Do you pay resident tax in your first year in Japan?

Last checked: 2026-11-06

If you had no address in Japan on January 1, you generally owe no resident tax for that fiscal year, so your first bill usually comes in the June after your first January 1 in Japan. The tax is based on the previous calendar year's income, which is why it can feel like it arrives late.

The rule that decides everything

Resident tax goes to the municipality where you had your address on January 1. It is charged on your income from January to December of the year before. Moving later in the year does not split the bill. Your old city taxes you for that whole year, and your new city starts the next June.

When your first bill arrives

These dates are our own examples, using the January 1 rule.

You arrive	First January 1 in Japan	First tax is based on	First payment
February 2026	January 1, 2027	2026 income	June 2027
December 2026	January 1, 2027	2026 income, with only one month of it in Japan	June 2027
January 2, 2027	January 1, 2028	2027 income	June 2028

How the bill is built

The yearly tax has three parts. These are the Tokyo ward figures for fiscal 2026. Other municipalities may differ.

Income-based part: 10% of taxable income, which is 6% ward tax and 4% metropolitan tax.
Per capita part: 4,000 yen.
Forest environment tax: 1,000 yen.

Worked example, fiscal 2026 in a Tokyo ward

This is our own calculation for one single employee with a 5,000,000 yen salary in 2025. The 720,000 yen social insurance figure is our assumption, not a real amount. The result is a rough guide, and your notice is the real figure.

Step	Amount
Salary income after the employment deduction (National Tax Agency example)	3,560,000 yen
Less basic deduction used by Ota City for fiscal 2026	430,000 yen
Less social insurance (assumed)	720,000 yen
Taxable income	2,410,000 yen
10% of taxable income	241,000 yen
Less adjustment deduction, at the 2,500 yen minimum	2,500 yen
Income-based part	238,500 yen
Add per capita part and forest tax	5,000 yen
Yearly total	243,500 yen, or about 20,300 yen a month over 12 months

That is why take-home pay can drop in your second year. The rates for 2026 income may differ, and we did not check them.

How you pay

Method	Who	When
Special collection	Most employees	Taken from salary, June to the next May
Ordinary collection	People who pay directly	Notice in June, then four payments, in June, August, October and January in Higashi-Hiroshima

If you leave Japan or your job

You still owe the year's tax. If you had an address on January 1, leaving later does not cancel that year's tax. Higashiosaka adds that if you leave between January 2 and the date the notice is issued, you are also taxed for the following fiscal year.
Name a tax agent. If you cannot receive notices or pay from abroad, cities tell you to appoint a tax agent before you go. Higashiosaka says this does not need to be a relative.
Leaving a job. Special collection stops. Saitama says leaving between June 1 and December 31 means ordinary or lump-sum collection, and leaving between January 1 and April 30 means lump-sum collection. Higashiosaka says a lump sum is generally required for January 1 to May 31. Dates differ by city, so ask yours.

Pension refund claimants should also read our lump-sum withdrawal page, and health insurance is charged on a similar previous-year basis, as our National Health Insurance page explains. Some cities also use your municipal tax to set daycare fees.

What we could not confirm

Income earned abroad. We did not find an official page on how foreign income before your arrival counts. Ask your city's tax office.
Tax-free limits. Low-income limits vary by municipality, and we did not check them.

This page is general information, not tax advice. Your municipal tax office can explain your own notice.