Key takeaways
- In Japan you are a resident if you have a domicile (jūsho) in Japan or have had a residence (kyosho) there for one year or more. People who arrive for a job expected to last a year or more are usually treated as domiciled from arrival.
- Foreign residents who have lived in Japan 5 years or less in the last 10 years are non-permanent residents: taxed on Japan-source income plus foreign income paid in or remitted to Japan. Others are taxed on worldwide income.
- Rates: national income tax 5%–45% plus a 2.1% reconstruction surtax, plus 10% local inhabitant tax – a top combined rate of about 55.9%.
Last reviewed: October 2026
Japan has three categories of taxpayer, and the middle one – the non-permanent resident – makes the first five years attractive for expatriates with foreign investments. This guide explains how residence is determined, how to register and how to obtain a residence certificate in 2026.
Japan tax residency – key figures (2026)
| Item | Rule |
|---|---|
| Resident | Domicile in Japan, or residence for ≥ 1 year |
| Non-permanent resident | Non-Japanese national, domiciled/resident ≤ 5 years in the past 10 |
| Non-permanent scope | Japan-source income + foreign income paid in/remitted to Japan |
| Permanent resident scope | Worldwide income |
| National income tax | 5%–45% (+ 2.1% reconstruction surtax) |
| Local inhabitant tax | 10% flat (assessed on prior-year income) |
| Exit tax | Financial assets ≥ JPY 100 million, resident ≥ 5 of the last 10 years |
| Digital nomad visa | "Designated activities", up to 6 months, income ≥ JPY 10 million |
The three taxpayer categories
- Non-resident – taxed only on Japan-source income.
- Non-permanent resident – a foreign national resident for five years or less within the past ten. Foreign-source income is only taxed when paid in Japan or remitted there.
- Permanent resident (for tax) – taxed on worldwide income. This tax category has nothing to do with immigration "permanent residence".
Domicile is a facts-based concept: your centre of life, home, family, job. Arriving on a work contract of one year or more creates a presumption of domicile from day one.
How to become resident in Japan
- Obtain a status of residence – work visa (e.g. Engineer/Specialist in Humanities/International Services, Highly Skilled Professional), business manager, spouse, etc. Short-term visitors and digital nomads on the designated-activities visa cannot register as residents.
- Receive your residence card (zairyū card) at the airport or immigration office.
- Register your address at the municipal office within 14 days of moving in. You receive your My Number (individual number).
- Enrol in health insurance and pension – national schemes or your employer's.
- Inhabitant tax is assessed by the municipality where you live on 1 January, based on the previous year's income.
Tax residence certificate
Residents can request a certificate of residence (kyojūsha shōmeisho) for treaty purposes from their local tax office under the National Tax Agency, with their My Number and identification.
Example: A French engineer moves to Tokyo in April 2026 on a three-year contract. She is domiciled in Japan from arrival and is a non-permanent resident. Her Tokyo salary is fully taxed; dividends on her French portfolio are taxable in Japan only if remitted, while France keeps its treaty withholding rights.
Leaving Japan
Before departure you appoint a tax agent or file a final return, and you notify the municipality. If you hold JPY 100 million or more in financial assets and were resident for 5 of the last 10 years, the exit tax on unrealised gains may apply.
Frequently asked questions
When do I become a tax resident in Japan?
When you have a domicile in Japan or have lived there for one year or more. A work assignment expected to last a year or more usually makes you resident from arrival.
What is a non-permanent resident in Japan?
A foreign national resident in Japan for five years or less in the past ten. They are taxed on Japan-source income and foreign income paid in or remitted to Japan.
What is the top tax rate in Japan?
45% national income tax plus the 2.1% reconstruction surtax and 10% inhabitant tax, about 55.9% combined.
Does Japan have an exit tax?
Yes, on unrealised gains for departing residents with financial assets of JPY 100 million or more who were resident at least 5 of the last 10 years.
Related guides
Sources
- PwC Worldwide Tax Summaries – Japan: Residence
- National Tax Agency (nta.go.jp); Immigration Services Agency of Japan
This guide is general information, not personalised tax advice.
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