🇯🇵 Japan Tax Guide - Income Tax, Corporate Tax & Special Regimes

Top income tax 45.0% effective 56.0%

Corporate tax 23.2%

Consumption Tax 10.0% standard rate

Tax residency — 84 tax treaties

Japan tax profile

Data year: 2025

Tax system: Worldwide Worldwide income taxation for permanent residents. Non-permanent residents (foreign nationals resident <5 of last 10 years) taxed on Japan-sourced income plus foreign income remitted to Japan. Non-residents taxed on Japan-sourced income only.
Top PIT rate: 45.0% (eff. 56.0%)
Corporate tax rate: 23.2%
Consumption Tax: 10.0%
Capital gains tax: 20.3% Listed shares: 20.315% (15.315% national + 5% local). Real estate: progressive rates based on holding period (30% short-term, 15% long-term). Crypto gains taxed as miscellaneous income at progressive rates up to 55%.
Social security (employee): 15.0%
Social security (employer): 15.0%
Dividend withholding: 20.4%
Interest withholding: 20.4%
Royalty withholding: 20.4%
Inheritance tax: 55.0%
Treaty count: 84

Personal income

Personal income brackets
Bracket min	Bracket max	Rate	USD equivalent
JPY 0	JPY 1,950,000	5.0%	--
JPY 1,950,000	JPY 3,300,000	10.0%	--
JPY 3,300,000	JPY 6,950,000	20.0%	--
JPY 6,950,000	JPY 9,000,000	23.0%	--
JPY 9,000,000	JPY 18,000,000	33.0%	--
JPY 18,000,000	JPY 40,000,000	40.0%	--
JPY 40,000,000	and above	45.0%	--

Digital Services Tax Crypto Rules Participation Exemption Non-Dom Regime

Residency rules: Resident if has a domicile (jusho) in Japan or has maintained a residence (kyosho) in Japan for one year or more. No specific day count threshold - based on facts and circumstances.
Exit tax: Yes
CFC rules: Yes
Non-dom regime: Non-permanent residents (foreign nationals who have lived in Japan for less than 5 out of the last 10 years) are only taxed on Japan-sourced income and foreign income remitted to Japan.

PwC Worldwide Tax Summaries - Japan (accessed Mar 23, 2026) PIT, CIT, consumption tax, withholding rates
NTA Japan (accessed Mar 23, 2026) Official tax authority