Social Insurance Rates in 2026
Employer and employee split each premium half and half. These are the employee shares in Tokyo for fiscal 2026:
| Premium | Total rate | Employee share |
|---|---|---|
| Health insurance (Kyokai Kenpo Tokyo) | 9.85% | 4.925% |
| Nursing care insurance, age 40 to 64 | 1.62% | 0.81% |
| Child and child-rearing support levy | 0.23% | 0.115% |
| Employees' pension insurance | 18.3% | 9.15% |
| Employment insurance (general business) | 1.35% | 0.5% |
The Tokyo health rate fell from 9.91% to 9.85% in March 2026. The child support levy is new and is collected from April 2026 pay. Pension is charged on monthly pay up to ¥650,000, so it stops growing above about ¥7,800,000 a year.
Employment Income Deduction and Basic Deduction for 2026
Before any rate applies, salary is reduced by two allowances that the 2026 tax reform raised again.
- Employment income deduction (kyūyo shotoku kōjo): at least ¥740,000 for 2026, then 30%, 20% and 10% of pay in steps, up to ¥1,950,000. On ¥4,800,000 it is ¥1,400,000.
- Basic deduction (kiso kōjo): ¥1,040,000 when income after the first deduction is ¥4,890,000 or less, ¥670,000 up to ¥6,550,000, and ¥620,000 above that.
Together they mean no income tax on a salary up to ¥1,780,000, the new "1.78 million yen wall". The higher amounts arrive at the December year-end adjustment, so monthly withholding before then is a little too high and the difference comes back as a refund.
National Income Tax Rates and Reconstruction Surtax
| Taxable income | Rate | Subtract |
|---|---|---|
| ¥1,000 to ¥1,949,000 | 5% | ¥0 |
| ¥1,950,000 to ¥3,299,000 | 10% | ¥97,500 |
| ¥3,300,000 to ¥6,949,000 | 20% | ¥427,500 |
| ¥6,950,000 to ¥8,999,000 | 23% | ¥636,000 |
| ¥9,000,000 to ¥17,999,000 | 33% | ¥1,536,000 |
| ¥18,000,000 to ¥39,999,000 | 40% | ¥2,796,000 |
| ¥40,000,000 and over | 45% | ¥4,796,000 |
Multiply taxable income by the rate and subtract the amount on the right. The reconstruction special income tax then adds 2.1% of that figure. Social insurance premiums are fully deductible, which is why the taxable income on ¥4,800,000 is only ¥1,654,000.
Resident Tax Is Based on Last Year
Resident tax (jūminzei) is 10% of the previous year's taxable income, 6% to the city and 4% to the prefecture, plus a flat ¥5,000 that includes the forest environment tax. It is deducted from June to the following May.
The basic deduction for resident tax is smaller, ¥430,000, so this tax is usually larger than national income tax. On ¥4,800,000 it comes to ¥228,900, against ¥84,400 of income tax. In your first year in Japan you pay none, and in the year after you leave a job you can still owe it.
Worked Example on 4.8 Million Yen
- Monthly pay ¥400,000. Health ¥236,400, child levy ¥5,520, pension ¥439,200, employment insurance ¥24,000: social insurance ¥705,120
- Income after the employment income deduction: ¥3,400,000; less social insurance and the ¥1,040,000 basic deduction gives ¥1,654,000 taxable
- Income tax at 5%, plus 2.1%: ¥84,400
- Resident tax: ¥228,900
- Take home: ¥3,781,580 a year, ¥315,132 a month
From age 40 the nursing care premium adds ¥38,880 a year and take home falls to ¥3,748,500.
Tedori at Six Salary Levels
| Annual salary | Social insurance | Income tax | Resident tax | Net a year | Net a month |
|---|---|---|---|---|---|
| ¥2,500,000 | ¥367,250 | ¥13,300 | ¥89,700 | ¥2,029,750 | ¥169,146 |
| ¥3,500,000 | ¥514,150 | ¥41,600 | ¥145,000 | ¥2,799,250 | ¥233,271 |
| ¥4,800,000 | ¥705,120 | ¥84,400 | ¥228,900 | ¥3,781,580 | ¥315,132 |
| ¥6,000,000 | ¥881,400 | ¥149,300 | ¥307,300 | ¥4,662,000 | ¥388,500 |
| ¥8,000,000 | ¥1,156,900 | ¥436,000 | ¥453,800 | ¥5,953,300 | ¥496,108 |
| ¥12,000,000 | ¥1,378,500 | ¥1,241,200 | ¥826,600 | ¥8,553,700 | ¥712,808 |
Single, under 40, Tokyo, no bonus. At ¥1,780,000 income tax is ¥0 but social insurance still costs ¥261,482.
Bonuses, Allowances and What Is Not Taxed
- Bonuses paid in summer and winter are taxed and carry the same insurance rates. This calculator spreads all pay over 12 equal months; with bonuses the yearly total is close but the monthly figure is higher.
- Commuting allowance for public transport is free of income tax up to ¥150,000 a month, though it counts for social insurance.
- Overtime and most other allowances are taxed as salary.
Assumptions and Sources for Japan
- Single resident with no dependants, employed in Tokyo under Kyokai Kenpo for all of 2026.
- Premiums worked on actual monthly pay, not the standard monthly remuneration grades, so payroll figures can differ by a few hundred yen.
- Resident tax estimated as if last year's salary were the same, with the fiscal 2026 rules.
Sources: National Tax Agency income tax table and 2026 reform notices, Ministry of Finance FY2026 tax reform outline, Ministry of Internal Affairs on resident tax, Kyokai Kenpo, Japan Pension Service and the Ministry of Health, Labour and Welfare. Rates for 2026. Comparing offers in the region? Try the Philippines Gross to Net Calculator.
Frequently Asked Questions
How much is 4.8 million yen after tax in Japan?
About ¥3,781,580 a year, or ¥315,132 a month, for a single employee under 40 in Tokyo in 2026.
What is tedori?
Tedori is take home pay: salary after social insurance, income tax and resident tax are deducted.
Why is resident tax higher than income tax?
Resident tax is a flat 10% with a smaller basic deduction, while national tax starts at 5%.
What changed for 2026?
The employment income deduction minimum rose to ¥740,000 and the basic deduction to as much as ¥1,040,000, so no income tax is due on a salary up to ¥1,780,000. The child support levy also began in April.
Do I pay nursing care insurance?
Only from age 40 to 64, at 0.81% of pay in 2026.
How much is the pension contribution?
9.15% of monthly pay, up to ¥650,000 a month.