Quick Answer
住民税 (resident tax) is a local tax of approximately 10% of your previous year's income, paid to your city/ward. It hits foreigners hard in their second year because there's a one-year delay — you pay nothing in Year 1, then suddenly see ~10% deducted from your payslip starting June of Year 2. This is NOT a mistake.
What is 住民税? じゅうみんぜい
住民税 (jūmin-zei) is Japan's resident tax — a local tax paid to your prefectural and municipal government. Unlike income tax (所得税), which goes to the national government, 住民税 funds local services: schools, roads, garbage collection, and community infrastructure in the city or ward where you live.
The tax is split into two components:
| Component | Japanese | Rate |
|---|---|---|
| Prefectural tax | 道府県民税 | ~4% |
| Municipal tax | 市町村民税 (区民税 in Tokyo wards) | ~6% |
| Total | ~10% | |
The combined rate is approximately 10% of your taxable income — this is a flat rate, not progressive like income tax. Whether you earn ¥3 million or ¥30 million, the percentage stays the same (though the base deductions mean very low earners pay less or nothing).
Key difference from income tax
The Year 2 shock 2年目の衝撃
This is the single most common financial surprise for foreigners in Japan. Here's why it happens:
住民税 is based on your previous year's income and your residency on January 1st. This creates a one-year delay that catches almost every foreigner off guard.
Timeline example: You arrive in Japan in April 2025
Why this matters
The reason for this delay is structural: your municipality needs your finalized income data (from 年末調整 or 確定申告) before it can calculate your 住民税. That data isn't available until early the following year, so billing starts in June.
How it's calculated 計算方法
住民税 has two parts: an income-based portion (所得割) and a flat-rate per-capita portion (均等割).
1. Income-based portion (所得割)
This is the main component. The formula:
Taxable income = Total income − Deductions (控除)
所得割 = Taxable income × 10%
(Prefecture 4% + Municipality 6% = 10%)
The deductions (控除) for 住民税 are similar to but NOT identical to income tax deductions. Some key differences:
| Deduction | Income Tax (所得税) | Resident Tax (住民税) |
|---|---|---|
| Basic deduction (基礎控除) | ¥480,000 | ¥430,000 |
| Spouse deduction (配偶者控除) | ¥380,000 | ¥330,000 |
| Dependent deduction (扶養控除) | ¥380,000 | ¥330,000 |
Important
2. Per-capita portion (均等割)
This is a flat annual charge regardless of income, currently approximately ¥5,000 per year (¥3,500 municipal + ¥1,500 prefectural). Some municipalities add a small surcharge for forest conservation (森林環境税) of ¥1,000, bringing the total to about ¥5,000–¥6,000.
Example calculation
Scenario: Annual salary of ¥5,000,000
Salary income: ¥5,000,000
Employment income deduction: −¥1,440,000
= Income (所得): ¥3,560,000
Basic deduction: −¥430,000
Social insurance deduction: −¥750,000 (approx)
= Taxable income: ¥2,380,000
所得割: ¥2,380,000 × 10% = ¥238,000
均等割: ¥5,000
Total 住民税: approximately ¥243,000/year (≈ ¥20,250/month)
Payment methods 納付方法
There are two ways to pay 住民税. Which one applies to you depends on your employment situation.
1. 特別徴収 (tokubetsu chōshū) — Payroll deduction
If you're employed (正社員, 契約社員, etc.), your employer deducts 住民税 from your salary in 12 equal monthly installments from June to May of the following year. This is the most common method. You don't have to do anything — the city sends the bill directly to your employer.
Every June, your employer will give you a 住民税決定通知書 (resident tax determination notice) — a long slip of paper showing your total 住民税 for the year and the monthly breakdown. Keep this for your records.
2. 普通徴収 (futsū chōshū) — Self-payment
If you're self-employed, a freelancer, or between jobs, the city sends payment slips (納付書) directly to your home. You pay in 4 quarterly installments:
| Installment | Due date |
|---|---|
| 1st (第1期) | End of June |
| 2nd (第2期) | End of August |
| 3rd (第3期) | End of October |
| 4th (第4期) | End of January (next year) |
You can pay at convenience stores (コンビニ), banks, the city office, or increasingly via credit card, PayPay, or Line Pay — check your municipality's accepted methods.
Warning
Special situations 特殊なケース
Changing jobs mid-year
When you leave a company, 特別徴収 stops. Depending on when you leave:
- • Leave between January and May: The remaining 住民税 for the current billing cycle is deducted in a lump sum from your final paycheck.
