The Japan Navigator

Why Your Employer Handles Your Taxes in Japan (Until They Don’t) One of the most reassuring things for new employees in Japan is being told that their employer “handles taxes for them.” In many cases, this is true — but only within clearly defined limits. When those limits are crossed, responsibility quietly shifts back to the individual, often without much explanation. This article explains how employer-handled taxes work in Japan , what is actually covered, and when you are suddenly expected to take over. The Basic Idea: Withholding at the Source For most full-time employees in Japan, income tax is withheld directly from salary. This system is known as withholding at the source , and it means: Your employer deducts income tax from each paycheck You receive your salary after tax You usually do not file a tax return yourself This setup creates the impression that taxes are fully “taken care of.” The Year-End Adjustment (年末調整) The key mechanism that m...

Why Japan Still Uses Paper Bills and Mail for Everything One of the first surprises for many newcomers to Japan is how much important information still arrives by post. Utility bills, city hall notices, pension statements, insurance updates — even in a highly advanced country, physical mail remains central to daily administration. This often feels outdated, inefficient, or unnecessarily stressful. In reality, Japan’s reliance on paper mail follows a clear internal logic. This article explains why paper is still dominant , what it signals, and how to approach it without anxiety. The Expectation Gap for Newcomers Many people arrive in Japan expecting: Digital billing by default Email notifications for official matters Online portals replacing paper Instead, they find their mailbox filling up with envelopes — often formal, sometimes alarming, and rarely explained. The disconnect is not about technological ability. It is about how trust, responsibility, and pr...

Why Japanese Utility Bills Rarely Match Your Usage Period One of the most common points of confusion for newcomers to Japan is utility billing. You check your electricity or gas bill and notice something strange: the dates don’t match the period you think you used the service. Sometimes the bill arrives weeks later. Sometimes the amount feels disconnected from how much you remember using. This article explains why Japanese utility bills often feel “out of sync” , how the system actually works, and why this confusion is especially common in your first year. The Expectation vs Reality Problem Many people arrive in Japan expecting utilities to work like they do elsewhere: You use electricity or gas during a given month You receive a bill shortly after The bill clearly reflects that usage period In Japan, billing follows a different logic. The issue is not that the system is inaccurate — it is that it prioritises administrative cycles over real-time usage . ...

Guarantor vs Guarantor Company in Japan: What’s the Difference? If you have ever searched for an apartment in Japan, you have almost certainly encountered the word guarantor . For many foreign residents, this requirement is confusing and often becomes the biggest obstacle to renting — especially in cities like Tokyo. This article explains the difference between a personal guarantor and a guarantor company , how each works in practice, what they cost, and why most landlords now prefer guarantor companies. What Is a Guarantor in Japan? In Japan, a guarantor (連帯保証人) is someone who legally agrees to take responsibility if the tenant fails to pay rent or causes damage. This is not a symbolic role. A guarantor is: Legally responsible for unpaid rent Potentially liable for damages Contacted directly if problems arise Because of this liability, being a guarantor is a serious commitment. Personal Guarantor: How It Works A personal guarantor is usually: ...

Why a Kotatsu Can Save You Money in Japan (Especially in Your First Winter) When people ask how much money they should save before moving to Japan, heating costs are rarely part of the discussion. Yet for many newcomers, winter electricity bills are one of the first unexpected expenses. Japanese apartments are often poorly insulated, and heating an entire room can become expensive very quickly. This is why many households rely on a uniquely Japanese solution: the kotatsu . A kotatsu is not just a cultural item. It is one of the most cost-effective ways to stay warm in Japan — especially during your first winter. Why Heating Costs Surprise Newcomers in Japan Many people moving to Japan assume winter heating will be manageable. In practice, several factors make it harder than expected: Thin walls and weak insulation in many apartments High ceilings that trap cold air Electric heaters and air conditioners consuming significant power Long evenings spent at home ...

How Much Money Should You Save Before Moving to Japan? One of the most common questions people ask before moving to Japan is simple, but stressful: how much money do I actually need? Online answers range from wildly optimistic to unnecessarily alarming. The reality depends on your situation — but there are realistic minimums, and there are common mistakes that leave people financially exposed in their first months. This article explains how much money you should save before moving to Japan, based on real costs, timing gaps, and what newcomers consistently underestimate. Why Your First Months in Japan Cost More Than You Expect Even if you already have a job lined up, Japan has a timing problem that affects cash flow. Common reasons: Your first salary is often paid 4–6 weeks after you start working Initial housing costs are front-loaded Administrative costs arrive early Nothing feels “monthly” at the beginning This means you need a buffer — not just eno...

