Tax Rates in Japan

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It seems many have a false perception of tax rates in Japan. Everyone thinks that it's a flat 6 or 10%. But this is not true. The tax rate in Japan is on a progressive scale like most western countries. The reason most English teachers are only taxed 10% is because they are on the lower end of this progressive scale.

Whether you are on a WHV, work visa or other type of visa where work is permitted, then the tax rates are the same. It's all based on a sliding scale.

The following shows Japan individual income tax rates for 2005:

Income Tax Rates (Yen)

• 10%
  1 - 3,300,000
• 20% of base exceeding 3,300,000
  3,300,001 - 9,000,000
• 30% of base exceeding 9,000,000
  9,000,001 - 18,000,000
• 37% of base exceeding 18,000,000
  18,000,001 and over

More info on tax rates in Japan can be found at Japan Tax Laws Tax System Japan. - WorldWide-Tax.com