Is Japan's Resident Tax High? What I Learned Living in Japan

One of the things that surprised me after moving to Japan was the existence of the resident tax.

Of course, we also pay taxes in Korea, and paying taxes is a normal part of life in any country.

However, when I first saw my resident tax notice in Japan, I honestly remember thinking:

"Wait... there's another tax besides income tax?"

It came as quite a surprise to me.

In this article, I would like to share my experience as a Korean living in Japan and explain how Japan's resident tax system works.

What Is Resident Tax in Japan?

Resident tax is a local tax paid to prefectural and municipal governments in Japan.

One of its biggest characteristics is that it is calculated based on the previous year's income.

For example, the income you earn in 2025 will determine the resident tax you pay in 2026.

Because of this system, many people do not feel the burden of resident tax during their first year of work in Japan. However, from the second year onward, resident tax starts being deducted from their salary.

Many people are surprised when they suddenly notice:

"Why did my take-home pay decrease?"

How Is It Different from Korea?

Korea also has local taxes, but they are generally less noticeable in monthly salary statements.

In Japan, however, resident tax is deducted separately from income tax every month, making the tax burden feel more visible.

This is especially true in situations such as:

• The year after receiving a salary increase
• The year after changing jobs and earning more income
• The year after starting a side business or earning additional income

As a result, many people feel that:

"My income increased, but my take-home pay didn't increase as much as I expected."

My Personal Experience Living in Japan

When I first moved to Japan, I did not fully understand how the resident tax system worked.

Every time I looked at my payslip, I saw deductions for:

• Income tax
• Health insurance
• Pension contributions
• Resident tax

Seeing all of these deductions together made me feel:

"Taxes in Japan are higher than I expected."

Of course, I understand that these taxes support public services and social security systems.

However, if you see the amount before understanding how the system works, it can be quite surprising.

Why Does Resident Tax Feel So Expensive?

One reason resident tax feels expensive is because of the previous-year income system.

Even if your income decreases or you leave your job, resident tax is still calculated based on the income you earned during the previous year.

In addition, income from side businesses, blogging, YouTube, or freelancing can also affect the amount of resident tax you pay the following year.

Understanding how resident tax works is therefore an important part of financial planning for anyone living in Japan.

Conclusion

Compared to Korea, Japan's resident tax may feel expensive.

However, I believe the biggest difference is not necessarily the amount itself, but rather becoming familiar with the system of paying taxes based on the previous year's income.

As I learned more about how resident tax works, I gradually became less anxious about it.

Taxes can be complicated, but understanding the system little by little can help with budgeting and future financial planning.

I hope to continue sharing what I learn about money, taxes, and daily life in Japan through this blog 😊

Checking Your Resident Tax Online

You can also check your resident tax information online using Japan's government service called Myna Portal.

After logging in with your My Number Card, you can access information related to your income and resident tax through the "My Information" section.

Please note that the availability of information may vary depending on your local municipality.

For more information, please visit the Myna Portal official website.