- November 5, 2025
- BELONGING JAPAN
The residence tax in Japan is a type of local tax levied on individuals who live and earn income in Japan. It plays a crucial role in supporting municipal and prefectural governments, funding essential public services such as education, childcare, welfare, fire safety, and waste management.
If you live in Japan and earn income above a certain threshold, you are required to pay this tax — regardless of nationality. This means that foreign residents are also subject to residence tax under the same conditions as Japanese citizens.
This guide provides a complete overview of residence tax in Japan, explaining how it works, who needs to pay, how it is calculated, and what to know when moving or leaving the country.
Each section has been reviewed and supervised by Certified Financial Planner® Yukako Yamazaki, ensuring that the information is accurate, practical, and up-to-date.
Profile of Author
Yukako Yamazaki
Representative of FP Office MIRAI;
Experienced as a Registered Customs Specialist, a bank teller, and transitioned to the path of a financial planner. Founded the financial planning office “FP Office MIRAI” in 2022.
With the motto “Changing the future through reviewing the household budget,” actively engages in household budget consultations, financial article writing, and book supervision, etc.
1st grade Certified Skilled Professional of Financial Planning, Certified Financial Planner®.
Table of Contents
Chapter 1: Chapter 1: What Is Residence Tax in Japan?
The residence tax in Japan (住民税, jūminzei) is a local tax imposed on individuals who earn income within Japan. It plays a central role in supporting local public services, including education, childcare, welfare, and waste management.
This tax is composed of two parts: the prefectural tax and the municipal tax. Both are paid together to the municipality (city, ward, or town) where you reside as of January 1st each year.
Who Pays Residence Tax in Japan?
Anyone who has a registered address in Japan on January 1st and earned income during the previous year is required to pay residence tax.
This applies to both Japanese citizens and foreign residents. Even if your income is from part-time or freelance work, you are subject to residence tax once your annual income exceeds a certain threshold set by your local government.
The Difference Between Income Tax and Residence Tax
While both are taxes on income, income tax and residence tax are calculated and collected differently.
Income tax is a national tax based on a progressive system, meaning the more you earn, the higher your tax rate. Japan’s income tax has seven tax brackets:
5%, 10%, 20%, 23%, 33%, 40%, and 45%.Residence tax, on the other hand, is a local tax with a flat rate of 10%, regardless of income level. This rate is typically divided into 6% municipal tax and 4% prefectural tax.
In short, income tax is paid to the national government, while residence tax is paid to your local government.
Do Foreigners Pay Residence Tax?
Yes. Foreign residents in Japan who have a registered address on January 1st and earned income in the previous year must pay residence tax.
Failure to pay residence tax may lead to serious consequences, such as difficulty renewing your visa or obtaining a tax clearance certificate (nozei shomeisho).
If you leave Japan after January 2nd, you are still required to pay residence tax for that year.
Which Foreign Residents Are Required to Pay Residence Tax?
Foreigners who meet the following conditions must pay residence tax in Japan:
You have lived in Japan for more than one year, or
You plan to stay in Japan for more than one year as of January 1st.
If you live outside Japan and do not maintain a base of living or residence in the country, you are not required to pay residence tax.
Chapter 2: How to Calculate Residence Tax in Japan
The residence tax in Japan is calculated based on your income from the previous year. This means the tax you pay in 2025 is determined by the income you earned in 2024.
The calculation follows several steps to determine how much you owe to your local municipality.
Step 1: Calculate Taxable Income
Start with your total income from the previous year, then subtract allowable income deductions.
Formula:
Income amount – Income deductions (¹) = Taxable income
Income deductions are specific amounts that can be subtracted from your income before calculating your tax.
These deductions typically include:
Basic deduction (applicable to all taxpayers)
Spousal deduction (if applicable)
Dependent deduction
Life insurance premium deduction
Medical expense deduction
These deductions help lower your taxable income, reducing the amount of residence tax you need to pay.
Step 2: Calculate Income-Based Tax
Once your taxable income is determined, multiply it by the flat residence tax rate of 10%.
This amount represents the income-based portion of your residence tax.
Formula:
Taxable income × 10% – Tax credits (²) = Income-based tax
Step 3: Add the Per Capita Tax
The final residence tax in Japan consists of two parts:
Income-based tax – determined by your previous year’s income
Per capita tax – a fixed amount charged equally to all residents
Formula:
Income-based tax + Per capita tax = Total residence tax
Notes on Deductions and Tax Credits
¹ Income deductions reduce your taxable income. Common deductions include personal and family-related deductions, as well as itemized deductions for insurance premiums, medical costs, and other approved expenses.
² Tax credits reduce the actual amount of tax you owe after calculation. These may include credits for:
Housing loans (home mortgage deductions)
Furusato Nozei (hometown tax donations)
Other approved credits granted by your municipality
Key Takeaway
To summarize, the residence tax in Japan is calculated using this structure:
(Income – Deductions) × 10% – Credits + Per Capita Tax = Total Residence Tax
Understanding each step helps ensure accurate tax payments and allows residents to take advantage of all possible deductions and credits.
