Asked about Japanese payroll, income tax withholding (源泉徴収 gensen chōshū), social insurance (社会保険 shakai hoken), labour insurance (労働保険 rōdō hoken), or employer obligations in Japan.
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Income tax year
1 January – 31 December (calendar year)Income Tax Act (所得税法)
Social insurance fiscal year
1 April – 31 MarchHealth Insurance Act (健康保険法); Employees' Pension Insurance Act (厚生年金保険法)
Reconstruction surtax rate
2.1% on calculated income taxAct on Special Measures for Securing Financial Resources Necessary to Implement Measures for Reconstruction following the Great East Japan Earthquake (復興特別所得税法)
Reconstruction surtax end date
31 December 2037Act on Special Measures for Securing Financial Resources Necessary to Implement Measures for Reconstruction following the Great East Japan Earthquake (復興特別所得税法)
Secondary employer (乙) minimum withholding flat rate
3.063%Income Tax Act (所得税法); NTA withholding tax tables (源泉徴収税額表)
Income tax rate – band 1 (¥0 – ¥1,950,000)
5%; deduction ¥0Income Tax Act (所得税法)
Income tax rate – band 2 (¥1,950,001 – ¥3,300,000)
10%; deduction ¥97,500Income Tax Act (所得税法)
Income tax rate – band 3 (¥3,300,001 – ¥6,950,000)
20%; deduction ¥427,500Income Tax Act (所得税法)
Income tax rate – band 4 (¥6,950,001 – ¥9,000,000)
23%; deduction ¥636,000Income Tax Act (所得税法)
Income tax rate – band 5 (¥9,000,001 – ¥18,000,000)
33%; deduction ¥1,536,000Income Tax Act (所得税法)
Income tax rate – band 6 (¥18,000,001 – ¥40,000,000)
40%; deduction ¥2,796,000Income Tax Act (所得税法)
Income tax rate – band 7 (¥40,000,001+)
45%; deduction ¥4,796,000Income Tax Act (所得税法)
Resident tax (住民税) rate – approximate
~10% (municipal + prefectural combined); withheld from June of the following yearLocal Tax Act (地方税法)
Employment income deduction – minimum (up to ¥1,625,000), 2026
¥650,000 (raised from ¥550,000 in 2026)Income Tax Act (所得税法)
Employment income deduction – band 2 (¥1,625,001 – ¥1,800,000), 2026
Income × 40% - ¥100,000Income Tax Act (所得税法)
Employment income deduction – band 3 (¥1,800,001 – ¥3,600,000), 2026
Income × 30% + ¥80,000Income Tax Act (所得税法)
Employment income deduction – band 4 (¥3,600,001 – ¥6,600,000), 2026
Income × 20% + ¥440,000Income Tax Act (所得税法)
Employment income deduction – band 5 (¥6,600,001 – ¥8,500,000), 2026
Income × 10% + ¥1,100,000Income Tax Act (所得税法)
Employment income deduction – cap (¥8,500,001+), 2026
¥1,950,000Income Tax Act (所得税法)
Health insurance – employee rate (Tokyo, 2026)
~4.925%Health Insurance Act (健康保険法); Kyōkai Kenpō Tokyo rate schedule
Health insurance – SMR ceiling (Grade 50)
¥1,390,000/monthHealth Insurance Act (健康保険法)
Long-term care insurance – employee rate (Tokyo, 2026)
~0.810%; applicable to ages 40–64 onlyLong-Term Care Insurance Act (介護保険法)
Welfare pension (厚生年金) – employee rate (2026)
9.150%Employees' Pension Insurance Act (厚生年金保険法)
Welfare pension – SMR ceiling (Grade 32)
¥650,000/monthEmployees' Pension Insurance Act (厚生年金保険法)
Employment insurance – employee rate (from April 2026)
0.50%Employment Insurance Act (雇用保険法)
Child-rearing support levy (子ども・子育て支援金) – employee rate (from April 2026)
0.115%Child and Child-Rearing Support Act (子ども・子育て支援法)
Health insurance total rate (Tokyo, 2026)
9.85% total (4.925% employee / 4.925% employer)Health Insurance Act (健康保険法); Kyōkai Kenpō Tokyo rate schedule
SMR determination period (算定基届)
Based on April–June average earnings; filed 1–10 July annuallyHealth Insurance Act (健康保険法); Employees' Pension Insurance Act (厚生年金保険法)
Mid-year SMR change threshold (随時改定)
≥2 grade change sustained over 3 monthsHealth Insurance Act (健康保険法); Employees' Pension Insurance Act (厚生年金保険法)
Health insurance – annual bonus premium cap
¥5,730,000 cumulative annual cap on bonusHealth Insurance Act (健康保険法)
Welfare pension – per-bonus premium cap
¥1,500,000 per single bonus paymentEmployees' Pension Insurance Act (厚生年金保険法)
