I'm sure one of the long-termers/people with a proper job can help with this...

What are the income tax brackets in Japan? (I.e. where are the cut-off points between the different tax rates?)

Hope this is the right place for this Q - tried searching both this site and elsewhere, but couldn't find an obvious answer.

Thanks in advance for any help.

Found what I think is the right answer about 30 seconds after posting.

FYI, and please correct me if this is wrong, I think the brackets/rates are:

0-3,300,000 (taxable income) - 10% (tax rate)

3,300,000-9,000,000 - 20%

9,000,000 - 18,000,000 - 30%

18,000,000+ - 37%

samuraiwig wrote:I'm sure one of the long-termers/people with a proper job can help with this...

What are the income tax brackets in Japan? (I.e. where are the cut-off points between the different tax rates?)

Good question! I don't think about income tax brackets in Japan being that I'm a salaryman ----meaning I never do my own Japanese taxes. Howeverm I do know that my net take-home is about 5% more here than the US although my standard of life is concretely lower.

Just to get the ball rolling, here's a general guide:
http://www.kkc-usa.org/index.cfm/3060

Thanks Taro.

I'm currently a teacher (not an eikaiwa drone any more, fortunately) and am looking to move up the food chain soon. Just wondering how much of a salary jump I need make from an eikaiwa-type salary in order for it not to be negated by an increase in tax.

Found this link to the MoF tax guide (in eigo):
http://www.mof.go.jp/english/tax/taxes2003e.htm

It's typically bureaucratic, but kind of useful.

I'm sure that I'm not actually paying 10% right now - more like 5% I guess. Is there a monthly 'non-taxable' allowance, or some kind of minimum threshold above which tax begins to be assessed?

samuraiwig wrote:I'm currently a teacher (not an eikaiwa drone any more, fortunately) and am looking to move up the food chain soon. ...

Ahhhh, an FG reversing his karmic cycle and "looking-to-move-up-the-food-chain-soon".

Gee in my mind, you just gave yourself a moniker Samuraiwig-sama.



Anyway, most teachers who escape aren't hit too hard by "bracket creep"; that is, the jump in the tax rate at 9,000,000yen/yr bracket is major a "move up the food chain."
3,300,000-9,000,000 - 20%
9,000,000 - 18,000,000 - 30%

samuraiwig wrote:Thanks Taro.

I'm currently a teacher (not an eikaiwa drone any more, fortunately) and am looking to move up the food chain soon. Just wondering how much of a salary jump I need make from an eikaiwa-type salary in order for it not to be negated by an increase in tax.

I haven't been in Japan for several years now but...I think income tax there works the same way as in the USA. If so...A jump up in salary is never "negated" by an increase in tax bracket. The increase in taxes is only on the extra income, not all your income.

In other words, if you made 3mil yen you'd pay 10%. If you made 4mil yen the next year, you would pay 10% on the first 3mil and then pay 20% only on the last 1mil, not on the whole 4mil.

Well, assuming you only have a single paycheck from your employer in Japan (and no other business income or other forms of "temporary" income), you will have to pay a national tax and local taxes. The information I have may be slightly outdated, but when you factor in local taxes, the combined marginal income tax rates for individuals in Japan are:

0 - 2 million: 15%
2 million - 3.3 million: 20%
3.3 million - 7 million: 30%
7 million - 9 million: 33%
9 million - 18 million: 43%
anything over (yeah, right): 50%

Thanks for all the info.

I'll get to work on that moniker Taro

And then I'll have to try and outdo/replace it ASAP...

"moving-up-the-food-chain-soon"