Japan Income Tax for Foreigners: Complete Guide 2026

Japan Income Tax for Expats: What You Actually Need to Know

Japan's tax system is rarely covered in expat relocation guides, yet it directly affects your take-home pay from day one. This guide covers who is taxable, what rates apply, and how to file.

Who pays income tax in Japan?

Your tax status depends on how long you have lived in Japan.

Non-permanent resident (less than 5 years in Japan during the past 10)

You are taxed only on income sourced in Japan, plus any foreign income remitted to Japan. Foreign income left abroad is not taxed. This is the status of the large majority of foreign employees in Japan during their first years.

Permanent resident (more than 5 years in Japan during the past 10)

You are taxed on your worldwide income, regardless of where it is paid or held.

Non-resident

You are not based in Japan continuously. Taxed only on Japan-sourced income.

Japan's 2026 income tax brackets

Japan's national income tax is progressive. On top of this, local residential tax (juminzei, 住民税) adds a flat 10% billed the following year.

At a salary of ¥6,000,000/year (approximately $40,000 or €36,000), the combined effective rate (national + local) is typically 22 to 25%.

When and how to file your taxes

The tax return filing period (kakutei shinkoku, 確定申告) runs from 16 February to 15 March each year, covering income from the previous calendar year.

If your Japanese employer withholds tax at source (gensen choshū), you may not need to file a full return. Your employer issues a withholding tax certificate (源泉徴収票) in December or January. Check with your HR team.

You must file if you have supplementary income: freelance earnings, overseas rental income, investment returns from non-Japanese accounts, or income from multiple employers.

Online via MyPortal (mynaportal.go.jp): electronic filing available since 2021. Requires a My Number card with chip. Some local tax offices offer bilingual appointment slots from mid-February to mid-March.

In person: your local tax office (zeimusho, 税務署) accepts paper returns. Several Tokyo wards have foreigner-friendly counters, sometimes with English-speaking staff.

The juminzei: local residential tax

Juminzei (住民税) is the local tax levied by your municipality and prefecture at a flat 10% of taxable income (6% municipal + 4% prefectural).

It is calculated on your year N income and billed in June of year N+1. This creates a cash-flow gap in your first year: you pay juminzei for year 1 during your second year in Japan.

Key deductions available to expats

• Social insurance premiums (shakai hoken contributions paid by employees): fully deductible.
• Medical expenses exceeding ¥100,000 per year: deductible above this threshold.
• Donations to approved organisations (including furusato nozei).
• Home loan interest for property purchased in Japan.
• Basic deduction: ¥480,000 for most taxpayers.

Bilateral tax treaties

Japan has bilateral tax treaties with France, the US, the UK, and most OECD countries that prevent double taxation. If you have paid income tax in Japan, your home country typically grants a credit against any domestic liability on the same income.

Important: even if you owe no tax at home, you may still be required to report your situation (FBAR for US citizens holding foreign accounts, for example). Check with your home-country tax authority.

FAQ

Does my Japanese employer handle everything?

Mostly yes, for full-time employees on a standard Japanese contract. Verify with HR whether a supplementary return is required for overseas income.

What happens if I leave Japan mid-year?

You must file a final return before leaving, or appoint a tax representative (zeirishi). Your employer may complete a year-end adjustment for salary income.

For a complete relocation checklist, see our guide on [moving to Tokyo step by step](/blog/moving-to-tokyo-checklist-2026). For healthcare contributions, read our guide to [Japan's health insurance for expats](/blog/japan-health-insurance-expat-guide).