2026 TAX GUIDE
Japan income tax rates: 5% to 45%
Japan uses progressive rates from 5% to 45% by taxable-income band.
Direct answer
Is the income-tax rate applied to gross salary?
Income tax is taxable income times the band rate minus the quick deduction, plus reconstruction tax.
The 5%–45% scale is progressive
The top marginal rate is not multiplied by all taxable income. Each band adds progressively; the quick table reaches the same result with taxable income × rate − deduction.
Use taxable income, not gross salary
Employment-income, insurance, basic, and other deductions are applied before the amount enters the rate table.
Add reconstruction special income tax
Reconstruction tax is added to the calculated income tax. Payroll withholding may differ from final liability and can be reconciled at year-end or by return.
Income-tax quick-calculation table
| Taxable income | Rate | Quick deduction |
|---|---|---|
| Up to JPY 1.95m | 5% | JPY 0 |
| Over JPY 1.95m–3.3m | 10% | JPY 97,500 |
| Over JPY 3.3m–6.95m | 20% | JPY 427,500 |
| Over JPY 6.95m–9m | 23% | JPY 636,000 |
| Over JPY 9m–18m | 33% | JPY 1,536,000 |
| Over JPY 18m–40m | 40% | JPY 2,796,000 |
| Over JPY 40m | 45% | JPY 4,796,000 |
Worked examples
- At JPY 5m salary, the rate applies to taxable income after deductions, not to the whole salary.
- Under the standard conditions, JPY 8m salary produces taxable income below JPY 6.95m, so the 20% band is the working reference.
- At JPY 10m salary, do not apply 33% to the entire salary; use the quick formula on taxable income.
Official source and check date
Rules checked: 31 August 2026 · Calculator logic updated: 4 September 2026 · Page updated: 4 September 2026
National Tax Agency: 2026 income-tax reformFrequently asked questions
How does this affect take-home pay?
The calculator applies the same 2026 engine to taxes and employee insurance.
Is annual income enough for an exact answer?
No. Age, dependents, prefecture, bonuses, and standard remuneration also matter.
Where can I verify the figures?
Inline links point to the NTA, MHLW, Japan Pension Service, and other official sources.
What if rules change?
The update history records the effective date and rule version.
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