East Asia
Japan tax rates 2026
A high-tax jurisdiction. The top combined income tax rate is near 56%, and the country has the world's highest inheritance tax, reaching 55%, which applies to the worldwide estates of long-term foreign residents.
Worldwide (residence-based)
Last verified
The taxes
| Personal income (top) | 45% national rate (about 55.9% combined with the 10% local inhabitant tax).The national tax is progressive, running 5–45%, with the top bracket applying above JPY 40M. On top of that sits a flat 10% local inhabitant tax and a 2.1% reconstruction surtax on the national tax. |
|---|---|
| Corporate income | About 29.7% effective (national rate of 23.2% plus local taxes). |
| Capital gains | 20.315% flat on listed securities (15.315% national plus 5% local). |
| VAT / Consumption Tax (消費税) | 10% |
| Dividends (WHT) | 20.42% for non-residents, or 15.315% on listed shares. |
| Interest (WHT) | 15.315%, rising to 20.42% on certain payments to non-residents. |
| Royalties (WHT) | 20.42% |
| Social security (employee) | About 15% (pension at 9.15%, health at about 5%, plus care insurance). |
| Social security (employer) | ~15%+ (pension 9.15% + health + labour insurance) |
| Wealth tax | None |
| Inheritance / estate | 10–55% progressive, the world's highest top rate. This applies as a worldwide estate tax for long-term or Table-2-visa residents. |
| Property tax | A fixed asset tax of 1.4% of assessed value, plus a city planning tax. |
| Other | A reconstruction surtax of 2.1% on income tax, plus a 10% local inhabitant tax. |
How the system works
- Tax system
- Worldwide (residence-based)
- Foreign income
- Taxed (worldwide)
- Taxes by citizenship
- No
- Exit tax
- Yes, leaving has a cost
- CFC rules
- Yes
- CRS
- Participating
A special regime for new arrivals
Non-permanent residents, meaning non-Japanese nationals resident 5 years or less in the preceding 10, are taxed on Japan-source income plus foreign-source income remitted to Japan. This is a genuine remittance basis, but it expires, and it does not protect against inheritance tax.
Rates checked July 2026: the top marginal income tax rate, the standard VAT rate and the main corporate rate.
Ways to relocate to Japan
The residency and citizenship routes that lead here, weighed against the tax picture above.