Japan Tax Guide
In 2026, the headline personal income tax rate in Japan is 45.945% and the corporate tax rate is 24.128%. Checked against official guidance on 8 November 2026.
- Personal income
- 45.945%45% top national rate plus the 2.1% reconstruction surtax on the tax · 10% inhabitant tax on top, set locally
- Corporate
- 24.128%23.2% plus the 4% defence special corporate tax on tax above JPY 5M, business years from 1 April 2026 · 23.2% before it · 15% (up to JPY 8M for SMEs)
At a glance
| Personal income tax (headline rate) | 45.945%45% top national rate plus the 2.1% reconstruction surtax on the tax · 10% inhabitant tax on top, set locally |
|---|---|
| Corporate tax | 24.128%23.2% plus the 4% defence special corporate tax on tax above JPY 5M, business years from 1 April 2026 · 23.2% before it · 15% (up to JPY 8M for SMEs) |
| Capital gains | Unlock with Signal |
| Crypto tax | Unlock with Signal |
| Dividend tax | Unlock with Signal |
| Rental income tax | Unlock with Signal |
| Residency threshold (days) | Unlock with Signal |
| Special tax regime | No |
Source: official guidance· last verified 8 Nov 2026
Informational only. Not tax or financial advice. Verify with a qualified professional before you act.
Japan residency rule
Japan residency is determined by a combination of physical presence and personal ties: day count, habitual abode, centre of vital interests, and treaty tie-breakers. Heed tracks the full rule and counts the days for you.
Signal ($99 a year) unlocks the full residency rule.
Unlock with SignalRecent changes in Japan
Regulatory stabilityVolatile36 rule changes in 24 months, frequently revised; plan with caution. See how Japan ranks.
- Exemption · 1 Jan 2028
Japan enacts biennial CPI-linked reviews of income-tax basic and minimum salary-income deductions from 2028 income
The FY2026 tax reform law establishes a two-year review, using the national CPI change over the preceding two years as the benchmark, for the individual income-tax basic deduction and the minimum salary-income deduction. It applies to income from 2028 onward, not 2030.
- Rate change · 1 Jan 2027
Japan raises its additional tax on ultra-high incomes to 30% above JPY 165 million from 2027
The FY2026 tax reform law, enacted on 31 March 2026, cuts the special deduction used to compute the additional tax on very high incomes from JPY 330 million to JPY 165 million and raises its rate from 22.5% to 30%. The base adds together salary and business income, gains on shares and on land and buildings, and other income. It applies from 2027 income tax.
- Immigration · 1 Jul 2026
Revision of Japanese Visa Issuance Fees
Japan has revised its visa issuance fees for all categories including single and multiple-entry visas effective July 1, 2026.
Move, incorporate, and bank in Japan
Japan on Heed isn't just a tax profile. Heed also lists residency programmes and company structures with their official sources, and the banking providers it is still verifying.
A first look. Matching these programmes and structures to your own situation is on Pro; banking opens when Financial Navigator launches.View Pro
What Heed tracks in Japan
Legislative changes
Confirmed changes to Japan tax law, each checked against its official source.
Residency thresholds
Day counts against Japan residency rules, with proactive warnings.
Regime updates
Special regimes and rule changes for Japan residents, where an official source publishes them.
Japan tax, common questions
Is Japan a tax haven?
Japan is not generally classified as a tax haven, though specific regimes and bilateral treaties may still create planning opportunities. Heed tracks the rules of Japan across multiple jurisdictions so you can compare in context.
What is the income tax rate in Japan?
The headline personal income tax rate in Japan is 45.945% (45% top national rate plus the 2.1% reconstruction surtax on the tax) · 10% inhabitant tax on top, set locally. Effective rates vary by income level, residency status, and applicable regime. Heed keeps the rate alongside the legislative changes that move it.
Does Japan tax cryptocurrency?
Crypto taxation in Japan varies by holding period, activity type, and residency. Heed maintains the current rate and surfaces a change when we publish it, verified against its official source. The headline rate is available inside the Heed dashboard on Signal and above.
How long do I need to stay in Japan to become tax resident?
Tax residency in Japan is determined by a combination of physical presence and personal ties: day count, habitual abode, centre of vital interests, and treaty tie-breakers. Heed counts the days for you and warns before you cross. The full residency rule, including the day threshold and rolling window, is available on Signal and above.
Does Japan have a digital nomad visa or special regime?
Visa and regime options in Japan change. Heed records confirmed changes, each with its official source, and matches them to your profile.
How does Japan compare with other Asia-Pacific jurisdictions?
Heed's Tax Rankings compare Japan with other Asia-Pacific jurisdictions on employment, capital gains, dividend, crypto, rental and corporate tax. The full table is inside the app, from Signal up.
Compare Japan with...
Where Japan stands: the lowest tax countries and the highest.
How Heed tracks Japan
Japan surfaces across three Heed tools: every legislative change matched to your profile, every threshold counted, every rate compared.
See Japan's full tax profile.
Track Japan on your Heed dashboard. Signal ($99 a year) unlocks the full rate set including capital gains, dividend, crypto, rental, and the complete residency rule.
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