Japan tax rates
The top rates a resident individual pays on each kind of income, computed by the Sovereign tax engine from its Japan tax profile.
Sources incomplete — at least one figure has no accepted source yet. Figures last changed 3 November 2026. Profile last reviewed 27 May 2026.
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| Salary | Capital gains | Dividends | Interest | Rent | Crypto gains | |
|---|---|---|---|---|---|---|
| Japan | 56.17% | 20.31%† | 20.31%† | 20.31%† | 55.95%† | 55.95% |
† This figure rests on a PwC tax summary, not on the statute itself. The summary is the only source on file for it.
Each figure is the tax on one more unit of a very large amount of that income, with every layer the engine models: surtaxes and uncapped social contributions included. It is the top marginal rate, not the average rate you pay on all your income.
What is the top income tax rate in Japan?
The top rate on a salary is 56.17%. It is the tax on each extra unit of a very high salary, with surtaxes and uncapped social contributions included. The income tax scale alone reaches 45% above JPY 40,000,000.
How are capital gains taxed in Japan?
The top rate on a long-term capital gain is 20.31%. The rate does not depend on how long you held the asset.
How are dividends and interest taxed in Japan?
The top rate is 20.31% on dividends and 20.31% on interest. Rental income is taxed at up to 55.95%.
How is crypto taxed in Japan?
Japan taxes a gain on crypto assets as income, at up to 55.95%.
Does Japan tax foreign income?
Yes. Japan taxes its residents on their worldwide income. A tax treaty or a credit for foreign tax can reduce the tax on income from abroad.
Does Japan have a wealth tax?
No. Japan has no recurring national tax on net wealth in our model. Property taxes and taxes on gifts or inheritances are separate.
Does Japan have an exit tax for individuals?
Yes. Japan can tax unrealised gains, or some of them, when a resident individual moves abroad. The conditions depend on the asset and the holding.
What special tax regimes does Japan have?
Our profiles list 2 regimes: Non-Permanent Resident (NPR) Status (up to 5 years) — information only; not numerically modelled; Non-Resident Flat Tax. Each has its own conditions.
When do you become tax resident in Japan?
The Japan day test (domicile or one continuous year of residence): domicile, or residence maintained continuously for at least one year. A Japanese residence card and travel days do not by themselves prove domicile or maintained residence. A treaty can decide dual residence.
Residence decides whether Japan taxes you on these rates. See the Japan day-count test and count your own days.
Sources
The Japan profile cites 8 sources for these rules, 8 of them from a government or a statute.
- 所得税法 第89条 (税率) - e-Gov法令検索 · official, retrieved 2026-10-23
- 全国健康保険協会 (協会けんぽ) 東京支部 - 令和8年3月分からの健康保険・厚生年金保険の保険料額表 · official, retrieved 2026-10-23
- 日本年金機構 - 厚生年金保険の保険料 · official, retrieved 2026-10-23
- 健康保険法 第161条・厚生年金保険法 第82条 (保険料の負担) - e-Gov法令検索 · official, retrieved 2026-10-23
- 山形労働局 (厚生労働省) - 令和8年度の雇用保険料率について · official, retrieved 2026-10-23
- 労働保険の保険料の徴収等に関する法律 第11条 - e-Gov法令検索 · official, retrieved 2026-10-23
- 所得税法 第74条 (社会保険料控除) - e-Gov法令検索 · official, retrieved 2026-10-23
- 地方税法 第34条・第35条・第314条の3・第294条 - e-Gov法令検索 · official, retrieved 2026-10-23
The model covers the general rules for a resident individual. It does not cover every deduction, credit, tax treaty or local tax, and rules change after the check date above. Did you find an error? Tell us, with the source.
Compare Japan with other countries
Top rates do not show what you would pay. Sovereign applies these rules to your own assets, income and debts, and compares the result across 165 countries. Put Japan side by side with other countries, see every country or try the live demo.
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