JAPAN INCOME TAX RATE
When purchasing investment property in any country, understanding the tax implications is very important.
If your net income is positive and you own a property in your personal name, submitting a tax return is necessary, the personal income is taxed based on the following tax rates:
If your net income is positive and you own a property in your personal name, submitting a tax return is necessary, the personal income is taxed based on the following tax rates:
Taxable Income (from) |
Taxable Income (to) |
Tax Rate |
- |
1,950,000 |
5% |
1,950,000 |
3,300,000 |
10% |
3,300,000 |
6,950,000 |
20% |
6,950,000 |
9,000,000 |
23% |
9,000,000 |
18,000,000 |
33% |
18,000,000 |
40,000,000 |
40% |
40,000,000 |
+ |
45% |
The tax is calculated based on a sliding scale by calculating the income based on its corresponding tax rate.
For example, if your net income is 6,500,000, then the income tax is calculated as follows:
For example, if your net income is 6,500,000, then the income tax is calculated as follows:
1,950,000 @ 5% tax rate = 97,500 (1,950,000 calculated as: 1,950,000 - 0)
1,350,000 @ 10% tax rate = 135,000 (1,350,000 calculated as: 3,300,000 - 1,950,000)
3,200,000 @ 20% tax rate = 640,000 (3,200,000 calculated as follows: 6,500,000 - 3,200,000)
Total tax due: 872,500 (calculated as follows: 97,500 + 135,000 + 640,000)
All above figures are expressed in Japanese Yen.
References: https://www.nta.go.jp/taxes/shiraberu/taxanswer/shotoku/2260.htm
https://www.nta.go.jp/publication/pamph/koho/kurashi/html/01_1.htm
1,350,000 @ 10% tax rate = 135,000 (1,350,000 calculated as: 3,300,000 - 1,950,000)
3,200,000 @ 20% tax rate = 640,000 (3,200,000 calculated as follows: 6,500,000 - 3,200,000)
Total tax due: 872,500 (calculated as follows: 97,500 + 135,000 + 640,000)
All above figures are expressed in Japanese Yen.
References: https://www.nta.go.jp/taxes/shiraberu/taxanswer/shotoku/2260.htm
https://www.nta.go.jp/publication/pamph/koho/kurashi/html/01_1.htm