- • Leave between June and December: You can either (a) have the remaining balance deducted from your final paycheck, (b) continue paying via your new employer if they agree to take over 特別徴収, or (c) switch to 普通徴収 and pay yourself via payment slips.
If there's a gap between jobs, the city will automatically switch you to 普通徴収 and send payment slips to your home. These slips will arrive — don't be surprised.
Low income / non-taxable threshold
If your income is below a certain threshold, you may be exempt from 住民税 entirely. The exact threshold varies by municipality, but generally:
- • 所得割 exempt: Taxable income below approximately ¥350,000 (single, no dependents) — varies by city
- • 均等割 exempt: Taxable income below approximately ¥280,000–¥315,000 (single, no dependents) — varies by city
Being 住民税非課税 (non-taxable for resident tax) can qualify you for various benefits: reduced 国民健康保険 premiums, certain subsidies, and cash handouts from the government.
ふるさと納税 (furusato nozei)
ふるさと納税 is Japan's popular "hometown tax donation" system that effectively lets you redirect part of your 住民税 to a municipality of your choice — and receive gifts in return. It doesn't reduce your total tax burden (the deduction is almost 1:1), but you get regional products worth 30% of your donation. See our ふるさと納税 guide for details.
Leaving Japan 出国時の住民税
This is where 住民税's one-year delay becomes especially painful. Here are the two key rules:
Rule 1: You still owe for the previous year
If you leave Japan in, say, March 2026, you still owe 住民税 for all of 2025's income (because you were resident on January 1, 2026). That bill won't even arrive until June 2026 — when you're already gone. You must settle this before departure.
Rule 2: Appoint a 納税管理人 (tax agent)
If you can't settle the full 住民税 before departure, you must appoint a 納税管理人 (nōzei kanrinin) — a tax agent who lives in Japan and can receive payment notices and pay on your behalf. File the 納税管理人届出書 at your city/ward office before you leave.
Don't skip this
Silver lining: If you leave Japan before January 1st and are not a resident on that date, you will NOT owe 住民税 for the income earned in that calendar year. For example, if you permanently leave Japan in December 2025 (before January 1, 2026), you owe no 住民税 on your 2025 income. This can save hundreds of thousands of yen.
FAQ よくある質問
Why did my take-home pay suddenly drop in June?
Almost certainly 住民税. The billing cycle starts in June based on last year's income. If you arrived in Japan last year, this is your first time paying it. Check your payslip — you should see a new deduction line for 住民税.
Is 住民税 the same in every city?
The standard rate (10%) is set by national law, so it's essentially the same everywhere. However, a few municipalities have slightly higher or lower rates (±0.1%), and the 均等割 amount varies slightly. The difference is negligible for most people — you won't save meaningful money by moving to a different city.
Can I deduct 住民税 from my income tax?
No. Unlike some countries, Japan does not allow you to deduct local taxes from your national income tax return. 住民税 is calculated separately and is not a deductible expense.
I got a 住民税 payment slip but I have a job — isn't my employer supposed to pay?
This usually happens if you changed jobs, started a new job mid-year, or your employer hasn't set up 特別徴収 yet. Contact your employer's HR/payroll department and ask them to arrange 特別徴収. If you just started a new job, there may be a gap period where you need to self-pay.
What happens if I don't pay?
Late payment triggers 延滞金 (late payment penalty) — currently around 2.4% for the first month and 8.7% thereafter (rates as of 2025, updated annually). Continued non-payment can result in seizure (差押え) of bank accounts or salary. The city takes collection seriously.
I'm leaving Japan mid-year. Do I have to pay the full year's 住民税?
Yes. 住民税 is determined on January 1st for the full year. If you were a resident on January 1st, you owe the full year's amount regardless of when you leave. There is no pro-rating. However, if you leave before January 1st of the following year, you won't owe anything for income earned in that departure year.
Have a question about tax?
Search our guides and FAQ for answers about finances in Japan.
Sources
- 地方税法 第24条〜第328条 (住民税)
- 総務省 個人住民税
- 国税庁タックスアンサー No.2511 税額の計算と税額控除
Related Guides
Understanding Your Japanese Payslip
Every line on your 給与明細 explained in English — including the 住民税 deduction.
The Complete Guide to Filing Taxes in Japan
Everything about 確定申告 — who needs to file, when, how, and what deductions you can claim.
Leaving Japan Tax Guide
Tax obligations when you leave Japan — including settling your 住民税 balance.