Health insurance – employer rate (Tokyo, 2026)
~4.925%Health Insurance Act (健康保険法); Kyōkai Kenpō Tokyo rate schedule
Long-term care insurance – employer rate (2026)
~0.810%; ages 40–64 onlyLong-Term Care Insurance Act (介護保険法)
Welfare pension – employer rate (2026)
9.150%Employees' Pension Insurance Act (厚生年金保険法)
Child allowance contribution (子ども・子育て拠出金) – employer-only rate (2026)
0.360% on SMRChild and Child-Rearing Support Act (子ども・子育て支援法)
Child-rearing support levy – employer rate (from April 2026)
0.115%Child and Child-Rearing Support Act (子ども・子育て支援法)
Employment insurance – employer rate (from April 2026)
0.85%Employment Insurance Act (雇用保険法)
Workers' compensation – employer rate (typical office)
0.30% (range: 0.25%–8.8% by industry)Workers' Accident Compensation Insurance Act (労働者災害補償保険法)
Total employer social insurance cost (Tokyo, age 40–64, 2026)
~16.51%Health Insurance Act (健康保険法); Employees' Pension Insurance Act (厚生年金保険法); Employment Insurance Act (雇用保険法); Workers' Accident Compensation Insurance Act (労働者災害補償保険法)
Total employer social insurance cost – under age 40 (Tokyo, no long-term care, 2026)
~15.70%Health Insurance Act (健康保険法); Employees' Pension Insurance Act (厚生年金保険法); Employment Insurance Act (雇用保険法)
National weighted average minimum wage (October 2025)
¥1,121/hourMinimum Wage Act (最低賃金法)
Tokyo minimum wage (October 2025)
¥1,163/hourMinimum Wage Act (最低賃金法)
Kanagawa minimum wage (October 2025)
¥1,162/hourMinimum Wage Act (最低賃金法)
Osaka minimum wage (October 2025)
¥1,114/hourMinimum Wage Act (最低賃金法)
Aichi minimum wage (October 2025)
¥1,077/hourMinimum Wage Act (最低賃金法)
Fukuoka minimum wage (October 2025)
¥1,004/hourMinimum Wage Act (最低賃金法)
Okinawa minimum wage (October 2025)
¥952/hourMinimum Wage Act (最低賃金法)
Regular overtime premium (>8 hrs/day or >40 hrs/week)
125% (25% premium)Labour Standards Act (労働基準法) Art. 37(1)
Overtime exceeding 60 hours/month premium
150% (50% premium)Labour Standards Act (労働基準法) Art. 37(1) proviso
Late-night work (22:00–05:00) premium
125% (25% premium)Labour Standards Act (労働基準法) Art. 37(4)
Overtime + late-night combined rate
150% (25% + 25%)Labour Standards Act (労働基準法) Art. 37(1) and Art. 37(4)
Statutory holiday work (法定休日) premium
135% (35% premium)Labour Standards Act (労働基準法) Art. 37(1)
Statutory holiday + late-night combined rate
160% (35% + 25%)Labour Standards Act (労働基準法) Art. 37(1) and Art. 37(4)
36 Agreement – standard monthly overtime limit
45 hoursLabour Standards Act (労働基準法)
36 Agreement – standard annual overtime limit
360 hoursLabour Standards Act (労働基準法)
36 Agreement – special clause monthly maximum (incl. holiday work)
Up to 100 hoursLabour Standards Act (労働基準法)
36 Agreement – special clause annual maximum
Up to 720 hoursLabour Standards Act (労働基準法)
36 Agreement – multi-month average maximum
Must not exceed 80 hrs/month over any 2–6 month windowLabour Standards Act (労働基準法)
Paid leave entitlement – 0.5 years of service
10 daysLabour Standards Act (労働基準法)
Paid leave entitlement – 1.5 years
11 daysLabour Standards Act (労働基準法)
Paid leave entitlement – 2.5 years
12 daysLabour Standards Act (労働基準法)
Paid leave entitlement – 3.5 years
14 daysLabour Standards Act (労働基準法)
Paid leave entitlement – 4.5 years
16 daysLabour Standards Act (労働基準法)
Paid leave entitlement – 5.5 years
18 daysLabour Standards Act (労働基準法)
Paid leave entitlement – 6.5+ years (maximum)
20 daysLabour Standards Act (労働基準法)
Attendance requirement for paid leave eligibility
80% attendance in preceding yearLabour Standards Act (労働基準法)
Minimum paid leave days employer must ensure taken per year
5 daysLabour Standards Act (労働基準法)
Unused paid leave expiry
2 yearsLabour Standards Act (労働基準法)
Maternity leave – pre-birth period
6 weeks (14 weeks for multiple pregnancy)Labour Standards Act (労働基準法)
Maternity leave – post-birth period (mandatory)
8 weeksLabour Standards Act (労働基準法)
Maternity benefit rate (出産手当金)
