Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
987,340 円
Income Tax
- 161,188 円
National Surtax
- 3,385 円
Health Insurance
- 48,577 円
Pension
- 59,475 円
Unemployment insurance
- 2,962 円
Total tax
- 275,587 円
Net pay
* 711,753 円
Marginal tax rate
37.1%
Average tax rate
27.9%
72.1%
Net pay
27.9%
Total tax
Total tax
Net pay
The Taxberg
711,753 円
Net pay
114,124 円
Tax the employer pays
275,587 円
Tax you pay
Total tax paid
389,711 円
Did you know your employer also pays tax on your salary? It costs the employer 114,124 円 to pay you 987,340 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 11,848,080 円 a year living in Japan, you will be taxed 3,307,039 円. That means that your net pay will be 8,541,041 円 per year, or 711,753 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 8790712
25.8%
1
Canada
JPY 8188325
30.9%
2
Latin America
Country 
Net pay
Average tax
Rank
Guatemala
JPY 10605970
10.5%
1
Chile
JPY 9579580
19.2%
2
Costa Rica
JPY 9425404
20.5%
3
Puerto Rico
JPY 9034130
23.8%
4
Panama
JPY 8931981
24.6%
5
Ecuador
JPY 8764422
26.0%
6
Brazil
JPY 8676222
26.8%
7
Colombia
JPY 8658126
26.9%
8
Uruguay
JPY 8600617
27.4%
9
Peru
JPY 8469593
28.5%
10
Mexico
JPY 8269458
30.2%
11
Argentina
JPY 7700181
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.