Income Tax, Resident Tax and Tax Returns in Japan for Foreign Residents (2026)

1

Income tax

Check withholding and year-end adjustment.

2

Resident tax

Check the municipality notice and payment route.

3

When you leave

Confirm remaining payments and required procedures.

A visual summary of this guide. Read the relevant sections below for conditions and exceptions.

Short answer: Employees in Japan pay income tax (所得税) through monthly withholding and an employer-run year-end adjustment (年末調整). Resident tax (住民税) is a separate local tax based on last year's income, so it usually firs

Short answer: Employees in Japan pay income tax (所得税) through monthly withholding and an employer-run year-end adjustment (年末調整). Resident tax (住民税) is a separate local tax based on last year's income, so it usually first appears in your second year. If you leave Japan, your resident tax does not disappear: it must be settled before you go or handled by a tax agent (納税管理人). The tax return deadline for 2026 income is March 15, 2027.

General information, not tax advice. For your case, ask your employer's payroll team, the tax office, or a 税理士.

This guide focuses on employees who are residents for Japanese income-tax purposes. Living in Japan or holding a residence card does not by itself settle your tax classification: residence, length of stay and other facts matter. Non-residents and people with overseas income may need different withholding and filing treatment. Ask the tax office which rules apply before using the deduction examples below.

Resident tax is charged based on where you live on January 1. The municipality where you have your address on that date assesses tax on the previous calendar year’s income, subject to the applicable exemptions.

Resident tax is charged based on where you live on January 1. The municipality where you have your address on that date assesses tax on the previous calendar year’s income, subject to the applicable exemptions.

1. Withheld by your employer (特別徴収). The amount is deducted from your pay.

1. Withheld by your employer (特別徴収). The amount is deducted from your pay.

2. Paid by yourself (普通徴収). You receive a payment slip and pay at a bank, convenience store or by transfer.

• If you quit between June and December and ask for it, your employer may deduct the remaining tax in one lump sum from your last pay or severance, if the pay is enough.

• If you quit between June and December and ask for it, your employer may deduct the remaining tax in one lump sum from your last pay or severance, if the pay is enough.

• If you quit between January and April, the same lump-sum deduction applies by rule.

• For January–April departures, the remaining salary/retirement payment through May 31 of that same year must cover the balance; if it does not, arrange another payment method with the municipality.

• If you move abroad, you are generally expected to appoint a tax agent (納税管理人) in Japan to handle your resident tax. Without one, you must have the city office approve that there is no collection problem.

• Leaving Japan does not erase resident tax based on the previous year's income.

According to the National Tax Agency (NTA):

According to the National Tax Agency (NTA):

• Late returns can bring extra charges (無申告加算税 and others).

• Refunds are paid to a bank account in your own name. Some internet-only banks cannot receive tax refunds, so check with your bank.

Who needs to file? NTA examples include annual salary over 20 million yen; one source of fully withheld salary plus more than 200,000 yen of other income (excluding salary/retirement income); or multiple salary sources where salary not year-end-adjusted plus such other income exceeds 200,000 yen, subject to a low-income exception. This is not a universal tax-free side-income allowance: a resident-tax declaration may still be needed, and other return-filing conditions exist.

The FY2026 tax reform raised several deductions that apply to income earned in 2026. Use the NTA’s official FY2026 guidance. The revised basic deduction applies to 2026 income but takes effect on December 1, 2026. An ear

The FY2026 tax reform raised several deductions that apply to income earned in 2026. Use the NTA’s official FY2026 guidance. The revised basic deduction applies to 2026 income but takes effect on December 1, 2026. An earlier departure return can use the old deduction; after December 1, correction procedures may be available.

For a person with only salary income, the dependant test moves from about 1.23 million yen to about 1.36 million yen of salary. Your employer's payroll team applies these in the year-end adjustment; ask them if your tax looks different.

Before departure: National income tax and municipal resident tax use separate procedures. Tell both offices your departure date; appointing a tax agent for one does not automatically complete the other.

1. Keep your annual 源泉徴収票 (withholding tax slip) from each employer.

1. Keep your annual 源泉徴収票 (withholding tax slip) from each employer.

2. Before you leave a job, ask how your resident tax will be paid.

3. Before you leave Japan, ask your city office about a tax agent and the lump-sum payment.

4. If you change jobs during the year, make sure the new employer does the year-end adjustment, or file a return.

Why is my take-home pay lower in my second year? Resident tax is based on last year's income and usually starts about a year after you begin earning in Japan. See our pay slip guide.

Why is my take-home pay lower in my second year? Resident tax is based on last year's income and usually starts about a year after you begin earning in Japan. See our pay slip guide.

Do students pay? It depends on income. This guide did not verify thresholds. Ask your city office.

Can I get a refund when I leave Japan? Possibly, through a refund return, and the pension may be refundable separately. See our guide on the pension lump-sum withdrawal.

• NTA, filing period for 2026 income (Japanese): Source: www.nta.go.jp

• NTA, filing period for 2026 income (Japanese): Source: www.nta.go.jp

• Ministry of Internal Affairs and Communications, resident tax for foreign residents (Japanese, includes a municipal case study): Source: www.soumu.go.jp

• NTA basic deduction and December 1 commencement: Source: www.nta.go.jp

• NTA employees who must file: Source: www.nta.go.jp

• Shinjuku resident tax: Source: www.city.shinjuku.lg.jp

• NTA employment-income deduction: Source: www.nta.go.jp

• NTA year-end adjustment 2026: Source: www.nta.go.jp

• Source: www.nta.go.jp