Income Tax in Japan for Foreigners 2026: Get Your Refund

Last updated: 2 October 2026

Figures, prices and terms were checked against NTA Taxanswer No.1199 (basic deduction) and No.1410 (employment income deduction) on 16 September 2026 (the income-tax wall was corrected to 1.78 million yen via NTA No. 1199; first checked 6 August 2026). They change – check the current terms yourself before you sign up or file anything.

Once this is clear, the tax taken from your pay looks like a deposit you get back, not money lost – and you can see roughly how much returns in December.

Japanese tax sounds complicated, but for a student with a part-time job, it comes down to two things and how to get your money back when you overpay. This guide covers both, plus a deduction almost nobody explains in English.

The only two taxes you need to know

Income tax (shotokuzei) goes to the national government and is taken out of your paycheck automatically. Resident tax (juminzei) goes to your city and arrives as a bill the following year, based on what you earned.

• Income tax: national, deducted monthly from your salary before you ever see it
• Resident tax: local, calculated on last year’s income and billed to you afterward

Once you understand how each one is charged and how each one is refunded, there is nothing left to lose money on.

Income tax: withheld automatically from every paycheck

Withholding (gensen choshu) means your employer takes the tax out before paying you, so what lands in your account is already after-tax. The trigger point in 2026 is monthly pay of 105,000 yen after social insurance – below that, nothing is withheld (it was 88,000 yen up to 2025).

This withheld amount is only a provisional estimate. Your real tax for the year is calculated at year-end, so if too much was withheld, you get it back – covered in the next section.

Does a tax treaty make your part-time pay tax-free?

Your classmate works about as many hours as you do, yet their payslip shows 0 yen of income tax. It happens, and the reason is a tax treaty between Japan and their home country. Some treaties have a rule for students that removes income tax on part-time pay.

The National Tax Agency’s Q&A on students’ part-time pay (Japanese) splits it by country:

• China: a student in Japan only to study pays no income tax on part-time pay that covers living costs and tuition (Japan-China tax treaty, Article 21)
• Thailand and Indonesia: it can be tax-free, but there are limits on the length of stay and the amount earned
• India, Vietnam, Malaysia and Taiwan: only money paid from outside Japan is exempt, so part-time pay earned in Japan is taxed as usual

The school matters too. The rule covers students at schools defined in Article 1 of the School Education Act, such as universities and colleges of technology. Students at Japanese language schools and other vocational or miscellaneous schools are not covered on that basis alone (Japanese).

To claim it, hand the tax treaty notification form for students, with a certificate of enrollment from your school (Japanese), to each employer before your first payday there. The employer passes it to the tax office. Until you hand it in, tax is withheld as normal. For any other country, the treaty wording differs, so check yours on the NTA tax treaty page (Japanese).

How much can you earn before tax kicks in – the 2026 walls

A “wall” is the income level where a new tax starts to apply. The 2025 tax reform pushed these walls higher than before. For a student in 2026, two walls matter.

The numbers, for a student earning only salary income in 2026:

• Resident tax wall: about 1.1 million yen a year – go over this and resident tax applies the following year (the exact line varies slightly by city)
• Income tax wall: 1.78 million yen for 2026 income (basic deduction 1,040,000 + employment income deduction 740,000) – enacted in the FY2026 tax reform, in force from 1 December 2026 and applied in the December year-end adjustment (NTA No. 1199, basic deduction, checked September 2026). 2025 income stays at 1.6 million (950,000 + 650,000). The August version of this article called 1.78 million a proposal; it is now law
• Working Student Deduction: 270,000 yen – an extra deduction only students can claim, on top of the regular allowances, for 2026 income, if your total income is 890,000 yen or less (a yearly salary of up to 1.63 million yen); for 2025 income the line was 1.5 million yen

There is also a “dependent wall” that matters if your parent is enrolled in Japanese health insurance and taxes, but for most students who came to Japan alone, that does not apply – the two walls above are what matter. Tax rules change often, so check the current figures on the National Tax Agency (NTA) Tax Answer No. 1199 (Japanese).

What is the income tax rate in Japan?

The question everyone actually wants answered. Japanese income tax is progressive – the more you earn the higher the rate – running from 5% to 45% across seven brackets.

The important part: “taxable income” in that table is not your salary. It is what remains after the employment income deduction and the basic deduction are taken off.

Which means almost every student working part-time sits in the top row, at 5%. When you hear “they take 45%”, that applies to people earning over 40 million yen a year.

One more item people forget: the special reconstruction income tax, an extra 2.1% of your income tax amount (from 2027 income it is split into 1.1% reconstruction tax plus a 1% defense special income tax (Japanese), still 2.1% in total). At the 5% bracket your real rate is 5.105%. Small, but it explains sums that do not quite add up.

If you are paid after leaving Japan (non-residents)

Getting this wrong costs money. Becoming a non-resident changes the rate entirely.

Salary paid to a non-resident is taxed at a flat 20.42% at source (20% income tax plus 0.42% reconstruction tax). No brackets, no deductions. Someone who was paying 5% jumps to 20.42%.

If a final salary or bonus lands after you have flown home, this can catch you. The checklist for leaving Japan explains why the timing of that payment is worth checking.

Getting overpaid tax back: year-end adjustment and tax returns

Because monthly withholding is only an estimate, most student workers have paid in more than they actually owe. Getting that money back is called a refund (kanpu-kin), and it happens through one of two processes.

Which process applies depends on how many jobs you have.