Admin Fatigue in Japan: Why Everything Feels Complicated (And How Locals Cope) At some point, many foreign residents in Japan hit a wall. It is not culture shock, language barriers, or even work — it is administration. Forms, stamps, counters, deadlines, repeated explanations. Individually, each task is manageable. Together, they can feel overwhelming. This feeling has a name many people recognize instinctively: admin fatigue . This article explains why administrative procedures in Japan feel so exhausting, even when things technically work well — and how Japanese people themselves cope with it. It’s Not That the System Is Broken One important point to understand is this: Japanese administration is not chaotic or inefficient in the usual sense. Most procedures are: Rule-based Predictable Designed to avoid ambiguity The problem is not disorder. The problem is density . Why Admin in Japan Feels So Heavy Everything Is a Separate Process In Japan, task...

Practical New Year Tips in Japan (Plus the Traditions You’ll See Everywhere) New Year (お正月 / Oshōgatsu) is the most important holiday period in Japan. While Christmas passes quickly, New Year affects daily life in very real, practical ways — especially if you are not expecting it. This article covers what to prepare for New Year in Japan , what typically closes, and the main traditions you will see Japanese people observing between December 31 and January 3 — including why some shrines become extremely crowded, even overnight. Many Things Close — More Than You Expect Unlike Christmas, New Year in Japan comes with real shutdowns. Common closures include: Banks and government offices Clinics and small medical practices Real estate agencies and moving services Smaller restaurants and local shops Large convenience stores remain open, but overall activity slows down significantly. Prepare Cash in Advance ATMs at convenience stores usually work, but bank ...

Christmas in Japan: What It’s Really Like (And What Surprises Foreigners) Christmas in Japan looks familiar at first glance — lights, trees, music, cakes — but the meaning behind it is very different from what most foreigners expect. This article explains what Christmas in Japan is actually about, what usually surprises newcomers, and how locals really experience it. Christmas Is Not a Public Holiday The first surprise for many foreign residents is simple: December 25 is a normal working day . Schools, offices, banks, and government services all operate as usual. There is no nationwide holiday, and no expectation that people take time off. In Japan, Christmas is treated as an event , not a holiday. Christmas Is for Couples, Not Families Unlike in many Western countries, Christmas in Japan is primarily seen as a romantic occasion . It is commonly associated with: Dinner dates Exchanging gifts between couples Hotel stays or special restaurant reservatio...

Being Self-Employed in Japan: Hidden Costs No One Warns You About Being self-employed in Japan often looks attractive on paper: flexibility, autonomy, and higher gross income potential. In reality, many freelancers and solo business owners underestimate the hidden costs that only appear after the first year. This article explains the main financial blind spots for self-employed residents in Japan — especially foreigners — and why cash flow often feels tighter than expected even when income is decent. The First-Year Illusion Many self-employed people feel financially comfortable in their first year. This is usually temporary. Common reasons: No residence tax yet Low National Health Insurance premiums Limited pension contributions in the prior year In year two, all of these costs arrive at once. National Health Insurance Is Income-Based — and Expensive Self-employed residents are enrolled in National Health Insurance (Kokumin Kenkō Hoken) , which is man...

National Pension vs Employee Pension in Japan (What You Actually Get) Japan’s pension system is often described as simple, but in practice it is widely misunderstood — especially by foreign residents. Many people contribute for years without a clear idea of what they will actually receive in retirement. This article explains the difference between National Pension (Kokumin Nenkin) and Employee Pension (Kōsei Nenkin) , how payouts are calculated, and what you can realistically expect based on income and years of contribution. The Two-Tier Pension System in Japan Japan’s public pension system has two main layers: National Pension (Kokumin Nenkin) – the base pension for all residents Employee Pension (Kōsei Nenkin) – an additional earnings-based pension for employees Which pension you contribute to depends entirely on your employment status. National Pension (Kokumin Nenkin) National Pension applies if you are: Self-employed or freelance Unemployed ...

