Guide
Japan take-home pay 2026 (手取り): social insurance, income tax and resident tax explained
Your Japanese salary offer is a gross figure (額面). What reaches your bank account each month, your take-home pay or 手取り, is lower: social insurance premiums, income tax and resident tax are all deducted. This guide explains each deduction for 2026 using official rates, then walks through a worked example. It’s general education, not tax advice. Figures are for tax year 2026 (令和8年分), checked on 2026-10-12.
To estimate your own figure, use the Japan take-home pay calculator.
What is deducted from a Japanese salary?
For a salaried employee covered by 協会けんぽ, there are four employee-paid social insurance items, plus two taxes:
| Deduction | 2026 rate | Employee share |
|---|---|---|
| Health insurance (健康保険) | 9.85% in Tokyo; varies by prefecture (協会けんぽ, from the March 2026 premium) | half |
| Long-term care insurance (介護保険), age 40–64 only | 1.62% | half |
| Child and childcare support levy (子ども・子育て支援金), new | 0.23% (from the April 2026 premium) | half |
| Employees’ pension (厚生年金) | 18.3% | half (9.15%) |
| Employment insurance (雇用保険) | 0.5% of wages (general businesses, FY2026) | employee rate |
| Income tax (所得税) + reconstruction surtax | progressive, 5%–45%, × 102.1% | — |
| Resident tax (住民税) | about 10% of taxable income, plus flat charges | — |
Health, care, support levy and pension premiums are charged on your standard monthly remuneration (標準報酬月額), a pay grade rather than your exact salary. Pension is capped at a standard monthly amount of JP¥650,000.
Take-home pay = gross salary − social insurance (health + care + support levy + pension + employment) − income tax − resident tax
How is income tax calculated for 2026?
Income tax starts from employment income (給与所得): your salary minus the employment income deduction (給与所得控除). Social insurance and the basic deduction (基礎控除) are then subtracted, and the progressive rates apply. The result is multiplied by 102.1% to add the 2.1% reconstruction surtax.
The 2026 tax reform raises two deductions:
- Basic deduction: up to JP¥1.04 million where total income is JP¥4.89 million or less, JP¥670,000 up to JP¥6.55 million, and JP¥620,000 above that, tapering to zero at the top.
- Employment income deduction: a minimum of JP¥740,000 for salaries up to JP¥2.2 million.
These changes come into force on 1 December 2026 and apply to all of your 2026 income. The Q&A from 国税庁 (NTA), Japan’s tax agency, says in Q1-1 that they are 「令和８年12月１日に施行され、令和８年分以後の所得税について適用されます」 and that withholding on salary through November 2026 does not change. In practice:
- January to November 2026: monthly withholding uses the existing tables, so it is higher than the final tax.
- The year-end adjustment carried out on or after 1 December (normally with December pay) recalculates the full-year tax with the new deductions, so a refund is usual.
- If your last 2026 salary is paid by 30 November (for example, you leave mid-year), that adjustment uses the old amounts; the new ones can be claimed through a tax return (確定申告).
- From 1 January 2027, new withholding tables apply.
The calculator shows the annual tax after the year-end adjustment, not your monthly withholding.
Why is resident tax only an estimate?
Resident tax (住民税) is charged on the previous calendar year’s income and deducted from June to the following May. The calculator works out resident tax on your 2026 salary, which is the amount collected from June 2027, so it describes a steady state, not this year’s payslip.
It uses the standard 10% rate on taxable income, a basic deduction of JP¥430,000 (resident tax’s basic deduction was not raised), the minimum JP¥740,000 employment income deduction (which applies to resident tax from the 2027 assessment), an adjustment credit, and flat charges of JP¥4,000 plus the JP¥1,000 forest environment tax.
Worked example: JP¥4 million in Tokyo, age 30, single
| Step | Calculation | Result |
|---|---|---|
| Monthly salary | 4,000,000 ÷ 12 | JP¥333,333 |
| Standard monthly remuneration | grade for JP¥330,000–350,000 | JP¥340,000 |
| Health insurance | 340,000 × 9.85% ÷ 2 | JP¥16,745 |
| Child support levy | 340,000 × 0.23% ÷ 2 | JP¥391 |
| Employees’ pension | 340,000 × 18.3% ÷ 2 | JP¥31,110 |
| Employment insurance | 333,333 × 0.5% (rounded) | JP¥1,667 |
| Social insurance, year | 49,913 × 12 | JP¥598,956 |
| Employment income | 4,000,000 × 80% − 440,000 | JP¥2,760,000 |
| Taxable income (income tax) | 2,760,000 − 598,956 − 1,040,000, rounded down to JP¥1,000 | JP¥1,121,000 |
| Income tax incl. surtax | 1,121,000 × 5% × 102.1%, rounded down to JP¥100 | JP¥57,200 |
| Taxable income (resident tax) | 2,760,000 − 598,956 − 430,000, rounded down | JP¥1,731,000 |
| Resident tax (estimate) | 10% less JP¥2,500 adjustment credit, plus JP¥5,000 flat | JP¥175,500 |
| Take-home pay | 4,000,000 − 598,956 − 57,200 − 175,500 | JP¥3,168,344 (JP¥264,029 a month on average) |
Monthly withholding through November uses the existing table, so this person has more tax withheld during the year than the annual JP¥57,200. The difference, roughly JP¥30,000, would normally come back in the year-end adjustment.
You can verify the same defaults in the Japan take-home pay calculator. Change salary, workplace prefecture and age to estimate your own figure.
