---
title: "Japan tax for new residents 2026: rates and regimes"
url: https://settleanywhere.com/countries/japan/tax/
lang: en
updated: 2026-10-11
---

# Japan tax

Special regime for new residents: Non-permanent resident foreign-source income treatment.

Checked against official sources on 11 Oct 2026 [Change log](https://settleanywhere.com/changes/)

## Special regimes for new residents

Special regime

### Non-permanent resident foreign-source income treatment

Tax relief

Foreign-source income: Remittance basis

**Details**

- Who: Resident: domicile or continuous residence in Japan for one year or more

Non-permanent residents are taxed in Japan on Japan-source income and on foreign-source income paid in or remitted to Japan; foreign-source income paid and kept abroad is outside the Japanese tax base. (sources 1, 2, 3)

#### Taxed on

Income tax on all Japan-source income plus foreign-source income that is paid in Japan or remitted to Japan from abroad, at the progressive national rates of 5% to 45%.

#### Who it applies to

- Resident: domicile or continuous residence in Japan for one year or more.
- Non-Japanese nationality.
- Domicile or residence in Japan for an aggregate of five years or less within the preceding ten years.

#### Exclusions

- Japan-source income, including pay for work performed in Japan, is taxed in full.
- Residents who are not non-permanent residents are taxed on worldwide income.

#### Tax residence

Resident = domicile, or continuous residence of one year or more. Non-permanent resident = non-Japanese national resident for an aggregate of five years or less in the preceding ten years. Based on facts, not visa type.

#### Visas

No visa grants this treatment; it follows tax residence and nationality.

#### Other taxes

Consumption tax: standard rate 10% (7.8% national plus 2.2% local) and reduced rate 8% (6.24% national plus 1.76% local). Local inhabitant tax and social insurance are separate.

Checked against official sources on 10 Oct 2026 [Change log](https://settleanywhere.com/changes/)

## Standard rules and foreign-source income

Standard rules

### Japan income tax: national progressive scale, reconstruction surtax and inhabitant tax

Progressive rates

**Details**

- On: Taxable income after deductions, taxed in progressive bands
- Who: Applies to residents
- Limit: ¥1.9M/yr ≈ $12k

National income tax is progressive in seven bands: 5% up to JPY 1,949,000 (≈ $12,300) of taxable income, 10% to JPY 3,299,000, (≈ $20,800) 20% to JPY 6,949,000, (≈ $43,800) 23% to JPY 8,999,000, (≈ $56,800) 33% to JPY 17,999,000, (≈ $114,000) 40% to JPY 39,999,000 (≈ $252,000) and 45% from JPY 40,000,000 (≈ $252,000). Residents other than non-permanent residents are taxed on worldwide income, including foreign-source income; non-permanent residents are taxed on Japan-source income and on foreign-source income paid in or remitted to Japan. A 2.1% reconstruction surtax on the base income tax and a 10% inhabitant tax come on top. (sources 4, 5)

#### Taxed on

Taxable income after deductions, taxed in progressive bands (separate-taxation items excluded); inhabitant tax is assessed on the previous year's income.

#### Who it applies to

- Applies to residents; non-permanent residents are taxed on Japan-source and remitted foreign-source income.

#### Exclusions

- Income taxed under separate-taxation rules is outside the progressive scale.
- For 2025 onward, where base income exceeds JPY 330 million (≈ $2,080,000), an extra amount is added when 22.5% of the excess is higher than the ordinary income tax and reconstruction surtax.

#### Limits

- JPY 1,949,000 a year (≈ $12,300) · Upper limit of the 5% national band (taxable income from JPY 1,000 (≈ $6)); quick-table deduction JPY 0.
- JPY 3,299,000 a year (≈ $20,800) · Upper limit of the 10% band (from JPY 1,950,000 (≈ $12,300)); quick-table deduction JPY 97,500 (≈ $610).
- JPY 6,949,000 a year (≈ $43,800) · Upper limit of the 20% band (from JPY 3,300,000 (≈ $20,800)); quick-table deduction JPY 427,500 (≈ $2,700).
- JPY 8,999,000 a year (≈ $56,800) · Upper limit of the 23% band (from JPY 6,950,000 (≈ $43,800)); quick-table deduction JPY 636,000 (≈ $4,010).
- JPY 17,999,000 a year (≈ $114,000) · Upper limit of the 33% band (from JPY 9,000,000 (≈ $56,800)); quick-table deduction JPY 1,536,000 (≈ $9,690).
- JPY 39,999,000 a year (≈ $252,000) · Upper limit of the 40% band (from JPY 18,000,000 (≈ $114,000)); quick-table deduction JPY 2,796,000 (≈ $17,600).
- JPY 40,000,000 a year (≈ $252,000) · The 45% band applies from this taxable income; quick-table deduction JPY 4,796,000 (≈ $30,300).

