Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
717,513 円
Income Tax
- 89,734 円
National Surtax
- 1,884 円
Health Insurance
- 35,302 円
Pension
- 59,475 円
Unemployment insurance
- 2,153 円
Total tax
- 188,548 円
Net pay
* 528,965 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
528,965 円
Net pay
99,189 円
Tax the employer pays
188,548 円
Tax you pay
Total tax paid
287,737 円
Did you know your employer also pays tax on your salary? It costs the employer 99,189 円 to pay you 717,513 円. In other words, every time you spend 10 円 of your hard-earned money, 4.01 円 goes to the government.
Real tax rate
35.2%
So, with you and the employer both paying tax, what used to be a 26.3% tax rate now rises to 35.2%, meaning your real tax rate is actually 8.9% higher than what it seemed at first.
Summary
If you make 8,610,156 円 a year living in Japan, you will be taxed 2,262,575 円. That means that your net pay will be 6,347,581 円 per year, or 528,965 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 6718796
22.0%
1
Canada
JPY 6113993
29.0%
2
Latin America
Country 
Net pay
Average tax
Rank
Guatemala
JPY 7740145
10.1%
1
Chile
JPY 7148842
17.0%
2
Costa Rica
JPY 7088203
17.7%
3
Puerto Rico
JPY 6999885
18.7%
4
Panama
JPY 6757575
21.5%
5
Ecuador
JPY 6698365
22.2%
6
Colombia
JPY 6430546
25.3%
7
Peru
JPY 6393722
25.7%
8
Brazil
JPY 6328727
26.5%
9
Mexico
JPY 6198192
28.0%
10
Uruguay
JPY 5885793
31.6%
11
Argentina
JPY 5595531
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.