Country topic
Tax in Japan
The National Tax Agency's guide says a resident is anyone with a domicile or a residence in Japan continuously for one year or more. Among residents, someone of non-Japanese nationality who has had a domicile or residence in Japan for five years or less in the preceding ten years is a non-permanent resident. Anyone else is a non-resident. [T1] Residents other than non-permanent residents are taxed on their whole income. Non-permanent residents are taxed on income other than foreign-source income, on foreign-source income paid in Japan, and on foreign-source income paid abroad and remitted to Japan. Non-residents are taxed on Japan-source income only. [T1]
What we found
The research, with its sources.
Research information, not advice. Rules change, so check the source before you act on one.
- The National Tax Agency's guide says a resident is anyone with a domicile or a residence in Japan continuously for one year or more. Among residents, someone of non-Japanese nationality who has had a domicile or residence in Japan for five years or less in the preceding ten years is a non-permanent resident. Anyone else is a non-resident. [T1]
- Residents other than non-permanent residents are taxed on their whole income. Non-permanent residents are taxed on income other than foreign-source income, on foreign-source income paid in Japan, and on foreign-source income paid abroad and remitted to Japan. Non-residents are taxed on Japan-source income only. [T1]
- National income tax has seven brackets from 5% to 45% (laws as of 1 April 2026): 5% on taxable income up to ¥1,949,000, 10% to ¥3,299,000, 20% to ¥6,949,000, 23% to ¥8,999,000, 33% to ¥17,999,000, 40% to ¥39,999,000 and 45% from ¥40,000,000. [T2]
- A special income tax for reconstruction of 2.1% of the income tax amount is added for each year from 2013 through 2037. The Agency's rates page says that from 1 January 2027 the reconstruction rate falls to 1.1% and a defence special income tax of 1% of withheld income tax is withheld alongside. [T1] [T2]
- Income tax runs on a calendar year with self-assessment: you file a final return between 16 February and 15 March of the following year. Salary earners with salary of ¥20 million or less from a single withholding payer and other income of ¥200,000 or less may not need to file. [T3]
- Individual inhabitant taxes are paid to the prefecture and municipality where you are registered on 1 January, with an income-graded part based on the previous year's income and a flat-rate part. Employers can withhold it from salary. You owe it even if you leave after 1 January. The rate is not read here. [T4]
- Consumption tax is 10% on goods and services, with 8% on food and drink excluding alcohol and dining out. [T4]
- Australia's Treasury lists a Japan agreement signed on 31 January 2008 and in force from 3 December 2008. Canada lists a convention signed on 7 May 1986, amended by a protocol signed on 19 February 1999, in force from 14 December 2000. Japan's Ministry of Finance lists the United States convention signed 6 November 2003 and in force 30 March 2004, with an amending protocol signed 24 January 2013 and in force 30 August 2019; Canada's convention in force 14 November 1987 and its protocol in force 13 December 2000 (a day earlier than Canada's date); and New Zealand's convention signed 10 December 2012 and in force 25 October 2013. The IRS and New Zealand's Inland Revenue both list Japan; we did not read the treaty texts. [T5] [T6] [T7] [T8] [T9]
- The guidebook says registered residents aged 20 to 59 are obliged to join the public pension system. The Japan Pension Service lists social security agreements with 24 countries, including the United States, Canada and Australia; New Zealand is not on the list. Whether a six-month visitor needs a certificate of coverage was not checked. [T4] [T10]
- The Agency's Q&A on the digital nomad status (as of July 2024) says pay for activities carried out in Japan can be exempt from Japanese tax if it meets the tax convention's requirements, which in most cases include staying 183 days or less in the taxable year or any consecutive 12-month period (requirements vary by convention). It is not exempt if the days exceed 183, if a Japanese-resident employer pays the salary, or if your country has no convention with Japan. [T11]
- The National Tax Agency's guide says someone whose occupation normally requires living in Japan continuously for one year or more is presumed to have a domicile, except where it is clear by contract that the stay is under one year. It also says salaries and other pay for personal services performed in Japan are treated as domestic-source income even if they are not paid in Japan. [T12]
The country
More on Japan.
Topics
More about Japan.
Questions about Tax in Japan.
How long before I become a tax resident of Japan?
Japan's income tax guide classes you as a resident if you have a domicile or residence continuously for one year or more. A resident of non-Japanese nationality who has been resident for five years or less in the past ten is a non-permanent resident. Tax residence is separate from your visa.
Is foreign income taxed in Japan?
Permanent residents pay tax on their whole income. Non-permanent residents pay on Japan-source income, foreign income paid in Japan and foreign income remitted to Japan. Non-residents pay only on Japan-source income, which includes pay for work done in Japan even if paid abroad. A pension's treatment is unknown here.
What are the income tax rates in Japan?
National income tax has seven brackets from 5% to 45%: 5% up to ¥1,949,000, 10% to ¥3,299,000, 20% to ¥6,949,000, 23% to ¥8,999,000, 33% to ¥17,999,000, 40% to ¥39,999,000 and 45% above. A 2.1% reconstruction tax is added on the tax amount through 2037. Local taxes are extra.
When do I file a tax return, and what are inhabitant taxes?
The National Tax Agency says returns for a calendar year are due between 16 February and 15 March of the next year; salary earners paid ¥20 million or less by one withholding payer may not need to file. Inhabitant taxes go to your municipality, based on your address on 1 January. Their rate is not read here.
Does Japan have a tax treaty with my country?
Japan's Ministry of Finance lists a convention with each: the US (in force 30 March 2004, protocol 30 August 2019), Canada (1987, protocol December 2000; Canada says the 14th, Japan the 13th), Australia (3 December 2008), New Zealand (25 October 2013). What it does depends on your residence and income; not tax advice.
Sources
Where each figure comes from.
Every figure on this page links to the page we read, with the date we checked it.
- [T1] 2025 Income Tax and Special Income Tax for Reconstruction Guide: 1-2 Final return and 1-3 Taxpayers and the scope of taxable income, National Tax Agency of Japan. Checked 16 October 2026.
- [T2] No.2260 Income tax rates (page in Japanese, laws as of 1 April 2026), National Tax Agency of Japan. Checked 16 October 2026.
- [T3] No.12011 Final tax return, National Tax Agency of Japan. Checked 16 October 2026.
- [T4] Guidebook on Living and Working, 7th edition (March 2025), Immigration Services Agency of Japan. Checked 16 October 2026.
- [T5] Income tax treaties (Japan: DTA signed 31 January 2008, in force 3 December 2008), Australian Treasury. Checked 16 October 2026.
- [T6] Tax treaties in force (Japan), Department of Finance Canada. Checked 16 October 2026.
- [T7] United States income tax treaties A to Z (Japan listed), Internal Revenue Service. Checked 16 October 2026.
- [T8] Tax treaties (double tax agreements in force, Japan listed), Inland Revenue (New Zealand), Tax Policy. Checked 16 October 2026.
- [T9] List of Japan's tax conventions, Ministry of Finance, Japan. Checked 16 October 2026.
- [T10] Status of Agreements in Force (Japan social security agreements; page updated 2 March 2026), Japan Pension Service. Checked 16 October 2026.
- [T11] Digital nomad status: questions and answers (as of July 2024), Immigration Services Agency of Japan. Checked 16 October 2026.
- [T12] Income Tax Guide 2025 (English, for returns filed from February to March 2026), National Tax Agency of Japan. Checked 16 October 2026.