~67% of daily wage from health insuranceHealth Insurance Act (健康保険法)
Lump-sum birth allowance (出産育児一時金)
¥500,000Health Insurance Act (健康保険法)
Childcare leave – benefit rate (first 180 days)
67% of wage from employment insuranceEmployment Insurance Act (雇用保険法)
Childcare leave – benefit rate (after 180 days)
50% of wage from employment insuranceEmployment Insurance Act (雇用保険法)
Health insurance injury/sickness allowance (傷病手当金) – rate
2/3 of daily wageHealth Insurance Act (健康保険法)
Health insurance injury/sickness allowance – waiting period
From the 4th day of absenceHealth Insurance Act (健康保険法)
Health insurance injury/sickness allowance – maximum duration
Up to 18 monthsHealth Insurance Act (健康保険法)
Monthly withholding tax payment – standard due date
10th of the following monthIncome Tax Act (所得税法)
Withholding tax payment – small employer (≤10 employees) semi-annual: January–June
10 JulyIncome Tax Act (所得税法)
Withholding tax payment – small employer (≤10 employees) semi-annual: July–December
10 JanuaryIncome Tax Act (所得税法)
Issue withholding tax slip (源泉徴収票) to employees
31 JanuaryIncome Tax Act (所得税法)
File 法定調書合計表 (statutory report summary) to tax office
31 JanuaryIncome Tax Act (所得税法)
Submit 給与支払報告書 (salary payment report) to municipality
31 JanuaryLocal Tax Act (地方税法)
算定基届 (annual SMR determination) filing deadline
1–10 JulyHealth Insurance Act (健康保険法); Employees' Pension Insurance Act (厚生年金保険法)
賞与支払届 (bonus payment notification) deadline
Within 5 days of bonus paymentHealth Insurance Act (健康保険法); Employees' Pension Insurance Act (厚生年金保険法)
労働保険年度更新 (annual labour insurance update) filing period
1 June – 10 JulyWorkers' Accident Compensation Insurance Act (労働者災害補償保険法); Employment Insurance Act (雇用保険法)
Late withholding tax payment – non-payment surcharge (不納付加算税)
5%–10% additional taxAct on General Rules for National Taxes (国税通則法)
Late withholding tax payment – delinquency tax (延滞税)
Delinquency tax (延滞税) applies in addition to non-payment surchargeAct on General Rules for National Taxes (国税通則法)
Overtime limit violation (36 Agreement) – penalty
Up to ¥300,000 fine or 6 months imprisonmentLabour Standards Act (労働基準法)
Failure to grant minimum 5 days paid leave – penalty
Up to ¥300,000 fine per violationLabour Standards Act (労働基準法)
Failure to enrol in social insurance – penalty
Up to 6 months imprisonment or ¥500,000 fine; retroactive enrolment + premiumsHealth Insurance Act (健康保険法); Employees' Pension Insurance Act (厚生年金保険法)
Commuting allowance – non-taxable monthly cap
¥150,000/monthIncome Tax Act (所得税法)
Resident tax – withholding period
June through following May (flat monthly amount per municipality notification)Local Tax Act (地方税法)
Quick Reference table
| Field | Value |
|---|---|
| Country | Japan (日本国) |
| Currency | JPY (¥) only |
| Tax year (income tax) | Calendar year (1 January -- 31 December) |
| Fiscal year (social insurance) | 1 April -- 31 March |
| Primary legislation | Income Tax Act (所得税法); Labour Standards Act (労働基準法); Health Insurance Act (健康保険法); Employees' Pension Insurance Act (厚生年金保険法); Employment Insurance Act (雇用保険法) |
| Tax authority | National Tax Agency (国税庁 NTA) |
| Social insurance authority | Japan Pension Service (日本年金機構); prefecture health insurance associations |
| Reporting system | 源泉徴収税額表 (withholding tax tables); 年末調整 (year-end adjustment) |
| Pay frequency | Monthly (most common, typically 25th or end of month) |
| Employer registration | Tax office (源泉徴収義務者) + Japan Pension Service + Hello Work (ハローワーク) |
| Validated by | Pending -- requires sign-off by a Japanese certified tax accountant (税理士) or social insurance labour consultant (社会保険労務士) |
| Skill version | 1.0 |
Japanese employers withhold income tax monthly using the NTA's published withholding tax tables (源泉徴収税額表 -- monthly table / 月額表). The tables include the 2.1% reconstruction surtax (復興特別所得税, in effect through 31 December 2037).
