Nobody loves dealing with taxes. But in Japan, the process is actually pretty painless for most people — especially if you work at a regular company. Here’s everything you need to know.
Do Foreigners Have to Pay Tax in Japan?
Yes. If you live in Japan and earn money here, you pay Japanese income tax. This applies to everyone regardless of nationality. There’s no getting around it, and you wouldn’t want to — unpaid taxes can wreck a visa renewal or permanent residency application down the line.
Two Types of Tax Residents
Japan separates taxpayers into two buckets:
| Type | Who | What’s taxed |
|---|---|---|
| Resident | Lived in Japan 1+ year | All worldwide income |
| Non-resident | Less than 1 year | Japan-source income only |
If you’ve been here over a year, you’re a resident for tax purposes. Most working foreigners fall into this category.
Do You Actually Need to File a Tax Return?
Here’s the thing most people don’t realize: if you work full-time at a Japanese company, your employer handles everything for you.
Your company deducts income tax from your monthly paycheck, then does a year-end tax adjustment (年末調整) in December. You get a tax withholding slip (源泉徴収票) in January confirming everything’s been handled. Done.
Who DOES Need to File
You need to file a 確定申告 (Kakutei Shinkoku) yourself if:
- You have two or more jobs
- You’re self-employed or freelance
- Your annual income exceeds ¥20 million
- You changed jobs mid-year and have income from multiple companies
- You have income from overseas
- You want to claim deductions (big medical bills, donations, home loan)
Filing Period
February 16 – March 15 each year.
For the 2024 tax year → file between February 16 – March 15, 2025. Miss this window and you’ll need to file late, which can cause headaches.
How to File
Method 1 — e-Tax Online (Recommended)
- Get a My Number Card with the IC chip activated
- Go to e-tax.nta.go.jp
- Log in with your My Number Card
- Enter your income and deductions
- Submit — takes about 30 minutes once you know what you’re doing
This is by far the easiest way. No lines, no waiting.
Method 2 — In Person at the Tax Office
- Go to your nearest Tax Office (税務署)
- Bring: My Number Card or notification, all income documents, bank account details
- Staff will walk you through the form
Fair warning: tax offices are packed in February and March. Go early in the morning or go in January when it’s quieter.
Japan’s Income Tax Rates
| Annual Income | Tax Rate |
|---|---|
| Up to ¥1,950,000 | 5% |
| ¥1,950,001 – ¥3,300,000 | 10% |
| ¥3,300,001 – ¥6,950,000 | 20% |
| ¥6,950,001 – ¥9,000,000 | 23% |
| ¥9,000,001 – ¥18,000,000 | 33% |
| Over ¥18,000,000 | 40–45% |
On top of this, add roughly 10% for resident tax (住民税) — billed separately starting in June each year.
Resident Tax — The One That Surprises People
Resident tax is a separate bill that shows up in June. It’s based on your previous year’s income, not your current income.
- Rate: approximately 10% of last year’s income
- Paid in 4 installments, or deducted monthly from your salary
- New arrivals: You pay nothing in your first year in Japan, since you had no income here the year before. Enjoy it while it lasts.
Why This Matters for Your Visa
Immigration checks your tax payment history when you apply for visa renewal or permanent residency. Missing taxes — or having unpaid resident tax bills — can seriously hurt your application. Pay on time, keep your documents, and you’ll be fine.
Bottom Line
- Working full-time at a Japanese company → your employer handles it, no action needed
- Self-employed or multiple income sources → file Kakutei Shinkoku by March 15
- Hold on to your withholding slip every January
- Pay those resident tax bills when they show up in June