Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
15,860 円
Income Tax
- 1,072 円
National Surtax
- 22.52 円
Health Insurance
- 780 円
Pension
- 1,451 円
Unemployment insurance
- 47.58 円
Total tax
- 3,374 円
Net pay
* 12,486 円
Marginal tax rate
28.9%
Average tax rate
21.3%
78.7%
Net pay
21.3%
Total tax
Total tax
Net pay
The Taxberg
12,486 円
Net pay
2,329 円
Tax the employer pays
3,374 円
Tax you pay
Total tax paid
5,703 円
Did you know your employer also pays tax on your salary? It costs the employer 2,329 円 to pay you 15,860 円. In other words, every time you spend 10 円 of your hard-earned money, 3.60 円 goes to the government.
Real tax rate
31.4%
So, with you and the employer both paying tax, what used to be a 21.3% tax rate now rises to 31.4%, meaning your real tax rate is actually 10.1% higher than what it seemed at first.
Summary
If you make 4,123,600 円 a year living in Japan, you will be taxed 877,223 円. That means that your net pay will be 3,246,377 円 per year, or 270,531 円 per month. Your average tax rate is 21.3% and your marginal tax rate is 28.9%. 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 28.90 円, hence, your net pay will only increase by 71.10 円.
Bonus Example
A 1,000 円 bonus will generate an extra 711 円 of net incomes. A 5,000 円 bonus will generate an extra 3,555 円 of net incomes.
Compare average tax
North America
Country 
Net pay
Average tax
Rank
USA
JPY 3416912
17.1%
1
Canada
JPY 3054803
25.9%
2
Latin America
Country 
Net pay
Average tax
Rank
Guatemala
JPY 3728209
9.6%
1
Puerto Rico
JPY 3644484
11.6%
2
Costa Rica
JPY 3632735
11.9%
3
Ecuador
JPY 3527581
14.5%
4
Colombia
JPY 3402246
17.5%
5
Panama
JPY 3373427
18.2%
6
Chile
JPY 3319045
19.5%
7
Mexico
JPY 3204677
22.3%
8
Peru
JPY 3159411
23.4%
9
Brazil
JPY 3075974
25.4%
10
Uruguay
JPY 2983311
27.7%
11
Argentina
JPY 2679269
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.