- Brackets updated
Migrated from production database; research reasoning not recorded.
Top income tax
45.0%
effective 56.0%
Corporate tax
23.2%
Consumption Tax
10.0%
standard rate
Tax residency
β
77 tax treaties
Japan tax profile
Data year: 2026
- Tax system
- Worldwide Worldwide income taxation for permanent residents. Non-permanent residents (foreign nationals resident less than five of the last ten years) are taxed on Japan-sourced income plus foreign income remitted to Japan. Non-residents are taxed on Japan-sourced income only. From tax year 2025, a minimum tax can apply when standard taxable income exceeds JPY 330 million: if 22.5% of the excess over JPY 330 million exceeds regular national income tax, the difference is added (Reiwa 9 reform will lower the threshold to JPY 165 million and raise the rate to 30%).
- 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 on the gain). Crypto gains are currently miscellaneous income at progressive rates; 2026 reform proposals would move qualifying exchange-traded crypto to 20.315% separate taxation once enacted.
- Social security (employee)
- 14.7%
- Social security (employer)
- 15.4%
- Dividend withholding
- 20.4%
- Interest withholding
- 20.4%
- Royalty withholding
- 20.4%
- Inheritance tax
- 55.0%
- Treaty count
- 77
Income tax brackets
Personal income
| Bracket min | Bracket max | Rate |
|---|---|---|
| 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% |
Tax flags
Digital Services Tax
Crypto Rules
Participation Exemption
Non-Dom Regime
Tax residency
- Residency rules
- Resident if the individual has a domicile (jusho) in Japan or has maintained a residence (kyosho) in Japan for one year or more. No simple day-count threshold; facts and circumstances apply.
- Exit tax
- Yes Residents departing Japan with covered financial assets of JPY 100 million or more at market value may be taxed on deemed disposal gains at 15.315% (no inhabitant tax) when they had a jusho or kyosho for more than five years in the prior ten years (visa-type rules affect which years count). Deferral up to five years (extendable to ten) is available with a tax representative and security.
- CFC rules
- Yes Japanese parent companies include undistributed profits of foreign related corporations when effective foreign tax rates fall below trigger rates (27% for paper/cash-box companies, 20% otherwise) under entity-based or income-based tests. A 10%+ interest triggers filing and inclusion obligations.
- Non-dom regime
- Non-permanent residents (foreign nationals who have lived in Japan for less than five of the last ten years) are only taxed on Japan-sourced income and foreign income remitted to Japan.
Filing information
- Fiscal year
- 01-01 β 12-31
- Filing deadline
- March 15
Sources
- NTA Tax Answer No.2260 β income tax rates (accessed Oct 9, 2026) National PIT brackets and reconstruction surtax (2.1% through Reiwa 8); PIT defense surtax from Reiwa 9
- PwC Worldwide Tax Summaries β Japan (accessed Oct 9, 2026) PIT surcharges, minimum tax, non-resident rules, social insurance, CIT, consumption tax, CFC, withholding
- MOF β List of Japan tax conventions (accessed Oct 9, 2026) Count of bilateral tax conventions in force
- JETRO β Corporate taxes in Japan (accessed Oct 9, 2026) Special Defense Corporate Tax from FY beginning 1 April 2026