Relocation tax guideMoving to Japan: Taxes for Expats 2026
Japan taxes residents on income at national rates up to 45% (plus a 2.1% surtax and ~10% local tax), with listed-share gains at 20.315% and inheritance tax up to 55%. Non-Japanese nationals get Non-Permanent Resident status for their first 5 of 10 years: foreign income is taxed only if paid in or remitted to Japan. Residency starts with a domicile or one year's residence.
Japan is unusual among major economies in offering new foreign arrivals a remittance-style break - but only for a window, and against a backdrop of some of the world's highest inheritance tax. This guide explains Non-Permanent Resident status, how residency begins, the inheritance-tax trap for longer stays, and the headline rates.
Japan: key tax rates
| Tax | Rate | Source |
|---|---|---|
| Corporate income tax | 23.2%National corporate tax rate; local inhabitant and enterprise taxes apply in addition (effective rate ~30% for large companies) | PwC Worldwide Tax Summariesas of 2026-01-13 |
| Top personal income tax | 45%Top national rate plus a 2.1% surtax; local inhabitant tax (~10%) applies in addition | PwC Worldwide Tax Summariesas of 2026-01-13 |
| VAT / GST (standard) | 10%Consumption tax (8% reduced rate on food and beverages) | PwC Worldwide Tax Summariesas of 2026-01-13 |
| Capital gains | 20.315%Listed-stock sales (including surtaxes); gains on real property up to 39.63% | PwC Worldwide Tax Summariesas of 2026-01-13 |
| Inheritance / wealth tax | Up to 55%Inheritance and gift tax headline rate; varies by amount | PwC Worldwide Tax Summariesas of 2026-01-13 |
The Non-Permanent Resident (NPR) status regime
Applies to non-Japanese nationals who have had a domicile or residence in Japan for 5 years or fewer within the last 10 years.
A Non-Permanent Resident is taxed on Japan-source income and on foreign-source income only to the extent it is paid in Japan or remitted to Japan - foreign income kept abroad and not remitted is not taxed. Once you have been resident for more than 5 of the last 10 years, you become a permanent resident for tax purposes and are taxed on worldwide income.
- Foreign-source income is taxed only if paid in or remitted to Japan during the NPR window.
- Applies to non-Japanese nationals for the first 5 years (within any 10-year period) of residence.
- After 5 years, you are taxed as a permanent resident on worldwide income.
- Remitting foreign funds to Japan can bring otherwise-untaxed foreign income into charge.
Source: PwC Worldwide Tax Summaries - Japan (as of 2026-06-24).
| Item | Non-Permanent Resident | Permanent resident (tax) |
|---|---|---|
| Foreign income kept abroad | Not taxed in Japan | Taxed (worldwide) |
| Foreign income paid in or remitted to Japan | Taxed | Taxed |
| Applies for | First 5 of the last 10 years (non-nationals) | After 5 years of residence |
Source: PwC Worldwide Tax Summaries - Japan (as of 2026-06-24).
When you become a tax resident
You are a Japanese resident if you have a domicile (jusho) in Japan or have lived there continuously for at least one year. Non-Japanese nationals resident for 5 or fewer of the last 10 years are Non-Permanent Residents; beyond that they become permanent residents for tax and are taxed on worldwide income.
Source: PwC Worldwide Tax Summaries - Japan (Residence) (as of 2026-06-24).
Non-Permanent Resident status
For their first years in Japan, non-Japanese nationals are Non-Permanent Residents: Japan taxes their Japan-source income normally but reaches their foreign-source income only to the extent it is paid in or remitted to Japan. Foreign salary, investment income, or gains kept offshore and not remitted stay outside Japanese tax during this window.
The window is the first 5 years (measured within any 10-year span). After that, you are a permanent resident for tax and taxed on worldwide income. Because remittances can trigger tax, how and when you move money into Japan matters while you are an NPR.
Watch the inheritance tax
Japan's inheritance and gift tax is among the highest in the world, reaching 55%, and its reach can extend to worldwide assets depending on the heir's and the deceased's residence and nationality. Long-term foreign residents in particular can find worldwide estates exposed. This is one of the most important - and most overlooked - planning points for anyone settling in Japan for the long term.
Before you move: what to weigh
- The NPR foreign-income break lasts only the first 5 of 10 years and applies to non-Japanese nationals.
- Remitting foreign funds to Japan can bring otherwise-untaxed foreign income into charge while you are an NPR.
- Japan's inheritance tax (up to 55%) can reach worldwide assets for longer-term residents - plan early.
- US citizens remain taxable by the US on worldwide income; the Japan-US treaty and foreign-tax credits then apply.
Get this right for your situation
Cross-border tax turns on your specific facts. Find a tax professional who works with people moving to Japan.
Does Japan tax foreign income?
It depends on your residence status. Non-Permanent Residents - non-Japanese nationals in their first 5 of 10 years - are taxed on foreign income only to the extent it is paid in or remitted to Japan. After 5 years, you become a permanent resident for tax and are taxed on worldwide income.
What is Non-Permanent Resident status in Japan?
A tax status for non-Japanese nationals resident for 5 or fewer of the last 10 years. They pay Japanese tax on Japan-source income and on foreign income only if it is paid in or remitted to Japan; foreign income kept abroad is untaxed during the window. Remittances can trigger tax.
When are you a Japanese tax resident?
When you have a domicile in Japan or have lived there continuously for at least a year. Non-nationals are then Non-Permanent Residents for the first 5 of 10 years, and permanent residents for tax thereafter - taxed on worldwide income. Confirm your history, as the count drives the outcome.
Informational only, not tax advice. Cross-border tax depends on your personal circumstances and changes often; figures are dated to their sources. Confirm your position with a qualified professional before moving or filing.
Important disclaimer
Informational only — not tax advice. This page summarises publicly available information about tax in Japan as of July 2026. Tax laws change, individual circumstances vary, and the application of any rule depends on your specific facts.
TaxProsRated does not provide tax, legal, accounting, or financial advice. Before acting on anything you read here, consult a qualified tax professional licensed in your jurisdiction (in the US: CPA, Enrolled Agent, or attorney; in the UK: CIOT- or ATT-qualified adviser; in Australia: TPB-registered tax agent; elsewhere: a locally-licensed equivalent). TaxProsRated, its operators, and its contributors disclaim all liability for action taken in reliance on this page.