Withholding Table Categories
| Column | Japanese | Criteria |
|---|---|---|
| 甲 (Kō) | Primary employer | Employee has submitted 扶養控除等申告書 (dependency exemption declaration) |
| 乙 (Otsu) | Secondary employer | No declaration filed; flat 3.063% minimum or table rate |
These are the annual rates applied at year-end adjustment (年末調整) or final return (確定申告). Monthly withholding approximates these progressively.
Individual Income Tax Brackets (Annual)
| Taxable Income (JPY) | Rate | Deduction |
|---|---|---|
| 0 -- 1,950,000 | 5% | ¥0 |
| 1,950,001 -- 3,300,000 | 10% | ¥97,500 |
| 3,300,001 -- 6,950,000 | 20% | ¥427,500 |
| 6,950,001 -- 9,000,000 | 23% | ¥636,000 |
| 9,000,001 -- 18,000,000 | 33% | ¥1,536,000 |
| 18,000,001 -- 40,000,000 | 40% | ¥2,796,000 |
| 40,000,001+ | 45% | ¥4,796,000 |
Employment Income Deduction (2026)
| Gross Employment Income (JPY) | Deduction |
|---|---|
| Up to 1,625,000 | ¥650,000 (minimum, raised from ¥550,000 in 2026) |
| 1,625,001 -- 1,800,000 | Income × 40% - ¥100,000 |
| 1,800,001 -- 3,600,000 | Income × 30% + ¥80,000 |
| 3,600,001 -- 6,600,000 | Income × 20% + ¥440,000 |
| 6,600,001 -- 8,500,000 | Income × 10% + ¥1,100,000 |
| 8,500,001+ | ¥1,950,000 (cap) |
Japanese social insurance premiums are split approximately 50/50 between employer and employee (except workers' compensation which is employer-only and child allowance contribution which was employer-only until 2026).
Employee Share of Social Insurance (2026)
| Premium | Employee Rate | Basis | Ceiling |
|---|---|---|---|
| Health insurance (健康保険) | ~4.925% (Tokyo) | Standard monthly remuneration (SMR) | Grade 50: ¥1,390,000/month |
| Long-term care insurance (介護保険) | ~0.810% | SMR | Same as health; ages 40--64 only |
| Welfare pension (厚生年金) | 9.150% | SMR | Grade 32: ¥650,000/month |
| Employment insurance (雇用保険) | 0.50% (from Apr 2026) | Total wages | No ceiling |
| Child-rearing support (子ども・子育て支援金) | 0.115% (from Apr 2026) | SMR | Same as health |
Employer Share of Social Insurance (2026)
| Premium | Employer Rate | Notes |
|---|---|---|
| Health insurance (Tokyo) | ~4.925% | Same as employee |
| Long-term care insurance | ~0.810% | Same as employee (ages 40--64) |
| Welfare pension | 9.150% | Same as employee |
| Child allowance contribution (子ども・子育て拠出金) | 0.360% | Employer-only; on SMR |
| Child-rearing support (子ども・子育て支援金) | 0.115% | From Apr 2026; same as employee |
| Employment insurance | 0.85% (from Apr 2026) | Higher than employee share |
| Workers' compensation (労災保険) | 0.30% (typical office) | Employer-only; rate varies by industry (0.25%--8.8%) |
Total Indicative Employer Cost (2026, Tokyo, Age 40--64)
| Component | Rate |
|---|---|
| Health + long-term care | 5.735% |
| Welfare pension | 9.150% |
| Child allowance + child-rearing support | 0.475% |
| Employment insurance | 0.850% |
| Workers' compensation (office) | 0.300% |
| Total employer social insurance | ~16.51% |
Minimum Wage by Prefecture (Oct 2025)
| Prefecture | Rate (JPY/hour, Oct 2025) |
|---|---|
| Tokyo | ¥1,163 |
| Kanagawa | ¥1,162 |
| Osaka | ¥1,114 |
| Aichi | ¥1,077 |
| Fukuoka | ¥1,004 |
| Okinawa | ¥952 |
The government targets ¥1,500/hour by the late 2020s.
