Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
985,010 円
Income Tax
- 160,459 円
National Surtax
- 3,370 円
Health Insurance
- 48,462 円
Pension
- 59,475 円
Unemployment insurance
- 2,955 円
Total tax
- 274,721 円
Net pay
* 710,289 円
Marginal tax rate
37.2%
Average tax rate
27.9%
72.1%
Net pay
27.9%
Total tax
Total tax
Net pay
The Taxberg
710,289 円
Net pay
113,995 円
Tax the employer pays
274,721 円
Tax you pay
Total tax paid
388,716 円
Did you know your employer also pays tax on your salary? It costs the employer 113,995 円 to pay you 985,010 円. In other words, every time you spend 10 円 of your hard-earned money, 3.95 円 goes to the government.
Real tax rate
35.4%
So, with you and the employer both paying tax, what used to be a 27.9% tax rate now rises to 35.4%, meaning your real tax rate is actually 7.5% higher than what it seemed at first.
Summary
If you make 11,820,120 円 a year living in Japan, you will be taxed 3,296,651 円. That means that your net pay will be 8,523,469 円 per year, or 710,289 円 per month. Your average tax rate is 27.9% 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
North America
Country 
Net pay
Average tax
Rank
USA
JPY 8772821
25.8%
1
Canada
JPY 8172444
30.9%
2
Asia / Pacific
Country 
Net pay
Average tax
Rank
Hong Kong
JPY 10315840
12.7%
1
Taiwan
JPY 9882487
16.4%
2
Kazakhstan
JPY 9592126
18.9%
3
Singapore
JPY 9476298
19.8%
4
Thailand
JPY 9286891
21.4%
5
South Korea
JPY 9098703
23.0%
6
Australia
JPY 8703414
26.4%
7
China
JPY 8615949
27.1%
8
New Zealand
JPY 8587230
27.4%
9
Indonesia
JPY 8562355
27.6%
10
Japan
JPY 8523469
27.9%
11
Pakistan
JPY 8370998
29.2%
12
Malaysia
JPY 8228135
30.4%
13
Philippines
JPY 8166159
30.9%
14
Vietnam
JPY 7935616
32.9%
15
India
JPY 6736737
43.0%
16
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Latin America
Country 
Net pay
Average tax
Rank
Guatemala
JPY 10581223
10.5%
1
Chile
JPY 9560120
19.1%
2
Costa Rica
JPY 9405385
20.4%
3
Puerto Rico
JPY 9017536
23.7%
4
Panama
JPY 8913318
24.6%
5
Ecuador
JPY 8747966
26.0%
6
Brazil
JPY 8655951
26.8%
7
Colombia
JPY 8637090
26.9%
8
Uruguay
JPY 8580716
27.4%
9
Peru
JPY 8452467
28.5%
10
Mexico
JPY 8251280
30.2%
11
Argentina
JPY 7682007
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.