Tax & Filing
しょとく所得ぜい税
Income Tax
Definition
Income Tax is a national tax levied on individual income over the course of a year. Progressive tax rates range from 5% to 45%. For salaried employees, the withholding system (源泉徴収) deducts tax from monthly salary. Self-employed individuals and freelancers must file an annual return (確定申告). Calculation methods differ by income type (employment income, business income, real estate income, etc.).
Examples
所得税は累進課税のため、所得が高いほど税率が上がります。
Because income tax (所得税) is progressive, higher income means a higher tax rate.