6.Taxes

Taxes

Everyone who lives in Japan must pay taxes regardless of citizenship.

For income tax, each individual is taxed for his/her income earned from January 1 to December 31 that is paid to the federal government.
For employees who earn salary or wages, their employers withhold income tax deducted from their monthly salaries per the law, and the employer will remit the taxes to the federal government on behalf of the employees.
The income tax will be settled if their employer conducts “Year-end Tax Adjustments” for these persons.
However, employees whose year-end tax adjustment is not being conducted and business owners must file their own final income tax return to the Tax Office from February 16 to March 15 of the following year.

Persons who have registered addresses in Japan as of January 1 must pay the Residential Tax.
The Residential Tax is based on the income earned from the previous year, so there will be no notice for tax payment in the year that you have arrived in Japan.
Instead, you will receive the notice of payment for residential tax the following year.
If you are a salaried employee, then the Residential Tax will be withheld from your salary each month from June until May of the following year.
For all others, please pay by the payment slip that is sent to you by the city hall.

★Caution★
If you are subject to resident tax and are leaving the country, you must pay the remaining tax amount before leaving.

People who own a light motor vehicle, moped, or a small motorcycle as of April 1 will be taxed.

People who own land, houses/buildings, or depreciable assets (Business Assets) as of January 1 will be taxed.

Residential/Prefectural Tax (Under Ordinary Collection), Light Motor Vehicle Tax, Property Tax/City Planning Tax and National Health Insurance Tax can be paid by cash, bank account transfer, credit card payments and smartphone payment app.