Taxes & Pension

Japan has multiple tax types and a mandatory pension system. The basics: if you're a resident, you pay income tax (national), residence tax (local), and contribute to either National Pension or Employees' Pension.

TIP

This page is informational. For your specific situation, consult a licensed tax accountant (税理士 zeirishi) or your ward office.

Income Tax (所得税)

• National Tax Agency (NTA) - Official English info on income tax, returns, and procedures.
• NTA Income Tax Guide for Foreigners - Official PDF guide.
• Tax Answer (English) - FAQ-style answers on common tax questions.

Tax Residency Status

• Non-resident - Less than 1 year in Japan. Only taxed on Japan-sourced income.
• Non-permanent resident - In Japan 1-5 of past 10 years. Taxed on Japan income plus foreign income remitted to Japan.
• Permanent resident (for tax) - 5+ of past 10 years. Taxed on worldwide income.

Residence Tax (住民税)

• Paid to your prefecture and city. Roughly 10% of taxable income.
• Billed based on previous year's income, not current. Plan for this if your income drops or you leave Japan mid-year.
• Tokyo Metropolitan Tax Bureau - English info on residence tax for Tokyo residents.

Consumption Tax (消費税)

• 10% on most purchases. 8% on food and non-alcoholic drinks.
• Already included in displayed prices in most stores.

National Pension (国民年金) & Employees' Pension (厚生年金)

• Japan Pension Service - Official site with English info.
• Pension Booklet (English) - Overview of how the system works.

Two Pension Types

• National Pension (Kokumin Nenkin) - Mandatory for self-employed, students, and unemployed residents aged 20-59. Flat monthly contribution.
• Employees' Pension (Kosei Nenkin) - Automatic for company employees. Higher contribution (split with employer), higher benefits.

Lump-Sum Withdrawal (脱退一時金)

• If you leave Japan after paying into pension, you can claim a partial refund.
• Apply within 2 years of departure.
• Lump-Sum Withdrawal Guide

Totalization Agreements

• Social Security Agreements - Japan has treaties with the U.S., Canada, UK, Germany, and 20+ other countries. Pension contributions can transfer between countries.

Filing Your Tax Return

• Tax year = calendar year (Jan-Dec).
• File between mid-February and mid-March.
• If you're a company employee with only one salary, your employer usually handles it (年末調整 nenmatsu chosei).
• Self-employed, freelancers, and people with multiple incomes must file.
• E-Tax - Online filing system. English support is limited; many people file in person.

My Number (マイナンバー)

• Japan's individual tax/social security ID number.
• Required for tax filing, opening accounts, starting jobs.
• My Number Official

Helpful Services

• TokyoCheapo Tax Guide - Practical English overview.
• TaxesForExpats Japan - U.S. expat tax help specifically for those in Japan.
• Greenback Expat Tax Services - U.S. expat tax filing.
• Tax Office Locator - Find your local tax office.
• RetireJapan - English-language community on investing, NISA, iDeCo, and pension planning in Japan.
• r/JapanFinance Wiki - Crowdsourced wiki covering taxes, pension, investing, and crypto in Japan.
• Freee Tax Filing - Most popular software for self-employed tax filing.
• MoneyForward ME - Personal finance tracker that integrates with Japanese banks and brokerages.

Common Questions

• Do I pay U.S. taxes if I live in Japan? - U.S. citizens must file every year regardless of where they live. Most owe nothing thanks to the Foreign Earned Income Exclusion and Foreign Tax Credit, but you must file.
• What if I leave Japan? - File a final tax return before leaving and appoint a tax representative (納税管理人) for any post-departure obligations.
• Do I need a tax accountant? - For simple salaried jobs, no. For freelancing, business ownership, or complex situations, yes.