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Paying in taxes in Japan

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Paying in taxes in Japan

Postby fielle » Fri 11.21.2008 10:47 am

I have a good chance of getting a job in Japan for the next fiscal year (starting April), and I was trying to figure out what the average tax burden is. I understand that there's some stratification of taxing depending on income levels, and some extra complication due to being an American citizen. I think I'll also provided housing, which I hear also may make things worse.

So, anybody have something for me to be able to get some sort of idea as to how much I'll be paying to various governments in taxes?
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Re: Paying in taxes in Japan

Postby Harisenbon » Sat 11.22.2008 3:37 am

As taxes depend on your income, the area in which you live in as well as your living situations, I don:t think it:s really possible to give a generic answer for about how much you will be paying unless we know specifics about your employment and living situations.

Also keep in mind that besides national and local tax, there is social security and health care that you will also be paying for.

This is something that you should probably ask your employer.
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Re: Paying in taxes in Japan

Postby richvh » Sat 11.22.2008 5:34 am

This is something that you should probably ask your employer.

Or a tax professional.
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Re: Paying in taxes in Japan

Postby Mukade » Sun 11.23.2008 7:08 am

One nice thing about Japan is that, if you work for a company, taxes will be taken care of for you. You don't have to go through the tedious process of figuring out, filling out and filing your own taxes like you do in the States (unless you're doing 'freelance' work or are self-employed).

As far as the complications of being an American citizen - well, yes, you DO have to still file your taxes in the US. The one good thing is that, as long as you're not earning more than $80,000 here in Japan, your tax return in the US will always be $0.

It's kind of a pain in the @ss, however, considering that you have to sit down for an hour and locate paperwork, fill out forms and send them off in the mail - all for nothing.

I'll be honest - I've gone several years without filing my taxes in the US before just sitting down and doing them all in one shot. :?
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Re: Paying in taxes in Japan

Postby furrykef » Sun 11.23.2008 12:35 pm

Mukade wrote:It's kind of a pain in the @ss, however, considering that you have to sit down for an hour and locate paperwork, fill out forms and send them off in the mail - all for nothing.


I once had to pay $3000 in taxes on my birthday. Being a semi-pro poker player is tough at times. (I'm not one anymore, though.)
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Re: Paying in taxes in Japan

Postby Flik » Mon 12.01.2008 12:37 am

I've wondered how Japanese taxes compare to those in the US. For those who have lived in both countries, are they higher, lower, or about the same?
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Re: Paying in taxes in Japan

Postby Mukade » Mon 12.01.2008 7:54 am

Flik wrote:I've wondered how Japanese taxes compare to those in the US. For those who have lived in both countries, are they higher, lower, or about the same?


Taxes can be a lot higher in Japan, but you have to remember that we have a lot of social welfare programs here in Japan that don't exist in the States (like the equivalent of Medicare, etc.).

And now that I mention that, I realize that I'm paying a lot of tax, but rarely go to the doctor. Man, I should visit more often! :|
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Re: Paying in taxes in Japan

Postby keatonatron » Mon 12.01.2008 9:56 am

I think income tax is usually about 20%, isn't it? (Compared to around 10% in the US... for low incomes anyway)

Of course, I only pay $10 a month for national healthcare. It doesn't make going to the doctor free, but it makes it a LOT cheaper. A few weeks ago when my knee was bothering me, I got two X-rays for $4 each :shock:

Sales tax is %5. I think land tax is really quite expensive, but that doesn't affect me since I legally can't own land :cry:
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Re: Paying in taxes in Japan

Postby Harisenbon » Mon 12.01.2008 8:10 pm

keatonatron wrote:Of course, I only pay $10 a month for national healthcare. It doesn't make going to the doctor free, but it makes it a LOT cheaper. A few weeks ago when my knee was bothering me, I got two X-rays for $4 each :shock:


Yeah, it's around 1000 yen here as well. You know I'm getting spoiled when I get a 400 yen xray, and think to myself "4 dollars!? what a waste!" ;)

Where my niece lives, all elementary school students don't get billed for any doctor visits or hospitalizations. Junior high students don't get billed for any hospitalizations.

This was a god-send when my niece got hit by a car last month and was hospitalized for a month.
Yay socialized healthcare!
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Re: Paying in taxes in Japan

Postby chikara » Mon 12.01.2008 8:44 pm

keatonatron wrote:I think income tax is usually about 20%, isn't it? (Compared to around 10% in the US... for low incomes anyway)

Of course, I only pay $10 a month for national healthcare. ......

*says in a Yorkshire accent* You are lucky :)

We have a sliding income tax rate but as an average I pay ~30% in income tax. Every extra dollar I earn is taxed at 40%. I also pay a national healthcare levy (Medicare Levy) of 1.5% of my income but, because of my income level, I still have to have private hospital insurance or the government will charge me another 1% levy.

We can't insure against doctors expenses and Medicare only pays for a "standard fee" which very few doctors actually charge. When I see my GP I usually have to pay at least $22 on top of what Medicare pays. Same applies to X-Rays and other such diagnostic services.
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Re: Paying in taxes in Japan

Postby keatonatron » Tue 12.02.2008 1:05 am

chikara wrote:We have a sliding income tax rate but as an average I pay ~30% in income tax.


Wow.... either you live under rule of an evil medieval king, or you make a lot of money :D
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Re: Paying in taxes in Japan

Postby chikara » Tue 12.02.2008 1:40 am

keatonatron wrote:Wow.... either you live under rule of an evil medieval king, or you make a lot of money :D

Unfortunately neither are true, but then "a lot of money" is relative. The poeple that earn "a lot of money" in this country pay 45% tax ;)

But hey, the first $6K I earn is tax free :mrgreen:
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Re: Paying in taxes in Japan

Postby keatonatron » Tue 12.02.2008 10:09 am

chikara wrote:Unfortunately neither are true


So you wouldn't mind living under rule of an evil medieval king then? :lol:
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Re: Paying in taxes in Japan

Postby chikara » Tue 12.02.2008 10:44 pm

keatonatron wrote:So you wouldn't mind living under rule of an evil medieval king then? :lol:

Not at all. It might be quite interesting having a medieval king and I might be able to become one of his evil henchmen :twisted:
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Re: Paying in taxes in Japan

Postby Mukade » Wed 12.03.2008 12:06 am

keatonatron wrote:I think land tax is really quite expensive, but that doesn't affect me since I legally can't own land :cry:


Why not? I legally own the land I live on... :?:
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