Japan Personal Income Tax Guide (IIT)

Japan's Individual Income Tax (所得税) uses a progressive seven-bracket structure from 5% to 45%, paired with a flat 10% inhabitant tax (住民税). A reconstruction surcharge of 2.1% of IIT applies until 2037. The basic deduction is JPY 480,000, and filing is annual with a 15 March deadline.

Japan's 所得税 (Individual Income Tax, IIT) is administered by the National Tax Agency (国税庁, NTA). Taxpayers also owe 住民税 (inhabitant tax) levied by prefectures and municipalities. For related guidance, see our Corporate Tax Guide →, Consumption Tax Guide →, and Investment Income Guide →.

IIT Tax Brackets 2026 (National Income Tax)

Japan uses a progressive seven-bracket system on taxable income (総所得金額 minus deductions):

5% — on the first JPY 1,950,000 of taxable income
10% — on JPY 1,950,001 to JPY 3,300,000
20% — on JPY 3,300,001 to JPY 6,950,000
23% — on JPY 6,950,001 to JPY 9,000,000
33% — on JPY 9,000,001 to JPY 18,000,000
40% — on JPY 18,000,001 to JPY 40,000,000
45% — on JPY 40,000,001 and above

Inhabitant Tax (住民税)

Flat rate 10% of taxable income — composed of prefectural tax (都道府県税) 4% and municipal tax (市町村民税) 6%.
Levied on the previous year's income, collected via employer withholding (特別徴収) or self-payment (普通徴収).
A flat per-capita amount (均等割) of approximately JPY 5,000 combined also applies.

Reconstruction Surcharge (復興特別所得税)

An additional 2.1% of the national IIT amount for tax years 2013 through 2037.
For example, if your IIT liability is JPY 500,000, the surcharge is JPY 10,500 (2.1% × JPY 500,000).
Applied automatically via the withholding tax tables and year-end adjustment.

Basic Deduction (基礎控除)

JPY 480,000 for taxpayers with total income of JPY 24,000,000 or less.
Phases out for higher-income earners: reduced to JPY 320,000 for income JPY 24–45M, JPY 160,000 for JPY 45–55M, and zero above JPY 55M.

Other Key Deductions

Employment income deduction (給与所得控除): A formula-based deduction for salaried employees ranging from JPY 550,000 to JPY 1,950,000 depending on gross salary.
Social insurance premiums (社会保険料控除): Full deduction for health insurance, pension (国民年金/厚生年金), and long-term care insurance premiums paid.
Spousal deduction (配偶者控除): Up to JPY 380,000 if spouse's income is under JPY 1,030,000; spousal special deduction (配偶者特別控除) for incomes up to JPY 2,010,000.
Life insurance deduction (生命保険料控除): Up to JPY 40,000 (old policies) or JPY 120,000 (new policies) combined for life, medical, and personal accident insurance.
Medical expense deduction (医療費控除): Medical expenses exceeding JPY 100,000 or 5% of total income (whichever is lower), up to a maximum of JPY 2,000,000.

Filing Requirements

Filing deadline: 16 February to 15 March each year (確定申告).
Residents: File on worldwide income. Foreign tax credits available for taxes paid abroad.
Non-residents: Withholding at source — generally 20.42% on employment income for stays exceeding 1 year; otherwise tax-free on foreign-source income.
Year-end adjustment (年末調整): Employers adjust withholding annually for most salaried employees, often eliminating the need for a separate filing.