#### Tax residence

Resident individuals are domiciled in Japan or have continuous residence of 1 year or more.

#### Visas

Tax treatment follows residence status for tax, not visa type.

#### Other taxes

Reconstruction special income tax is 2.1% of the base income tax, filed and paid with income tax; for income arising from 1 January 2027 the reconstruction rate falls to 1.1% and a 1% defence special income tax is withheld alongside. Individual inhabitant tax is 10% of taxable income (4% prefectural plus 6% municipal at standard rates; local governments may set different rates), charged on the previous year's income to persons domiciled in Japan on 1 January, plus per-capita amounts of JPY 1,000 (≈ $6) prefectural and JPY 3,000 (≈ $19) municipal.

Checked against official sources on 11 Oct 2026 [Change log](https://settleanywhere.com/changes/)

## VAT, social security and other taxes

- Consumption tax: standard rate 10% (7.8% national plus 2.2% local) and reduced rate 8% (6.24% national plus 1.76% local). Local inhabitant tax and social insurance are separate.
- Reconstruction special income tax is 2.1% of the base income tax, filed and paid with income tax; for income arising from 1 January 2027 the reconstruction rate falls to 1.1% and a 1% defence special income tax is withheld alongside. Individual inhabitant tax is 10% of taxable income (4% prefectural plus 6% municipal at standard rates; local governments may set different rates), charged on the previous year's income to persons domiciled in Japan on 1 January, plus per-capita amounts of JPY 1,000 (≈ $6) prefectural and JPY 3,000 (≈ $19) municipal.

## Questions people ask

### Who qualifies for Non-permanent resident foreign-source income treatment?

Resident: domicile or continuous residence in Japan for one year or more. No visa grants this treatment; it follows tax residence and nationality.

### How are Digital nomad visa holders taxed in Japan?

No special regime in our records is tied to the Digital nomad visa. The standard rules apply: National income tax is progressive in seven bands: 5% up to JPY 1,949,000 (≈ $12,300) of taxable income, 10% to JPY 3,299,000, (≈ $20,800) 20% to JPY 6,949,000, (≈ $43,800) 23% to JPY 8,999,000, (≈ $56,800) 33% to JPY 17,999,000, (≈ $114,000) 40% to JPY 39,999,000 (≈ $252,000) and 45% from JPY 40,000,000 (≈ $252,000). Residents other than non-permanent residents are taxed on worldwide income, including foreign-source income; non-permanent residents are taxed on Japan-source income and on foreign-source income paid in or remitted to Japan.

≈ USD figures are approximate: daily reference rates from ExchangeRate-API, dated 12 Oct 2026, refreshed when the site is updated.

**Sources (5)**

## Official sources

1. [2025 Income Tax and Special Income Tax for Reconstruction Guide, section 1-3](https://www.nta.go.jp/english/taxes/individual/pdf/incometax_2025/04.pdf) · National Tax Agency Japan · checked 2026-10-10 · published 2025
2. [Tax on the income of an individual as a non-resident in Japan](https://www.nta.go.jp/english/taxes/individual/12006.htm) · National Tax Agency Japan · checked 2026-10-10
3. [Basic knowledge of Consumption Tax](https://www.nta.go.jp/english/taxes/consumption_tax/01.htm) · National Tax Agency Japan · checked 2026-10-10
4. [No.2260 Income tax rates (as of 1 April 2026)](https://www.nta.go.jp/taxes/shiraberu/taxanswer/shotoku/2260.htm) · National Tax Agency Japan · checked 2026-10-10 · published 2026-04-01
5. [Overview of individual tax system (individual income tax rates and inhabitant tax)](https://www.jetro.go.jp/en/invest/setting_up/section3/page7.html) · Japan External Trade Organization (JETRO) · checked 2026-10-10