Rules of
Daily Life

Japanese Taxation System Taxation of Foreign Nationals Income Tax Income Tax Returns Tax Deductions Income from Wages and Salaries Inhabitant’s Tax Consumption Tax and Local Consumption Tax Stamp Tax End of Year Tax Adjustments << Back to English Index << HOME

Inhabitant’s Tax Inhabitant’s tax is an umbrella term covering both prefectural and municipal individual inhabitant’s taxes. It is paid by all those resident in the prefecture and municipality as of January 1. Foreign nationals pay inhabitant’s tax in the municipality where they have completed Alien Registration ( >> Alien Registration System), and the prefecture in which that municipality is located. Thus, even if you do not pay resident's tax in the year you arrived in Japan, if you are still in Japan come January 1 of the following year you will be taxed for that year. This applies even if you leave the country later in the year. You can choose to pay your resident's tax as a lump sum in June or in 4 installments in June, August, October and January. It is possible for employees to have the inhabitant’s tax withheld from their monthly salary, in the same way as income tax. Prefectural Inhabitant Tax of Individuals Income Portion   4% + 1,000 yen (Iwate Reforestation Prefectural Tax) Municipal Inhabitant Tax of Individuals Income Portion ~2 million yen　3% ~7 million yen　8% 7 million yen~ 12% Fixed Portion Municipal Population > 50,000 ……2,500 yen Municipal Population < 50,000 ……2,000 yen 6%