Take-Home Pay by Salary in Japan, FY2026¥5 Million Leaves About ¥3.93 Million — With Tax and Social Insurance Breakdown

“How much is actually left from a ¥5 million salary?” It comes up in every job listing and every raise. In Japan, an employee’s pay has social insurance (health, pension, employment and more) and taxes (income tax and resident tax) taken out.

This article calculates take-home pay for salaries of ¥2–20 million using FY2026 contribution rates and the new income-tax deductions that apply from 2026. The figures use the same calculation as the Pocho Lab take-home pay calculator, where you can enter your own situation (age 40+, spouse, dependents).

1. The short version: ¥5 million leaves about ¥3.93 million

• A ¥5 million salary (single, under 40) leaves about ¥3.93 million, or ¥328,000 a month — about 79% of the salary.
• The higher the salary, the lower the share you keep: about 81% at ¥3 million, 73% at ¥10 million and 65% at ¥20 million.
• Income tax is a little lower for 2026. Basic and other deductions were raised, cutting income tax by about ¥28,000 at ¥5 million and ¥37,000 at ¥6 million. Monthly withholding still uses the old amounts for now; the difference comes back at year-end adjustment^[1].

2. Take-home pay by salary (single, under 40)

Employees with no bonus (paid evenly over 12 months) and no dependents. Social insurance uses the Japan Health Insurance Association’s national average rate.

Social insurance flattens at higher salaries because the pension premium has a ceiling (monthly pay above ¥650,000 is treated as ¥650,000). Income tax takes over instead.

3. What is taken out, and how much

Deductions from an employee’s pay and their FY2026 rates (employee share):

The key point: social insurance alone takes about 15% of salary — about ¥740,000 at ¥5 million, more than twice income and resident tax combined (about ¥330,000). When pay feels heavily “taxed”, social insurance is often the bigger part.

4. How much does the 2026 reform cut income tax?

The FY2026 tax reform raised the basic deduction and the minimum employment-income deduction for 2026 income. According to the National Tax Agency, the basic deduction is now ¥1.04 million for total income up to ¥4.89 million, ¥670,000 up to ¥6.55 million and ¥620,000 up to ¥23.5 million (previously ¥580,000–950,000). The minimum employment-income deduction rose from ¥650,000 to ¥740,000^[1].

Income tax under the old (2025) deductions versus the 2026 ones (single, under 40):

The saving peaks around ¥5–6 million because that is where the basic deduction rose most (for example, from ¥680,000 to ¥1.04 million).

Note that monthly withholding stays at the old level during 2026. The agency says the 2026 difference is settled at year-end adjustment^[1], so many people will see it in their December pay.

5. From age 40, and with family

From 40 the long-term care premium is added and take-home falls slightly. Spouse and dependent deductions lower tax instead (social insurance doesn’t change).

The dependent is a general dependent aged 16 or over (children under 16 don’t qualify for the dependent deduction). The spouse deduction applies only if the spouse’s income is below a threshold.

6. Why raises add less than you expect

How much take-home rises with a ¥1 million raise (single, under 40):

As salary rises, the amount kept from a ¥1 million raise falls from about ¥763,000 to ¥532,000, because income tax is progressive. Once salary passes the pension ceiling (about ¥7.8 million), social insurance stops growing, so the gain briefly rises around ¥9 million.

7. Caveats

• Bonuses change things slightly. Social insurance is calculated separately on monthly pay and bonuses, with different ceilings. These figures assume no bonus.
• Health insurance rates vary. The association’s rate differs by prefecture, and large companies’ insurance societies are often cheaper.
• Resident tax follows last year’s income. First-year graduates pay almost none; these figures assume the same salary continued.
• Deductions lower tax further. Life insurance, iDeCo, mortgage credits and furusato nozei aren’t included. Your furusato nozei limit is in the furusato simulator.

8. FAQ

Q. What’s the difference between salary, gross and take-home? Salary (gross) is everything the employer pays, including bonuses, before tax and social insurance. Take-home is what actually reaches your account after social insurance, income tax and resident tax. Job listings usually quote gross pay, so budget with take-home.

Q. Do bonuses raise or lower take-home pay? For the same total salary, not by much. Social insurance is calculated separately on monthly pay and bonuses, but at the same rates. High earners see small differences depending on the pension ceilings (¥650,000 a month for pay, ¥1.5 million per bonus).

Q. Why is take-home higher in the first year after graduating? Resident tax is based on the previous year’s income, so if you were a student with little income, you pay almost none in year one. It starts in June of year two — which is why many people feel “my pay went up but take-home went down”.

Q. What if I have side income? More side income raises income and resident tax. Your health insurance and pension premiums as an employee are, in principle, based on your company pay only. If side income exceeds ¥200,000 a year you may need to file a tax return.

Q. Can I increase my take-home pay? The basic tool is deductions. iDeCo (individual defined-contribution pension) contributions are fully deductible, and there are deductions for life insurance and medical expenses, plus furusato nozei. Furusato nozei is really prepaying tax in exchange for gifts, so staying within your limit matters.

9. Summary

• FY2026 take-home is about ¥3.93 million at ¥5 million (¥328,000 a month) and ¥7.27 million at ¥10 million (¥606,000 a month).
• The biggest deduction is social insurance, about 15% of salary.
• For 2026, higher deductions cut income tax by around ¥30,000 at ¥5–6 million; the difference returns at year-end adjustment.
• For your own situation, enter your salary in the take-home pay calculator for the full breakdown.

Estimates based on rules as of 20 October 2026; not a guarantee of any individual’s tax.

References

References

1. [1]National Tax Agency, “Raising the income-tax basic deduction under the FY2026 tax reform” (Japanese). NTA (PDF) ↩
2. [2]National Tax Agency, “No.2260 Income tax rates” (law as of 1 Apr 2026, Japanese). NTA ↩
3. [3]Kaiketsu-J, on FY2026 Japan Health Insurance Association rates, care and child-support levies (29 Jan 2026, Japanese). Article ↩
4. [4]Japan Pension Service, “Employees’ pension premium table” (Japanese). Japan Pension Service ↩
5. [5]Ministry of Health, Labour and Welfare, “Employment insurance rates for FY2026” (Japanese). MHLW (PDF) ↩