Other salaries, from the same calculator logic:
| Case | Social insurance | Income tax | Resident tax (est.) | Take-home |
|---|---|---|---|---|
| JP¥2M, Tokyo, 25, single | JP¥299,460 | JP¥0 | JP¥55,500 | JP¥1,645,040 |
| JP¥6M, Osaka, 45, spouse with no income | JP¥938,400 | JP¥104,700 | JP¥268,500 | JP¥4,688,400 |
| JP¥10M, Tokyo, 35, single | JP¥1,265,676 | JP¥822,200 | JP¥637,800 | JP¥7,274,324 |
At JP¥10 million the pension cap applies, which is one reason the share of pay lost to social insurance falls as salary rises.
What does the calculator leave out?
These simplifications are disclosed on the calculator too:
- Pay in 12 equal months, with no bonus, overtime or commuting allowance. In practice, your standard monthly remuneration is set from April to June pay.
- 2026 rates applied for all 12 months. In reality the new health rates started with the March premium, the support levy with April, and employment insurance was 0.55% until March.
- Income tax is the full-year amount after the year-end adjustment, not monthly withholding.
- Resident tax is an estimate at standard rates. Some municipalities charge more.
- 協会けんぽ only; company health insurance societies differ.
- Not modelled: the special spouse deduction, life insurance, iDeCo, medical, furusato nozei and housing loan deductions, other income, and ages 70 and over.
FAQ
How is take-home pay calculated in Japan?
Take-home pay (手取り) is gross salary minus social insurance (health, long-term care, the child-support levy, employees’ pension and employment insurance), income tax and resident tax. Premiums use standard monthly remuneration; income tax is the full-year amount after the year-end adjustment; resident tax is an estimate on the previous year’s income.
What is included in social insurance?
For a salaried employee on 協会けんぽ, the employee share covers health insurance, long-term care (ages 40–64), the child and childcare support levy, employees’ pension and employment insurance. Health, care, levy and pension are half of the rate on standard monthly pay; employment insurance is 0.5% of wages for general businesses in FY2026.
How does the 2026 basic deduction (基礎控除) change?
Under the 2026 reform, the basic deduction is up to JP¥1.04 million where total income is JP¥4.89 million or less, JP¥670,000 up to JP¥6.55 million, and JP¥620,000 above that. The employment income deduction minimum is JP¥740,000. The changes take effect on 1 December 2026 and apply to all of tax year 2026.
When is resident tax charged, and on which income?
Resident tax (住民税) is charged on the previous calendar year’s income and withheld from June to the following May. The calculator estimates tax on your 2026 salary — the amount collected from June 2027. First-year graduates with no prior-year income usually pay none in their first year of work.
What is the difference between year-end adjustment and monthly withholding?
Monthly income tax is withheld from a table; the full-year tax is settled in the year-end adjustment (年末調整), usually with December pay. In 2026 the higher deductions take effect on 1 December and apply to the whole year, so withholding through November is often high and a refund is usual for most salaried employees.
How can I estimate take-home pay from annual salary?
Match gross salary, the prefectural 協会けんぽ branch of your workplace, age and dependents. With the same assumptions as this guide’s example, you can verify the figures in the Japan take-home pay calculator. Bonuses or a company health insurance society make the result an approximation only.
Why does the calculator use 協会けんぽ rates?
協会けんぽ publishes prefectural branch rates that are easy to compare. If your employer uses a company health insurance society (健康保険組合) or mutual aid association, rates differ, so treat the result as a guide. Pick the branch for your workplace to reflect the rate difference.
Why is my December pay often higher than usual?
Monthly income tax is withheld from a table, and the full-year tax is settled in the year-end adjustment (年末調整), usually with December pay. In 2026 the higher deductions come into force on 1 December and apply to the whole year, so a refund is usual for most salaried employees.
Why is the resident tax on my payslip different from the estimate?
Resident tax is charged on the previous year’s income and deducted from June to the following May. The calculator estimates the resident tax on your 2026 salary, which is collected from June 2027. What you pay in 2026 is based on 2025 income, and first-year graduates usually pay none.
Does the calculator work if my employer has its own health insurance society?
Only approximately. It uses the Japan Health Insurance Association (協会けんぽ) rates for the prefecture of your workplace. Company health insurance societies (健康保険組合) and mutual aid associations set their own rates.
Why are deductions higher from age 40?
From 40 to 64, employees also pay long-term care insurance (介護保険). For 協会けんぽ members the 2026 rate is 1.62% of standard monthly pay, split equally with the employer.
Is this tax advice?
No. This guide and the calculator are general education and illustrative estimates, not tax advice. Prefer your withholding slip, resident-tax notice and payslip for official figures, and check with a tax professional or your municipality if you need advice.
Related guides
- Currency conversion cost: relevant if you move yen to or from another currency.
- Hong Kong salaries tax 2025/26: a contrast with a system that has no payroll social insurance beyond MPF.
Sources
All checked 2026-10-12. Tax year 2026 (令和8年分) unless stated.
- 国税庁 (NTA), Q&A on the 2026 reform (基礎控除の引上げ等関係), Q1-1
- 国税庁, Tax Answer No.1199: basic deduction and No.1410: employment income deduction
- 国税庁, Tax Answer No.2260: income tax rates
- 協会けんぽ (Japan Health Insurance Association), FY2026 prefectural rates, long-term care rate and child and childcare support levy rate
- 日本年金機構 (Japan Pension Service), employees’ pension premium table
- 厚生労働省 (MHLW), FY2026 employment insurance rates
- 総務省 (MIC), resident tax basic deduction; 東京都主税局, individual resident tax
This guide is for general education only and isn’t tax advice. See our disclaimer.