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Residence Tax in Japan Explained

Residence Tax in Japan (住民税) Explained Simply

Residence tax in Japan (住民税 / jūminzei) is one of the most misunderstood parts of the Japanese tax system. Unlike income tax, residence tax is based on your earnings from the previous year and is paid to your local city or ward office—not the national government.

If you are planning your yearly expenses, our guide on utilities and monthly bills in Japan can help you estimate your fixed monthly costs alongside residence tax.

What Is Residence Tax?

Residence tax is a local tax paid to the municipality where you lived on January 1 of the current year. Even if you move to a different city afterward, you pay tax to the city where you were registered on January 1.

The tax consists of two parts:

  • Per-capita tax (均等割): A fixed amount charged to all residents
  • Income-based tax (所得割): A percentage of your previous year’s income

How Residence Tax Is Calculated

Residence tax is calculated using your previous year’s income. For example:

If you earned money in 2024 → you pay residence tax in 2025.

  • Per-capita tax: usually around ¥5,000–¥6,000 per year
  • Income-based tax: approximately 10% of your taxable income after deductions

This means even if your income changes, your residence tax does not adjust until the following year.

Who Has to Pay Residence Tax?

You must pay residence tax if:

  • You lived in Japan on January 1
  • You earned income in the previous year (salary or freelance)

You do not owe residence tax if you arrived in Japan after January 1 and had no income during the previous year.

How Residence Tax Is Paid

There are two payment methods:

1. Special Collection (給与特別徴収)

This is automatic salary deduction handled by your employer. Your company pays your tax in 12 monthly installments from June to the following May.

2. Ordinary Collection (普通徴収)

You pay the tax yourself via payment slips sent by your city office. Payments are usually split into four installments (June, August, October, January).

If You Change Jobs

If you change employers mid-year, your new employer may not automatically continue the deductions. Expect one of the following:

  • Your new employer takes over the payments, or
  • You receive payment slips and must pay the remaining tax yourself

This is a very common situation for foreign workers, especially if the job change happens between July and December.

If You Leave Japan

If you leave Japan permanently, you must appoint a tax representative (納税管理人) or pay all remaining residence tax before departure.

Even if you leave the country, you still owe residence tax for the income you earned the previous year.

Official guidance: National Tax Agency

Example: How Much Do You Pay?

Here is a simple example for a typical salaried worker:

  • Previous year income: ¥4,500,000
  • Taxable income after deductions: ¥3,500,000
  • Income-based tax (10%): ¥350,000
  • Per-capita tax: ¥5,000–¥6,000

Total residence tax per year: roughly ¥355,000

Monthly deduction: about ¥29,000 from June to next May

Final Thoughts

Residence tax is predictable once you understand that it is always based on your previous year’s income. If you moved, changed jobs, or left Japan, the key point is that you still owe tax to the municipality where you lived on January 1. Managing your documents and knowing your taxable income makes it easy to estimate your payments.

If you're also reviewing your other legal procedures in Japan, see our guide on how to rent an apartment in Japan for practical administrative tips.

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