Resident Tax in Japan: How Much You Pay and When

By Admin

Life in Japan / Taxes

Resident tax (住民税 / jūminzei) is one of the most confusing taxes for foreigners in Japan. Many people believe they are “done with taxes” after the year-end tax adjustment, only to receive an unexpected bill months later from their city office.

This article explains how resident tax works, how much you pay, when you pay it, and why so many foreigners are caught off guard—using realistic, anonymized cases based on common situations.

What Is Resident Tax in Japan?

Resident tax is a local tax paid to:

Your city, ward, or town
Your prefecture

It funds local services such as schools, waste management, and infrastructure.

Unlike income tax:

It is not settled at year-end
It is billed the following year
It is based on last year’s income

Who Has to Pay Resident Tax?

You must pay resident tax if:

You lived in Japan on January 1
You earned taxable income in the previous year

This applies regardless of:

Nationality
Visa type
Length of stay (as long as you were resident on Jan 1)

Anonymized Example

A foreign engineer arrived in Japan in April 2024 and worked for the rest of the year. In June 2025, he received a resident tax bill—even though he had never paid it before and assumed taxes were already handled.

How Much Is Resident Tax?

Resident tax is generally about 10% of your taxable income, plus a small flat fee.

Typical Breakdown

Prefectural tax: ~4%
Municipal tax: ~6%
Flat fee: ¥5,000–¥6,000 per year (varies by city)

Rough Estimate

If your annual taxable income is:

¥3,000,000 → Resident tax ≈ ¥300,000/year
¥4,000,000 → Resident tax ≈ ¥400,000/year

💡 Deductions (dependents, insurance, etc.) reduce the amount, just like income tax.

When Do You Pay Resident Tax?

Salary Workers (Most Common)

If your employer supports special collection (特別徴収):

Tax is deducted from salary
Paid monthly from June to May
No lump-sum bill

Most full-time employees fall into this category.

Self-Employed / Contract / Some Foreign Employees

If you are on ordinary collection (普通徴収):

You receive bills from your city
Usually split into 4 payments:
- June
- August
- October
- January

Missing payments can lead to reminders and penalties.

Why Foreigners Are Often Surprised

1. There Is a One-Year Delay

Resident tax in 2026 is based on income earned in 2025.

2. No Automatic Explanation

City offices send bills in Japanese with little context.

3. Job Changes Cause Confusion

Changing jobs can switch you from salary deduction to lump-sum billing.

Real Case (Anonymized)

A language school teacher changed employers in March. Her new company didn’t deduct resident tax. In June, she received a ¥280,000 bill and thought it was a mistake.

Resident Tax vs Income Tax (Quick Comparison)

Item	Income Tax	Resident Tax
Collected by	National government	Local government
Timing	Same year	Following year
Adjustment	Year-end adjustment	No year-end adjustment
Rate	Progressive	Mostly flat (~10%)

What Happens If You Leave Japan?

If you leave Japan:

You are still responsible for unpaid resident tax
You may need to:
- Pay in full before departure, or
- Appoint a tax representative (納税管理人)

Failure to settle resident tax can affect:

Future visa applications
Re-entry credibility

Common Mistakes Foreigners Make

Assuming resident tax is included in income tax
Spending refunds without budgeting for June bills
Ignoring city mail
Not informing city hall when changing jobs
Leaving Japan without settling tax

How to Reduce Resident Tax Legally

Declare dependents correctly
Submit insurance deductions
Use hometown tax donation (ふるさと納税) strategically
File a tax return if adjustments were missed

Final Thoughts

Resident tax is not a penalty—it’s a delayed local tax that everyone living in Japan must pay. Once you understand the timing and amount, it becomes predictable and manageable.

The key is simple:
If you earned income last year and lived in Japan on January 1, expect resident tax in June.

Tools you can use for check:

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• 𝗙𝗮𝗰𝗲𝗯𝗼𝗼𝗸: https://www.facebook.com/gaijinblogs
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