How is take-home pay calculated in Japan?
Your take-home pay is your gross salary minus three main deductions: social insurance (health, pension, employment insurance — about 15% of gross), national income tax (progressive rates from 5% to 45% plus a 2.1% reconstruction surtax), and residence tax (about 10% of taxable income). Foreign workers pay the same rates as Japanese citizens.
What is residence tax and why is it ¥0 in year one?
Residence tax (住民税) is a local tax of about 10% based on your previous year's income. In your first year in Japan, you have no prior-year income here, so residence tax is typically ¥0. From your second year onward, you'll pay residence tax based on the income you earned the year before.
What social insurance do I pay?
As an employee, you pay roughly half of social insurance; your employer pays the other half. This includes: health insurance (~4.9%), employees' pension (~9.15%), employment insurance (0.5%), long-term care insurance (0.81%, only if age 40+), and from April 2026, a new child-rearing support levy (0.115%). These contributions fund healthcare, retirement pension, unemployment benefits, and childcare support.
How much of my salary can I save?
It depends on your lifestyle and city. In Tokyo, a single person might spend ¥150,000–¥200,000/month on rent, food, transport, and utilities. In regional cities, costs drop to ¥100,000–¥140,000/month. Use the savings estimator below to calculate your potential monthly and annual savings based on your take-home pay.
Is the exchange rate live?
Yes. We fetch the current JPY→INR rate from the European Central Bank via the Frankfurter API, updated every 6 hours. The rate shown at the bottom of the calculator indicates the source and date. Exchange rates fluctuate daily, so treat rupee amounts as estimates.
Are bonuses taxed differently in Japan?
Bonuses (賞与) are subject to the same income tax rates as regular salary. Social insurance is also deducted from bonuses, though calculated slightly differently. This calculator assumes your gross annual salary includes bonuses, which is how Japanese companies typically quote salaries.
Does this calculator apply to contractors or freelancers?
This calculator is designed for employees (正社員 or contract employees). Freelancers and sole proprietors in Japan have different tax obligations — they pay their own social insurance premiums in full and file annual tax returns. If you're self-employed, consult a tax professional for accurate estimates.