Japan Retirement Allowance Tax Calculator (Taishokukin)
Work out the income tax and resident tax on a retirement allowance in Japan: the deduction by years of service, the 1/2 rule and the take-home amount.
This assumes you submitted the declaration on receipt of retirement income (退職所得の受給に関する申告書); without it 20.42% is withheld and settled in the tax return. Fractions of a year of service count as a full year.
What it does
In Japan a retirement allowance is taxed separately from salary and lightly: the retirement income deduction is 400,000 yen for each year of service up to 20 years and 700,000 yen for each year after that, and only half of what is left is taxed. Income tax uses the normal rates from 5% to 45% plus 2.1% reconstruction tax, and resident tax is 10%.
How to use it
- Type the retirement allowance.
- Type the years of service and tick the boxes that apply.
- Read the deduction, the taxable income, the taxes and the take-home amount.
The arithmetic runs in your browser. Nothing you type is sent anywhere and nothing is stored, so you can use these with real numbers.
Frequently asked questions
How much tax on 20 million yen after 30 years?
The deduction is 8 million + 700,000 × 10 = 15 million yen. Half of the 5 million left, 2.5 million, is taxed: 155,702 yen of income tax and 250,000 of resident tax, so 19,594,298 yen are left.
How is the retirement income deduction calculated?
400,000 yen × years of service for up to 20 years (at least 800,000), and 8 million + 700,000 × (years − 20) for more. After 38 years it is 20.6 million yen.
Is there a rule for short service?
Yes. With 5 years or less, officers get no halving, and other employees are halved only on the first 3 million yen above the deduction; 10 million after 5 years pays 1,540,822 yen of tax in total.
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