How Japanese Health Insurance Premiums Are Calculated (With Real Salary Examples) If you live and work in Japan, health insurance costs can feel confusing and unpredictable. Premiums often change, sometimes sharply, and frequently do not match your current salary. This is not an error — it is how the Japanese system is designed. This article explains how Japanese health insurance premiums are actually calculated , why many foreign residents are surprised by higher bills in their second year, and how costs differ depending on whether you are an employee or self-employed. Realistic salary examples are included to help you estimate your own situation. The Two Health Insurance Systems in Japan Japan has two main public health insurance systems. Which one you are enrolled in determines how your premiums are calculated. Employee Health Insurance (Shakai Hoken) This applies if you are a full-time employee — or a qualifying part-time employee — at a company. You are enroll...

Fire Insurance (火災保険) in Japan: What It Actually Covers vs. What Most People Think It Covers If you rent an apartment in Japan, you will almost always be required to purchase 火災保険 (kasai hoken) — “fire insurance.” Despite the name, it covers far more than just fire damage, and misunderstanding this insurance is one of the most common issues for foreign residents. This guide explains what fire insurance really covers , what it does not cover , how claims work, and why it is required for nearly all rental contracts in Japan. What Fire Insurance (火災保険) Actually Covers Fire insurance for renters is designed to protect both you and the landlord from unexpected damage. Although the name sounds limited, the scope is actually much broader. Typical Japanese fire insurance policies cover: Fire damage — accidental fires inside your unit Water damage — leaks from air conditioners, pipes, washing machines Typhoon and storm damage — wind, rain, falling objects ...

Renewal Fees (更新料) in Japan — Why They Exist, When You Must Pay Them, and How to Avoid Them If you rent an apartment in Japan, you may eventually encounter a charge called 更新料 (kōshinryō) , meaning “renewal fee.” This fee surprises many foreigners because it is rare outside Japan, and it is not well explained by most resources. So what is this fee, why does it exist, and do you really have to pay it? What Renewal Fees (更新料) Are 更新料 is a payment tenants make to continue using the rental property after their initial contract period (usually two years). Most commonly: The renewal fee applies every 2 years The fee amount is typically 1 month of rent It is paid directly to the landlord or property owner It is not refunded It does not cover maintenance, repairs, insurance, or cleaning — it is simply a continuation fee to renew the contract. Why Japan Has Renewal Fees (And Why They Surprise Foreigners) In many countries, rental contracts are either mon...

Key Money (礼金) in Japan: How It Really Works For many foreigners, key money (礼金 / reikin) is one of the most confusing parts of renting in Japan. It is a large upfront payment to the landlord, and unlike a deposit, it is usually never returned. This guide explains why key money exists, how it works in practice, and when you can avoid it, with a focus on the current rental market in Tokyo. What Key Money Is – And What It Is Not When you look at Japanese rental listings, you will often see 礼金 listed together with other initial costs. Key money (礼金) is: A one-time payment to the landlord at the start of the lease Non-refundable in almost all cases A custom and market practice , not a legal requirement Typically equivalent to 1–2 months of rent Key money is not: A deposit (that is 敷金 / shikikin ) A broker fee (that is 仲介手数料 ) A cleaning or restoration charge It is important not to confuse 礼金 with 敷金. A deposit (敷金) may be partially returne...

How to Cancel or Change Your NHK Contract in Japan (Plus What the NHK “Tax” Actually Is) At some point, most people living in Japan encounter NHK. Usually, it happens when someone from NHK knocks on your door, shows an ID badge, and asks you to sign a form. Many foreigners understandably feel confused—“Is this mandatory? Why am I being charged? How do I cancel?” This guide explains what NHK actually is, why the “NHK tax” exists, and what to do if you want to change or cancel your contract in a simple, stress-free way. What Is NHK and Why Does It Charge Fees? NHK (日本放送協会) is Japan’s public broadcasting service. It operates TV and radio channels funded by viewing fees (受信料) rather than advertisements. The idea is similar to the BBC in the UK—residents pay to support public news and safety broadcasting. Because NHK broadcasts earthquake and emergency alerts, the government treats it as a public service. That’s why residents with a TV are expected to pay. Is It a “Tax”? Not...