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How Residence Tax Is Calculated

Japan residence tax calculation surprises newcomers because the bill arrives a year late. You earn income in one calendar year, then the municipality bills you from June of the next year.1

Confirm current details with official sources

Procedures, fees, and requirements can change. Confirm current details at the Ministry of Internal Affairs and Communications residence-tax pages and your municipal tax office. This article is general information, not tax advice; for your specific case, consult a licensed tax accountant (zeirishi).

Overview​

住民税 (juminzei, "residence tax") is the prefectural plus municipal local tax every resident pays on individual income.2 It has two components: a flat 10 percent income-based portion and a small fixed per-capita levy.13

The structure is uniform nationwide, while exact per-capita amounts and installment dates vary by municipality. Confirm the local figures with your city or ward office before budgeting.

The two components of the bill​

Your annual bill is the sum of the income-based portion and the per-capita levy. The table below shows the standard shape; figures are dated because municipalities revise them.

ComponentStandard figureAs ofNotes
Income-based portion (所得割)10 percent flat2026-011Prefectural plus municipal combined
Per-capita levy (均等割)About 5,000 JPY per year2026-011Standard 4,000 JPY plus forest environment tax

Figures above reflect the standard national shape (as of 2026-01; confirm current figures with your municipal tax office). Local variation is small but real.

The income-based portion at 10 percent​

The 所得割 (shotoku-wari, "income-based portion") applies a flat 10 percent to year-N taxable income (as of 2026-01; confirm current figures with the Ministry of Internal Affairs and Communications).13 The standard split is 4 percent prefectural tax plus 6 percent municipal tax.34

In designated cities the split becomes 2 percent prefectural plus 8 percent municipal, with the 10 percent total unchanged (as of 2026-01).3 In Tokyo's 23 wards the same total divides into metropolitan tax plus special-ward tax.5

Flat rate means every taxable yen costs the same

National income tax rises through brackets, but the income-based residence-tax portion charges the same flat 10 percent from the first taxable yen (as of 2026-01).1 High earners feel the June bill most because nothing about this portion is progressive.

The deduction base resembles income tax but uses slightly different deductions, so the residence-tax figure will not equal exactly 10 percent of your income-tax base.1 Do not copy the national-tax computation and expect the same answer.

The per-capita levy​

The 均等割 (kinto-wari, "per-capita levy") is a fixed annual charge independent of income. The standard amounts are 1,000 JPY prefectural plus 3,000 JPY municipal per year (as of 2026-01; confirm current figures with your municipal tax office).3

From 2024 a 1,000 JPY forest environment tax (森林環境税, shinrin kankyo zei, "forest environment tax") is collected alongside, bringing the typical combined total to about 5,000 JPY per year (as of 2026-01).1 Exact totals vary slightly by municipality.2

Which income year a bill belongs to​

Residence tax is retrospective. The municipality computes your bill from the January 1 to December 31 income of the prior year, then sends the notice in May to June.15

The diagram shows the one-year lag that defines the whole system. Every June bill pays for the previous calendar year, never the current one.

Year-N income is billed from June of year N+1​

The assessment date (賦課期日, fuka kijitsu, "assessment date") is January 1. Liability for an assessment year follows where you are registered as of January 1 of that year.564

A person not resident in Japan on January 1 owes no residence tax for that assessment year.56 This single rule explains every newcomer pattern below.

What a mid-year arrival pays in years 1, 2, and 3​

Arrive mid-year 1 and you have no January 1 record in year 1, so there is no year-1 assessment and no bill in year 1.56 Year 1 feels tax-free; it is actually tax-deferred.

Resident on January 1 of year 2, the year-2 assessment covers your partial year-1 income and bills from June of year 2.16 The year-3 assessment then covers full year-2 income and is your first full-size bill.1

Year 1 silence is not an exemption

No bill in year one reflects the January 1 rule, not a newcomer exemption. Set aside roughly 10 percent of income from month one so the year-two and year-three bills land on savings, not on shock.

Reading your annual tax notice​

The notice (納税通知書, nozei tsuchisho, "tax payment notice") states the annual amount with the income and per-capita breakdown plus installment due dates.56 Check that the income figure matches your prior-year earnings before paying.

Salaried employees usually never see slips. The employer receives the annual figure from the municipality and deducts one twelfth each month from June through May of the following year.15

Residence tax arrears and visa renewal screening​

Unpaid residence tax leaves a paper trail that immigration can see. Permanent residence screening requires proper performance of public duties including tax payment, and even late-paid tax is evaluated negatively in principle (as of 2026-02).7

Visa renewal can require levy and payment certificates, so arrears surface at renewal time as well.6 The Financial and Tax Criteria for Permanent Residency explains how examiners read that record. Pay on schedule and keep the receipts.

Good to know​

The 10 percent is flat, so high earners feel the June bill most​

National income tax climbs through brackets while the income-based residence-tax portion charges one flat rate (as of 2026-01).13 Anyone modeling take-home pay from the national brackets alone will undercount the June effect.

Tokyo's 23 wards split the same 10 percent differently​

The ward plus metropolitan division replaces the standard municipal plus prefectural labels, but the combined 10 percent does not change.5 Moving between a ward and a designated city changes the labels on the slip, not the total rate.

Deductions resemble income tax but are not identical​

The taxable-income base is similar to the national one with slightly different deductions.1 Treat any hand computation as an estimate and let the notice be the final word.

See also​

References​

Footnotes​

  1. TOMA Consultants Group. Japanese Residents' Tax (rate, schedule, ordinary and special collection). https://toma.co.jp/en/blog/jtg/japanese-residents-tax ↩ ↩2 ↩3 ↩4 ↩5 ↩6 ↩7 ↩8 ↩9 ↩10 ↩11 ↩12 ↩13 ↩14

  2. Ministry of Internal Affairs and Communications. Individual residence tax system (個人住民税). https://www.soumu.go.jp/main_sosiki/jichi_zeisei/czaisei/czaisei_seido/150790_06.html ↩ ↩2

  3. OECD. Taxing Wages 2026: Japan (standard 10 percent rate; 4 percent prefectural plus 6 percent municipal; designated-city 2 plus 8 split; per-capita 1,000 plus 3,000). https://www.oecd.org/en/publications/taxing-wages-2026_3a5169ef-en/full-report/japan_2a0a001e.html ↩ ↩2 ↩3 ↩4 ↩5 ↩6

  4. JETRO USA. Overview of Personal Tax System (prefectural 4 percent, municipal 6 percent; domicile as of January 1). https://www.jetro.go.jp/usa/overview-of-personal-tax-system.html ↩ ↩2

  5. Tokyo Metropolitan Tax Bureau. Guide to Metropolitan Taxes 2020 (English PDF; January 1 rule, installments, special collection June to May). https://www.tax.metro.tokyo.lg.jp/book/guidebookgaigo/guidebook2020e.pdf ↩ ↩2 ↩3 ↩4 ↩5 ↩6 ↩7 ↩8

  6. City of Ashiya. Taxes: A guide for foreign residents (PDF; January 1 domicile rule, four installments, nozei kanrinin, visa tax certificates). https://www.city.ashiya.lg.jp/kokusai/spanish/documents/taxes.pdf ↩ ↩2 ↩3 ↩4 ↩5 ↩6

  7. Immigration Services Agency. Guidelines concerning permission for permanent residence (revised 2026-02-24). 2026. https://www.moj.go.jp/isa/applications/resources/nyukan_nyukan50.html ↩