Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
8,689,460 円
Income Tax
- 1,094,099 円
National Surtax
- 22,976 円
Health Insurance
- 427,521 円
Pension
- 713,700 円
Unemployment insurance
- 26,068 円
Total tax
- 2,284,365 円
Net pay
* 6,405,095 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
6,405,095 円
Net pay
1,194,662 円
Tax the employer pays
2,284,365 円
Tax you pay
Total tax paid
3,479,027 円
Did you know your employer also pays tax on your salary? It costs the employer 1,194,662 円 to pay you 8,689,460 円. In other words, every time you spend 10 円 of your hard-earned money, 4 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 8,689,460 円 a year living in Japan, you will be taxed 2,284,365 円. That means that your net pay will be 6,405,095 円 per year, or 533,758 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 27.47 円, hence, your net pay will only increase by 72.53 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 3,627 円 of net incomes.
Compare average tax
North America
Country 
Net pay
Average tax
Rank
USA
JPY 6769543
22.1%
1
Canada
JPY 6169120
29.0%
2
Latin America
Country 
Net pay
Average tax
Rank
Guatemala
JPY 7810335
10.1%
1
Chile
JPY 7216801
17.0%
2
Costa Rica
JPY 7147582
17.7%
3
Puerto Rico
JPY 7053296
18.8%
4
Panama
JPY 6812177
21.6%
5
Ecuador
JPY 6758011
22.2%
6
Colombia
JPY 6479253
25.4%
7
Peru
JPY 6449235
25.8%
8
Brazil
JPY 6386222
26.5%
9
Mexico
JPY 6249918
28.1%
10
Uruguay
JPY 6007813
30.9%
11
Argentina
JPY 5647078
35.0%
12
Show more
Middle East
Country 
Net pay
Average tax
Rank
United Arab Emirates
JPY 8254987
5.0%
1
Qatar
JPY 8254987
5.0%
2
Bahrain
JPY 7994302
8.0%
3
Oman
JPY 7994304
8.0%
4
Saudi Arabia
JPY 7820514
10.0%
5
Kuwait
JPY 7733621
11.0%
6
Israel
JPY 6664595
23.3%
7
Egypt
JPY 6559580
24.5%
8
Lebanon
JPY 6546190
24.7%
9
Turkey
JPY 5090292
41.4%
10
Show more
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.