Working two jobs? A tax return is not optional

If you work two or more part-time jobs, year-end adjustment at one of them is not enough to settle your full tax bill. You are required to file your own tax return (kakutei shinkoku).

• When: roughly February 16 to March 15 each year
• What you need: a withholding statement (gensen choshu-hyo) from every job, your residence card, and a bank account for the refund
• How: the NTA’s online filing tool (Kakutei Shinkoku corner) walks you through it with simple questions and can be done from your phone

Skipping this is not just missing out on a refund – it can lead to a late-payment penalty if you actually owed more. Filing is both how you get money back and how you stay out of trouble. For the full rules on how many hours you can legally work, see our guide to working and earning in Japan.

Never ignore a resident tax bill

Tax came out of every paycheck, so you assume your taxes are finished. Where you come from, that may really be the end of it. In Japan, resident tax is separate: your city works it out from last year’s income and mails you a bill the following year, sometimes after you have already quit the job.

Unlike income tax, resident tax is not withheld in advance for a new arrival – your city calculates it from last year’s income and mails you a bill the following year. That bill can arrive after you have quit a job, or even after you have already left Japan.

You can pay it at a convenience store, by bank transfer, or with a mobile payment app. If reading Japanese mail is stressful, ask at your city office window when you go to handle other paperwork such as your residence registration – it is the most reliable way to be sure you understood the notice correctly.

Taxes and your visa are more connected than people think

Whether you have paid your taxes on time is checked during visa renewal reviews. Unpaid income tax, resident tax, or national health insurance premiums can lead to a shorter renewal period or, in serious cases, a denial.

Do not let a bill sit unpaid because the amount feels small or you are planning to leave soon anyway – see our national health insurance guide for the same rule applied to insurance premiums. A clean payment record also supports a future permanent residency application.

Declaring your income is not only about tax. The National Health Insurance reduction also cannot be judged until the city office knows your income. Without a declaration you are billed the full amount.

Frequently asked questions

Q. I only make 50,000 yen a month. Do I still pay tax?

If your monthly pay after social insurance is under 105,000 yen, income tax is not withheld in the first place in 2026. And if your yearly income stays under the walls (1.1 million yen for resident tax, 1.78 million yen for income tax), any amount that was withheld comes back through year-end adjustment or a tax return.

Q. When does resident tax start applying to me?

It is based on where you lived on January 1 and how much you earned the year before. If your prior year income was above roughly 1.1 million yen, resident tax applies the following year. Your very first year in Japan, you generally owe nothing because there is no prior-year income to tax.

Q. What is the Working Student Deduction?

It is an extra income deduction for students who work while studying, worth 270,000 yen off income tax (260,000 yen off resident tax). For 2026 income tax, it applies if your total income is 890,000 yen or less (a yearly salary of up to 1.63 million yen if salary is your only income), and you must claim it through year-end adjustment or your own tax return – it is not automatic.

Q. I am a student from China. Is my part-time pay tax-free?

If you study at a university or another school under Article 1 of the School Education Act, part-time pay that covers living costs and tuition is exempt under the Japan-China tax treaty. Hand the tax treaty notification form and a certificate of enrollment to each employer before your first payday. Japanese language school students are not covered. Part-time pay earned in Japan by students from India, Vietnam, Malaysia or Taiwan is not exempt (NTA Q&A).

Q. Is filing a tax return difficult? Is there English support?

The NTA’s online filing tool (kakutei shinkoku sho tosaku corner) just asks you to answer on-screen questions step by step. In-person tax office staff do not always have strong English support, so if your Japanese is limited, ask a teacher or friend to come with you.

Q. I have two jobs. Does year-end adjustment at one of them cover everything?

No. With two or more jobs, year-end adjustment alone is incomplete. Collect the withholding statement from every job and file your own tax return.

Q. Does unpaid tax affect my visa?

Yes. Your tax payment record is checked when your residence status is renewed. Unpaid tax can make renewal harder, so always pay by the deadline.

Summary

• Only two taxes matter for a student worker: income tax (national) and resident tax (local)
• Income tax is withheld monthly, but if your income is low, most of it is refunded
• 2026 walls: 1.1 million yen for resident tax, 1.78 million yen for income tax (income tax from the December adjustment), plus a 270,000 yen student deduction
• One job means year-end adjustment; two or more jobs means filing your own tax return (Feb 16 to Mar 15)
• Resident tax bills connect directly to your visa renewal – never ignore one

Official sources: NTA withholding tax table for 2026, monthly (Japanese) / NTA No. 1199 basic deduction (Japanese) / NTA No. 1410 employment income deduction (Japanese) / NTA No. 1175 working student deduction (Japanese) / NTA No. 2260 income tax rates (Japanese) / NTA No. 2884 withholding rates for non-residents (Japanese) / NTA tax return preparation corner / Immigration Services Agency guidelines on change of status and extension of stay (Japanese) / NTA Q&A: students’ part-time pay (Japanese) / NTA Q&A: students at vocational schools and treaty exemptions (Japanese) / NTA A3-11 tax treaty notification for students (Japanese) (checked 26 September 2026; the tax treaty section and reconstruction tax checked 2 October 2026)

Related guides

• If you want to know what your visa lets you earn on the side → Working and earning in Japan: visa rules and hourly pay
• If you want to know the premium and what you pay at the hospital → National health insurance: how to enroll and what it costs
• If you want to check what must be done within 14 days of arriving → Residence registration in Japan: what it is and when you need it

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