Work & incomeJapan
Tax on pay in Japan
How much of my salary never arrives?
Japan's tax on pay is 22.65 % — #11 of 37 countries on the atlas (lower is better). Period 2025.
22.65%
Source: OECD Taxing Wages + OECD Tax Database
Of every $100 of gross pay at the average wage in Japan, about $23 goes to income tax and employee social contributions.
Among 37 countries
- Rank
- #11 of 37
- lower is better
- Ranked behind
- 70 %
- 26 of 37 countries
vs median 24.93 %: −2.28 pp (better)
The neighbourhood
| # | Country | Tax on pay | vs Japan |
|---|---|---|---|
| 9 | Israel | 21.43 % | −1.21 pp |
| 10 | Sweden | 22.64 % | −0.01 pp |
| 11 | Japan | 22.65 % | — |
| 12 | United Kingdom | 23.14 % | +0.49 pp |
| 13 | Estonia | 23.25 % | +0.60 pp |
Income tax plus employee social contributions as a share of gross pay, for a single person at the average wage (OECD). The share of a salary that never arrives.
How to read this figure
The OECD net personal average tax rate: income tax plus the EMPLOYEE’s social contributions as a share of gross wage earnings, for a single person with no children at exactly the average wage. This is the rate you can apply to a salary. It is deliberately smaller than the tax wedge on the same page, which measures a wider bite (it adds the employer’s contributions) over a wider base (total labour cost) — two honest answers to two different questions.