10 Income Categories
Japanese income tax law classifies income into 10 categories. The taxation method (comprehensive or separate) varies by type.[10]
ComprehensiveSeparateEither
Income under comprehensive taxation is combined and taxed at progressive rates (5%-45%). Separately taxed income is taxed individually at its own fixed rate, not combined with other income.[11]
Common Income Scenarios
How common work arrangements — freelancing, side hustles, working for foreign employers — are classified under Japan's income categories.[35][36][37]
Progressive Tax Rates & Calculation
Progressive Tax Rate Table
[11]5%~¥194.9万
10%~¥329.9万
20%~¥694.9万
23%~¥899.9万
33%~¥1.7999千万
40%~¥3.9999千万
45%¥4千万~
| Taxable Income | Rate | Quick Deduction |
|---|---|---|
| ¥1,000 ~ ¥1,949,000 | 5% | ¥0 |
| ¥1,950,000 ~ ¥3,299,000 | 10% | ¥97,500 |
| ¥3,300,000 ~ ¥6,949,000 | 20% | ¥427,500 |
| ¥6,950,000 ~ ¥8,999,000 | 23% | ¥636,000 |
| ¥9,000,000 ~ ¥17,999,000 | 33% | ¥1,536,000 |
| ¥18,000,000 ~ ¥39,999,000 | 40% | ¥2,796,000 |
| ¥40,000,000 ~ | 45% | ¥4,796,000 |
* An additional 2.1% reconstruction special income tax applies through 2037. Formula: Tax = Taxable income × Rate − Quick deduction