Resident Tax & Tax Refunds in Japan for Foreigners
- Foreigners working in Japan also have an obligation to pay income tax and resident tax.
- If you overpaid income tax, you may get some of it back as a "refund" when you meet the conditions.
- We explain the difference between year-end adjustment and a tax return, and who each applies to.
- We explain how resident tax works (based on last year's income, and when it's paid).
Foreigners working in Japan must pay income tax and resident tax. This article explains, in plain terms, how tax "refunds" work, the difference between year-end adjustment and a tax return, and how resident tax works. For the actual step-by-step filing procedure and required documents, see our sister site "Zainichi Money Navi."
① What Is a Tax Refund?
A "refund" means getting back income tax you overpaid during the year. For employees, an estimated amount of income tax is withheld from each paycheck, and the difference is settled through year-end adjustment or a tax return. If certain deductions weren't reflected, the overpaid portion may come back to you.
When does a refund tend to happen?
- You resigned mid-year and didn't receive year-end adjustment
- You had high medical costs in a year (possible medical-expense deduction)
- You didn't declare deductions such as life or earthquake insurance premiums
- You send money to family overseas (possible dependent deduction)
- Tax was withheld from a pension lump-sum withdrawal you received on leaving Japan
Refunds are paid into the bank account you specify, so open one in advance if you don't have it yet.
The pension lump-sum withdrawal you receive on leaving Japan has tax withheld, so some of it may come back to you later.
② Year-End Adjustment vs. Tax Return
Both settle your income tax for the year, but they differ in who does it and who it applies to.
| Year-end adjustment | Tax return | |
|---|---|---|
| Who handles it | Your employer | You (yourself) |
| Mainly for | Employees with one salary source | People with multiple incomes or various deductions, etc. |
| Rough timing | Year-end (around December) | The filing period the following year |
If you have a single salary source and year-end adjustment is done, you generally don't need to file a tax return. On the other hand, if you have side income, want a medical-expense or home-loan deduction, resigned mid-year, or are a freelancer or self-employed, you may be able to settle it through a tax return. Our sister site's guide is handy for checking whether this applies to you.
▶ How to file a tax return: documents, e-Tax and filing-software comparison (Zainichi Money Navi)
③ How Resident Tax (Jumin-zei) Works
Resident tax is a local tax calculated by your municipality based on the previous year's income. Employees have it deducted from their salary (special collection); the self-employed pay it themselves (ordinary collection). It is generally paid from June to May of the following year.
While income tax applies to the current year's income, resident tax applies to the previous year's income — a key difference. Because of this, a resident-tax bill may arrive the year after you resign or leave Japan.
| Annual income | Resident tax (rough yearly amount) |
|---|---|
| ¥2M | Approx. ¥90,000 |
| ¥3M | Approx. ¥180,000 |
| ¥5M | Approx. ¥330,000 |
📊 税金をもっと深く（マネーナビ）📊 More on taxes (Money Navi)📊 税务专题（Money Navi）📊 Thuế chi tiết hơn (Money Navi)
住民税の計算例・帰国時の一括徴収・医療費控除などの深掘りは、お金特化の姉妹サイト「在日マネーナビ」が詳しいです。For resident-tax calculations, lump-sum collection on leaving Japan, and medical-expense deductions, our money-focused sister site Zainichi Money Navi has the deeper guides.如需住民税计算例·回国时一括征收·医疗费扣除等深度内容，请见金融特化的姊妹站「在日マネーナビ」。Để xem ví dụ tính thuế cư trú, thu một lần khi về nước, khấu trừ chi phí y tế — trang đồng hành tài chính Zainichi Money Navi có hướng dẫn chi tiết.
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