Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
701,808 円
Income Tax
- 86,311 円
National Surtax
- 1,813 円
Health Insurance
- 34,529 円
Pension
- 59,475 円
Unemployment insurance
- 2,105 円
Total tax
- 184,233 円
Net pay
* 517,575 円
Marginal tax rate
27.5%
Average tax rate
26.3%
73.7%
Net pay
26.3%
Total tax
Total tax
Net pay
The Taxberg
517,575 円
Net pay
98,320 円
Tax the employer pays
184,233 円
Tax you pay
Total tax paid
282,553 円
Did you know your employer also pays tax on your salary? It costs the employer 98,320 円 to pay you 701,808 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 26.3% tax rate now rises to 35.3%, meaning your real tax rate is actually 9% higher than what it seemed at first.
Summary
If you make 8,421,696 円 a year living in Japan, you will be taxed 2,210,791 円. That means that your net pay will be 6,210,905 円 per year, or 517,575 円 per month. Your average tax rate is 26.3% 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 27.48 円, hence, your net pay will only increase by 72.52 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 3,626 円 of net incomes.
Compare average tax
North America
Country 
Net pay
Average tax
Rank
USA
JPY 6593089
21.7%
1
Canada
JPY 5982988
29.0%
2
Latin America
Country 
Net pay
Average tax
Rank
Guatemala
JPY 7573342
10.1%
1
Chile
JPY 6985824
17.1%
2
Costa Rica
JPY 6946404
17.5%
3
Puerto Rico
JPY 6872957
18.4%
4
Panama
JPY 6624937
21.3%
5
Ecuador
JPY 6560569
22.1%
6
Colombia
JPY 6314794
25.0%
7
Peru
JPY 6261800
25.7%
8
Brazil
JPY 6192093
26.5%
9
Mexico
JPY 6075269
27.9%
10
Uruguay
JPY 5673719
32.6%
11
Argentina
JPY 5473032
35.0%
12
Show more
Africa
Country 
Net pay
Average tax
Rank
Angola
JPY 6153425
26.9%
1
Kenya
JPY 5973094
29.1%
2
South Africa
JPY 5907763
29.9%
3
Mozambique
JPY 5814147
31.0%
4
Nigeria
JPY 5747548
31.8%
5
Ghana
JPY 5724318
32.0%
6
Ivory Coast
JPY 5563085
33.9%
7
Morocco
JPY 5450896
35.3%
8
Cameroon
JPY 5317049
36.9%
9
Senegal
JPY 5228899
37.9%
10
Zambia
JPY 5224242
38.0%
11
Uganda
JPY 5181276
38.5%
12
Show more
Middle East
Country 
Net pay
Average tax
Rank
United Arab Emirates
JPY 8000611
5.0%
1
Qatar
JPY 8000611
5.0%
2
Bahrain
JPY 7747958
8.0%
3
Oman
JPY 7747961
8.0%
4
Saudi Arabia
JPY 7579526
10.0%
5
Kuwait
JPY 7495310
11.0%
6
Israel
JPY 6502008
22.8%
7
Egypt
JPY 6358757
24.5%
8
Lebanon
JPY 6345367
24.7%
9
Turkey
JPY 4934343
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.