How it works
This page turns your gross annual salary into tedori (take-home pay) for the 2026 tax year. It follows the rules of the National Tax Agency, Kyokai Kenpo and the Ministry of Health, Labour and Welfare, and shows each deduction on its own line.
Income tax
Taxable income = salary income - social insurance - basic deduction - spouse and dependant deductions
- Salary income = gross pay minus the employment income deduction. For 2026 the minimum deduction is 740,000 yen (up to 2.2 million yen of pay), then 30% + 80,000 yen, 20% + 440,000 yen and 10% + 1,100,000 yen, capped at 1,950,000 yen above 8.5 million yen.
- Basic deduction for 2026: 1,040,000 yen if total income is 4.89 million yen or less (about 6.65 million yen of salary), 670,000 yen up to 6.55 million yen, 620,000 yen up to 23.5 million yen, then phased out to zero above 25 million yen.
- Each dependant aged 16 or over with low income takes 380,000 yen; a spouse with low income takes 380,000 yen (less if your own income is above 9 million yen).
The tax is then charged at 5% / 10% / 20% / 23% / 33% / 40% / 45% on the bands up to 1.95 / 3.3 / 6.95 / 9 / 18 / 40 million yen, and a 2.1% reconstruction special income tax is added on top of the tax.
Social insurance and resident tax
- Health insurance: Kyokai Kenpo rate of your prefecture, 9.85% in Tokyo for fiscal 2026, split equally with the employer, on the standard monthly remuneration. Nursing care insurance adds 1.62% (also split) from age 40 to 64.
- Child and child-rearing support levy: 0.23% from April 2026 pay, split equally. This calculator annualises it for the full year.
- Employees' pension: 18.3%, so 9.15% for you, on the standard remuneration up to 650,000 yen a month.
- Employment insurance: 0.5% of pay for fiscal 2026.
- Resident tax: 10% of taxable income after the resident tax deductions, plus 5,000 yen per head.
Worked example
Annual gross 5,000,000 yen in Tokyo, under 40, no dependants. Salary income is 3,560,000 yen. Social insurance comes to 723,132 yen (pension 450,180, health 242,304, child support 5,652, employment 24,996). With the 1,040,000 yen basic deduction the taxable income is 1,796,000 yen, giving income tax of 91,600 yen including the reconstruction tax. Resident tax is 243,100 yen. The take-home pay is 3,942,168 yen a year, about 328,500 yen a month (78.8%).
What this calculator leaves out
It covers an employee at a company insured with Kyokai Kenpo with only salary income. It does not include commuting-cost rules, the special deductions for housing loans, furusato nozei, life insurance or medical expenses, the spouse special deduction for a spouse earning above the spouse-deduction limit, the specified-dependant deductions for ages 19 to 22, or the 2027 changes to the reconstruction tax. Company health insurance societies (kenpo) have their own rates.