Resident Tax

[Question]How is your resident tax determined?

[Answer]

As long as you are a resident of the city as of January 1 of a given tax year, resident taxes, which consist of prefectural and municipal taxes, are levied irrespective of your nationality. If you are categorized as a non-resident, your income is essentially exempt when it comes to resident taxes, but you still have to pay per-capita portion of business operation or real estate in Japan, if any.

(Tax amount)  revised since fiscal 2007

Per-capita levy for Prefectual tax is 1000 yen, while municipal tax is between 2000 yen and 3000 yen, depending on the city you live in.
Per-income levy is calculated by multiplying taxable income of previous year by a factor of 10%
Taxable Income =Gross Income – (Salary deduction + Social Insurance Premium + spousal deduction + dependent deduction + basic deduction etc.)

(Tax Collection)  the municipal government collects both prefectural and municipal taxes 

Special collection method is applicable only to employment income earners whose resident taxes are deducted from their monthly salary during the period of June of the current year to May of the following year, and pensioners aged 65 or older whose resident taxes are withheld from their pension.

Under the Ordinary Collection method, taxpayers make payments in four installments in June, August, October and January, though bank withdrawal or direct payment to financial institutions.

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