Overtime premium rates
| Category | Premium Rate | Legal Basis |
|---|---|---|
| Regular overtime (> 8 hrs/day or > 40 hrs/week) | 125% (25% premium) | Art. 37(1) |
| Overtime exceeding 60 hrs/month | 150% (50% premium) | Art. 37(1) proviso |
| Late-night work (22:00--05:00) | 125% (25% premium) | Art. 37(4) |
| Overtime + late-night | 150% (25% + 25%) | Combined |
| Statutory holiday work (法定休日) | 135% (35% premium) | Art. 37(1) |
| Statutory holiday + late-night | 160% (35% + 25%) | Combined |
36 Agreement limits
| Limit | Standard | Special Clause |
|---|---|---|
| Monthly | 45 hours | Up to 100 hours (incl. holiday work) |
| Annual | 360 hours | Up to 720 hours |
| Multi-month average | -- | Must not exceed 80 hrs/month over any 2--6 month window |
Annual Paid Leave schedule
| Years of Service | Days Granted |
|---|---|
| 0.5 years | 10 days |
| 1.5 years | 11 days |
| 2.5 years | 12 days |
| 3.5 years | 14 days |
| 4.5 years | 16 days |
| 5.5 years | 18 days |
| 6.5+ years | 20 days (maximum) |
Employers must provide a pay statement (給与明細書 kyūyo meisai-sho) each pay period under the Income Tax Act and Labour Standards Act.
Monthly Withholding Tax Payment due dates
| Employer Size | Due Date |
|---|---|
| Standard | 10th of the following month |
| Small employer (≤ 10 employees, with approval) | Semi-annually: 10 July (Jan--Jun) and 10 January (Jul--Dec) |
Year-End Adjustment deadlines table
| Task | Deadline |
|---|---|
| Collect employee declarations (扶養控除等申告書, 保険料控除申告書, etc.) | November--December |
| Perform year-end adjustment calculation | December payroll |
| Issue withholding tax slip (源泉徴収票) to employees | 31 January |
| File 法定調書合計表 (statutory report summary) to tax office | 31 January |
| Submit 給与支払報告書 (salary payment report) to municipality | 31 January |
Social Insurance Reporting deadlines
| Report | Deadline | Authority |
|---|---|---|
| 算定基届 (annual SMR determination) | 1--10 July | Japan Pension Service |
| 月額変更届 (mid-year SMR change) | Promptly upon qualifying change | Japan Pension Service |
| 賞与支払届 (bonus payment notification) | Within 5 days of bonus payment | Japan Pension Service |
| 労働保険年度更新 (annual labour insurance update) | 1 June -- 10 July | Labour Bureau |
Penalties table
| Violation | Consequence |
|---|---|
| Late withholding tax payment | 5%--10% additional tax (不納付加算税) + delinquency tax (延滞税) |
| Failure to withhold | Employer liable for full tax amount |
| Overtime limit violation (36 Agreement) | Up to ¥300,000 fine or 6 months imprisonment |
| Failure to grant minimum 5 days paid leave | Up to ¥300,000 fine per violation |
| Failure to enrol in social insurance | Up to 6 months imprisonment or ¥500,000 fine; retroactive enrolment + premiums |
Monthly salary ¥350,000. No dependents (甲 column, 0 dependents). Commuting allowance ¥15,000/month (non-taxable up to ¥150,000/month).
Employer additionally pays: ¥17,238 (health) + ¥32,025 (pension) + ¥1,260 (child allowance) + ¥403 (child-rearing) + ¥3,103 (employment ins.) + ¥1,095 (workers' comp) = ~¥55,124
Employee with SMR grade ¥350,000 receives ¥700,000 summer bonus.
Employee's base salary increases from ¥300,000 to ¥350,000 in April. If the new SMR grade is 2+ grades different from the current grade, the employer files a 月額変更届. New SMR takes effect from July. Social insurance premiums update from the July payroll.
Social insurance premiums (both employee and employer shares) are exempt during childcare leave. Employment insurance premiums are not charged on zero-pay months. The employee receives childcare leave benefits from employment insurance (67% for first 180 days, 50% thereafter).
Interaction with Other Skills table
| Skill | Interaction |
|---|---|
| payroll-workflow-base | Provides generic payroll processing steps; this skill adds Japan-specific rules |
| japan-bookkeeping | Payroll journals: salaries + ER social insurance to P&L; net pay + withholding tax + social insurance payable to BS |
| japan-consumption-tax | No consumption tax on salaries; commuting allowances are non-taxable for income tax but included in employment insurance base |
| japan-corporate-tax | Employer social insurance contributions and retirement allowance provisions are deductible expenses |
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