
- 2,090 円
Total tax
- 182,791 円
Net pay
* 513,770 円
Marginal tax rate
27.5%
Average tax rate
26.2%
73.8%
Net pay
26.2%
Total tax
Total tax
Net pay
The Taxberg
513,770 円
Net pay
98,030 円
Tax the employer pays
182,791 円
Tax you pay
Total tax paid
280,821 円
Did you know your employer also pays tax on your salary? It costs the employer 98,030 円 to pay you 696,561 円. In other words, every time you spend 10 円 of your hard-earned money, 4.03 円 goes to the government.
Real tax rate
35.3%
So, with you and the employer both paying tax, what used to be a 26.2% tax rate now rises to 35.3%, meaning your real tax rate is actually 9.1% higher than what it seemed at first.
Summary
If you make 8,358,732 円 a year living in Japan, you will be taxed 2,193,490 円. That means that your net pay will be 6,165,242 円 per year, or 513,770 円 per month. Your average tax rate is 26.2% and your marginal tax rate is 27.5%. 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 27.47 円, hence, your net pay will only increase by 72.53 円.
Bonus Example
A 1,000 円 bonus will generate an extra 725 円 of net incomes. A 5,000 円 bonus will generate an extra 3,627 円 of net incomes.
Compare average tax
North America
Country 
Net pay
Average tax
Rank
USA
JPY 6546849
21.7%
1
Canada
JPY 5939219
29.0%
2
Latin America
Country 
Net pay
Average tax
Rank
Guatemala
JPY 7517614
10.1%
1
Chile
JPY 6931360
17.1%
2
Costa Rica
JPY 6898504
17.5%
3
Puerto Rico
JPY 6830552
18.3%
4
Panama
JPY 6577304
21.3%
5
Ecuador
JPY 6517810
22.0%
6
Colombia
JPY 6275848
24.9%
7
Peru
JPY 6217725
25.6%
8
Brazil
JPY 6146444
26.5%
9
Mexico
JPY 6034200
27.8%
10
Uruguay
JPY 5635485
32.6%
11
Argentina
JPY 5432105
35.0%
12
Show more
Middle East
Country 
Net pay
Average tax
Rank
United Arab Emirates
JPY 7940795
5.0%
1
Qatar
JPY 7940795
5.0%
2
Bahrain
JPY 7690035
8.0%
3
Oman
JPY 7690034
8.0%
4
Saudi Arabia
JPY 7522859
10.0%
5
Kuwait
JPY 7439269
11.0%
6
Israel
JPY 6463776
22.7%
7
Egypt
JPY 6311534
24.5%
8
Lebanon
JPY 6298144
24.7%
9
Turkey
JPY 4897673
41.4%
10
Show more
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.