Japan Income Tax Calculator 2026

Japan's shotokuzei (income tax) uses 7 progressive brackets from 5% to 45%, plus a 2.1% special reconstruction surtax and a flat 10% residence tax (juminzei). This calculator estimates 2026 liability with basic deduction, employment income deduction, and dependent allowance.

National Income Tax
Residence Tax (10%)
Total Annual Tax
Employment income deduction
Basic deduction
Spouse deduction
Dependent deduction
Taxable income
Top marginal bracket
Income tax (before surtax)
Special reconstruction surtax (2.1%)
Total national + residence tax
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Japan's shotokuzei (所得税) is the national income tax administered by the National Tax Agency (NTA). For 2026, residents pay across 7 progressive brackets from 5% to 45%, plus a 2.1% special reconstruction surtax that funds disaster recovery, plus a flat 10% local residence tax (juminzei). Most salaried workers have these withheld monthly and reconciled via year-end adjustment (nenmatsu chosei).

2026 National Income Tax Brackets

The 2026 brackets on taxable income are: 5% up to ¥1.95M; 10% ¥1.95M-¥3.3M (minus ¥97,500 fast deduction); 20% ¥3.3M-¥6.95M (minus ¥427,500); 23% ¥6.95M-¥9M (minus ¥636,000); 33% ¥9M-¥18M (minus ¥1.536M); 40% ¥18M-¥40M (minus ¥2.796M); 45% above ¥40M (minus ¥4.796M). The "fast deduction" lets you compute tax as taxable × rate − deduction without summing bracket-by-bracket.

Key Deductions

Every taxpayer gets a basic deduction of ¥480,000 (zero for income above ¥25M, tapered between). Salaried workers receive an employment income deduction that ranges from ¥550,000 (minimum) to ¥1.95M (capped at incomes above ¥8.5M). Spouse deduction is ¥380,000 if spouse income is at or below ¥1.03M. Dependent deduction is ¥380,000 per qualifying dependent (more for college-age and senior dependents). Other deductions include social insurance premiums, life insurance, earthquake insurance, medical expenses, and home loans.

Residence Tax (Juminzei)

The local residence tax is a flat 10% of last year's taxable income — 6% prefectural plus 4% municipal — plus a small per-capita amount (~¥5,000/year). Unlike national tax, juminzei is paid in arrears based on January 1st residency. Special reconstruction surtax of 2.1% is applied to the national income tax (not on income directly), so the effective top combined rate is approximately 55.945% on the highest bracket.

Common Japan Tax Mistakes

(1) Forgetting residence tax in year of arrival — new residents owe no juminzei in their first calendar year (no prior-year base). (2) Spouse income limit — the ¥1.03M / ¥1.50M boundaries trigger different deductions and the "1.03M wall" affects part-time spouse work. (3) Furusato Nozei — hometown tax donations are deductible up to a personalized cap and can return municipal gifts; calculate the cap before donating. (4) Missing year-end adjustment forms — life insurance, mortgage, and dependent declarations must be submitted to payroll by mid-December.

Last updated May 2026. Source: National Tax Agency Japan (nta.go.jp).