Taxes

Those who work, live, or shop in Japan must pay taxes to the national government, prefecture, local municipality.

The collected taxes are used to provide goods and services for the benefit of people.

Income tax

Income tax is a tax that is paid to the national government.

Those who work and earn money pay income tax.

The tax amount is calculated based on how much money you earn in the year from January 1st to December 31st.

[How to pay income tax]

• Those who work for companies:
   Withholding:
  Your employer deducts tax from your salary each month and pays it to the national government on your behalf.
  This method of payment is called "gensen choshu (withholding)."
   Year-end tax adjustment:
  In December, your employer re-calculates taxes paid from January through November to know whether there was an overpay or underpay.  In case of an overpay, your employer will refund you by adding the amount to your December salary.

• Those who own businesses or work as freelancers:
   Income tax return:
    You will go to your local tax office to submit tax documents after calculating your business income and income tax.
  This is called a "kakutei shinkoku (Income tax return)".
  The income tax return must be filed between February 16th and March 15th of the following year.
  You can pay your tax at the bank, post office, convenience store, tax office, etc

Ask your local tax office if you have any questions about income tax.

National Tax Agency: Tax office in Tokyo (Japanese)

There is a phone number that you can talk in English with the Tokyo Regional National Tax Agency.

National Tax Agency:　If you need further information, please contact (English)

Resident tax

Resident tax is a tax that is paid to your prefecture and municipality.

Those who have an address in Japan on January 1st and earn pay the resident tax.

The amount of tax depends on how much was earned between January 1st and December 31st of the previous year.

[How to pay resident tax]

• Those who work for companies:
   Special collection:
  Your employer deducts taxes from your salary every month and pays your local governments on your behalf.
  This payment method is called "special collection (tokubetsu choshu)."

• Those who own businesses or work as freelancers:
   Ordinary collection:
  Every year in June, you will receive a letter called "Tax payment notice" from the municipal office where you live.
  The tax payment notice describes how much tax you must pay and by when.
  Taxes can be paid at the bank, post office, convenience store, municipal office, etc.
  This method of payment is called "ordinary collection (futsu choshu)".

Ask your local municipal office or tax office if you have any questions about the resident tax.

Consumption tax

Consumption tax is a tax on the purchase of a good or service and is paid to the store along with payment for a good or service you received.

The withheld consumption tax by the store is paid to the national government on your behalf.

Consumption tax is 10% of the purchasing goods and services.

It is 8% for take-out foods and drinks (excluding alcoholic beverages.)

Other taxes

Here are some other major taxes.

[Taxes on automobile]

• Automobile tax based on environmental performance/Light motor vehicle tax based on environmental performance:

   This tax is imposed at the purchase of a car.

• Automobile tax based on category /Light motor vehicle tax based on category:

    This tax is imposed to the owner of the vehicle on April 1st every year.

• Motor vehicle weight tax:

   The tax amount is determined by the weight of the vehicle.

   This tax is imposed at the time of a "car inspection" to check whether the car can be driven safely.

[Taxes on land and house]

• Real Estate Acquisition Tax:

   This tax is imposed at the purchase of land and/or a house.

• Property tax:

   This tax is imposed to the owner of the land and house on January 1st every year.