Chapter 3: Income-Based Tax and Per Capita Tax
Residence tax includes two parts: income-based tax and per capita tax.
The income-based tax charges a flat 10% on your taxable income. If two people have the same deductions, the one with higher income pays more.
The per capita tax stays the same for everyone. It doesn’t change based on how much you earn.
Check the table below for more details.
| Income-Based Tax | Standard Rates |
|---|---|
|
Municipal tax |
6% |
|
Prefectural tax |
4% |
If you live in a designated city, the rates change to:
Municipal tax: 8%
Prefectural tax: 2%
| Income-Based Tax | Standard Annual Amount |
|---|---|
|
Municipal tax |
¥3,000 |
|
Prefectural tax |
¥1,000 |
|
Forest Environment Tax |
¥1,000 |
Chapter 4: Residence Tax Notification and Payment Methods in Japan
In Japan, residence tax (jūminzei / 住民税) is based on your income from the previous calendar year (January 1 to December 31). After your year-end tax adjustment or final tax return (kakutei shinkoku / 確定申告) is completed, the local government calculates your final residence tax amount.
Around June each year, you will receive a residence tax notice (納税通知書 / nōzei tsūchisho) from your city or ward office, showing how much tax you owe and how to pay it.
How to Pay Residence Tax in Japan
You can pay your residence tax using one of two methods:
1. Special Collection (Payroll Deduction / 特別徴収)
If you are employed by a company, your employer automatically deducts residence tax from your monthly salary and sends it directly to your local municipality.
You don’t need to take any additional action — the payment is handled for you.
2. Ordinary Collection (Self-Payment / 普通徴収)
If you are self-employed, a freelancer, unemployed, or retired but earned taxable income in the previous year, you must pay the residence tax yourself.
Your municipality will send you a payment notice in June, which includes detailed instructions and payment slips. Be sure to pay by the due date to avoid penalties or late fees.
Payment Options
You can pay your residence tax conveniently through any of the following methods:
Banks and ATMs
Convenience stores (konbini)
Internet banking
Credit card payment (available in many municipalities)
Check your local city or ward office website for available online payment options and accepted platforms (such as Pay-easy, PayPay, or credit card portals).
Chapter 5: Important Points When Moving or Returning to Your Home Country
Residence tax works on a pay-later system.
So, even if you move or quit your job, you still must pay it. Pay special attention in these cases:
Quitting Your Job
You can ask your company to deduct the remaining residence tax from your salary or retirement pay. This option is simple and efficient. Alternatively, you can choose ordinary collection and pay the remaining tax yourself.
If you resign between January and May, the company will automatically deduct and pay the tax, regardless of your request.Returning to Your Home Country (Leaving Japan)
If you leave Japan in the middle of the year, you still must pay residence tax. Since the tax applies to the previous year’s income, you need to pay the unpaid tax before you leave Japan.
If you can’t pay in full, select a tax representative in Japan to handle the payment for you. Notify your local municipality about this.
Note that a business owner can also serve as a tax representative.
If you leave Japan without paying your tax or selecting a tax representative, reentering Japan could become difficult. Make sure to pay your taxes before returning to your home country.
Chapter 6: Frequently Asked Questions
As a Certified Financial Planner, here are some of the most common questions I’m often asked about residence tax (住民税 / jūminzei) in Japan.
Q1. Do students have to pay residence tax?
Students must pay residence tax if their income, such as from part-time work, exceeds a certain amount.
If you apply the working student deduction, and your income for 2024 is 1.24 million yen or less, you won’t have to pay residence tax for the current year (from June 2025 to May 2026). In the following year, if your income for 2025 is 1.34 million yen or less, you won’t have to pay residence tax for the next year (from June 2026 to May 2027) due to tax system changes in 2025.
Q2. What happens if I forget to pay?
If your company deducts the tax from your salary, you won’t have to worry about forgetting to pay. However, if you are self-employed, a freelancer, or have switched to ordinary collection after leaving your job, you must pay attention. Here’s what could happen if you fail to pay residence tax:
You will receive a reminder from the tax office.
You may get a notice via phone or mail.
The authorities may investigate your property.
They may seize your assets.
If you miss the payment deadline, you’ll have to pay a late fee, which will add to the original tax amount. Be careful not to forget to pay your residence tax.
Q3. Is there a support desk in English?
The Ministry of Internal Affairs and Communications website offers explanations about residence tax in English and other languages.
Feel free to use it as needed.
Chapter 7: Summary
Foreign residents must also pay resident tax under the same rules as Japanese citizens. Resident tax is a post-paid tax based on the previous year’s income. Even if you move or leave Japan after January 2, you still need to pay it.
Make sure you understand how resident tax works so you don’t miss any payments.
*This article is for general informational purposes only and does not constitute individual financial, tax, or legal advice. Although it has been reviewed by a Certified Financial Planner, readers should consult official government sources, licensed financial advisors, or tax professionals for personalized guidance.
Belonging JAPAN is not affiliated with or endorsed by any financial institution, government agency, or service mentioned. Information such as procedures, rates, and regulations is accurate as of October 2025, but may change without notice. Please verify details with official sources before taking any action.
