Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
905,455 円
Income Tax
- 135,576 円
National Surtax
- 2,847 円
Health Insurance
- 44,548 円
Pension
- 59,475 円
Unemployment insurance
- 2,716 円
Total tax
- 245,163 円
Net pay
* 660,292 円
Marginal tax rate
37.1%
Average tax rate
27.1%
72.9%
Net pay
27.1%
Total tax
Total tax
Net pay
The Taxberg
660,292 円
Net pay
109,592 円
Tax the employer pays
245,163 円
Tax you pay
Total tax paid
354,755 円
Did you know your employer also pays tax on your salary? It costs the employer 109,592 円 to pay you 905,455 円. In other words, every time you spend 10 円 of your hard-earned money, 3.92 円 goes to the government.
Real tax rate
34.9%
So, with you and the employer both paying tax, what used to be a 27.1% tax rate now rises to 34.9%, meaning your real tax rate is actually 7.8% higher than what it seemed at first.
Summary
If you make 10,865,460 円 a year living in Japan, you will be taxed 2,941,955 円. That means that your net pay will be 7,923,505 円 per year, or 660,292 円 per month. Your average tax rate is 27.1% and your marginal tax rate is 37.2%. 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 37.15 円, hence, your net pay will only increase by 62.85 円.
Bonus Example
A 1,000 円 bonus will generate an extra 629 円 of net incomes. A 5,000 円 bonus will generate an extra 3,143 円 of net incomes.
Compare average tax
Asia / Pacific
Country 
Net pay
Average tax
Rank
Hong Kong
JPY 9523472
12.4%
1
Taiwan
JPY 9135927
15.9%
2
Kazakhstan
JPY 8760766
19.4%
3
Singapore
JPY 8631424
20.6%
4
Thailand
JPY 8618629
20.7%
5
South Korea
JPY 8435239
22.4%
6
Australia
JPY 8078112
25.7%
7
New Zealand
JPY 7960878
26.7%
8
China
JPY 7947687
26.9%
9
Japan
JPY 7923505
27.1%
10
Indonesia
JPY 7917004
27.1%
11
Pakistan
JPY 7750469
28.7%
12
Malaysia
JPY 7612481
29.9%
13
Philippines
JPY 7542448
30.6%
14
Vietnam
JPY 7315087
32.7%
15
India
JPY 6224275
42.7%
16
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Latin America
Country 
Net pay
Average tax
Rank
Guatemala
JPY 9736271
10.4%
1
Chile
JPY 8888596
18.2%
2
Costa Rica
JPY 8721848
19.7%
3
Puerto Rico
JPY 8450945
22.2%
4
Panama
JPY 8276083
23.8%
5
Ecuador
JPY 8186077
24.7%
6
Brazil
JPY 7963822
26.7%
7
Colombia
JPY 7918851
27.1%
8
Uruguay
JPY 7901237
27.3%
9
Peru
JPY 7867738
27.6%
10
Mexico
JPY 7647696
29.6%
11
Argentina
JPY 7061478
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.