Leaving Japan? See How Much You'd Keep
Japan's combined national income tax and resident tax reaches 55% for top earners. Compare your take-home pay across low-tax destinations and see what you could save each year.
Calculate Your Exact Savings
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Open the Calculator →How Japanese Tax Residency Works
Japan classifies individuals into three categories for tax purposes: non-permanent residents (tax resident for 5 years or less out of the past 10), permanent residents (tax resident for more than 5 years), and non-residents. Permanent residents are taxed on worldwide income. Non-permanent residents are taxed on Japan-source income plus foreign income remitted to Japan.
Tax residency is determined by having a domicile (jusho) or residence (kyosho) in Japan. To cease residency, you must remove your juminhyo (resident registration) at your ward office and notify the local government of your departure. You should also appoint a tax agent (nozei kanrinin) to handle any remaining obligations.
Filing Your Final Tax Return (Kakutei Shinkoku)
When leaving Japan, you must file a final income tax return (kakutei shinkoku) covering income from January 1 to your departure date. This return should be filed before you leave, or through a designated tax agent (nozei kanrinin) after departure.
You should also settle any outstanding resident tax (juminzei), which is calculated based on the previous year's income. Even after leaving Japan, you may receive resident tax bills for the current year that must be paid.
Why High Earners Are Leaving Japan
Japan's national income tax ranges from 5% to 45%, with an additional 10% resident tax (prefectural + municipal) and a 2.1% reconstruction surtax. The combined top marginal rate reaches approximately 55% for income above 40 million yen. Social insurance contributions add further costs.
For professionals in technology, finance, and consulting, the tax burden can exceed 20 million yen per year on high incomes. Jurisdictions like Singapore, the UAE, Thailand, and Malaysia offer dramatically lower rates with established expatriate communities and modern infrastructure.
Compare Japan vs Low-Tax Destinations
See detailed tax breakdowns at multiple income levels for the most popular destinations for Japanese expats:
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Frequently Asked Questions
How do I become a non-resident in Japan?
Remove your juminhyo (resident registration) at your ward office and notify the local government of your departure. Tax residency ceases when you no longer have a domicile or residence in Japan. Appoint a tax agent if you have remaining obligations.
What is non-permanent resident status?
For the first 5 years of tax residency (within the past 10 years), you are only taxed on Japan-source income and foreign income remitted to Japan. After 5 years, you become a permanent resident taxed on worldwide income.
Do I need a final tax return?
Yes. File a kakutei shinkoku covering January 1 to your departure date. This can be done before leaving or through a tax agent (nozei kanrinin) appointed to handle your affairs.
Can I withdraw my Japanese pension?
Non-Japanese nationals can apply for a lump-sum nenkin withdrawal within 2 years of departure. Japanese nationals retain their pension entitlements but cannot withdraw early.