Income tax in Japan (2026)

In 2026, income tax in Japan runs from 5% to 55.9%. On a ¥8,000,000 salary you take home ¥5,955,700 a year, ¥496,308 a month.

Income tax rates

Top rate
55.9%
Lowest rate
5%
Tax-free allowance
None
VAT
10%
Capital gains
20.32%
The 2026 bands, in Japanese Yen
Income-tax bands of Japan, 2026, in Japanese Yen
Taxable income (after allowance)Rate
¥0 to ¥1,950,0005%
¥1,950,000 to ¥3,300,00010%
¥3,300,000 to ¥6,950,00020%
¥6,950,000 to ¥9,000,00023%
¥9,000,000 to ¥18,000,00033%
¥18,000,000 to ¥40,000,00040%
over ¥40,000,00045%

These are the national bands. The top rate of 55.9% also counts surcharges and regional or local income taxes.

Take-home pay by salary

Compare with other countries

Cost of living in Japan

Frequently asked questions

What are the income tax rates in Japan?

Income tax in Japan runs from 5% to 55.9%, in 7 bands.

Is there a tax-free allowance in Japan?

No — Japan has no general tax-free allowance.

What is the take-home pay on ¥8,000,000 in Japan?

On ¥8,000,000 in Japan you take home ¥5,955,700 a year — ¥496,308 a month.

2026 rules checked against nta.go.jp. Single person, employee, no other income. Not tax advice. Change the details

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