The Japan Navigator

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 ...

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 ...

How to File Taxes in Japan (2025 Guide for Foreign Residents) Whether you work full-time for in as a company employee or freelance independently, understanding Japan’s tax filing process is essential. While most employees’ taxes are handled automatically through payroll, others must file manually. This 2025 guide explains who needs to file, how to do it, and what happens if you leave Japan mid-year. 1) Who Needs to File a Tax Return (確定申告 / Kakutei Shinkoku) In Japan, income taxes are generally withheld from your salary each month, and your employer performs a year-end adjustment (年末調整 / nenmatsu chousei) . If that adjustment covers your total income, you usually don’t need to file anything. However, you must file a tax return if any of the following apply: You changed jobs during the year (two or more employers). You have freelance, rental, or investment income. You left Japan before December and didn’t receive year-end adjustment. You want to claim extra deduct...

How Health Insurance Works in Japan (2025 Guide for Foreign Residents) Japan’s healthcare system is widely respected for its accessibility and quality — and participation is mandatory for everyone who resides in the country. Whether you’re employed, self-employed, or studying, you must be enrolled in either Employee Health Insurance (Shakai Hoken) or National Health Insurance (Kokumin Kenko Hoken) . This guide explains how Japan’s health insurance works, how to register, and what to expect in terms of costs and coverage. 1) Types of Health Insurance in Japan Japan operates a universal health insurance system, meaning all residents must join one of the following: Employee Health Insurance (社会保険 / Shakai Hoken): For full-time employees. Enrollment is handled by your employer, and premiums are automatically deducted from your monthly salary. Employers cover roughly half of the total contribution. National Health Insurance (国民健康保険 / Kokumin Kenko Hoken...