US Citizens Working in Japan
See what you actually take home after US and Japan taxes: whether you're already working abroad or planning a move.
Here's what matters most for US citizens working in Japan:
- •Residence tax adds 10% on top of national income tax
Calculate your take-home pay
See your real take-home pay with currency conversion and cost of living adjustments.
Who taxes you?
As a US citizen working in Japan, you're subject to taxation by both countries. The US taxes citizens on worldwide income, but the Foreign Earned Income Exclusion (FEIE) can exclude up to $132,900 of foreign earned income in 2026 if you meet the 330-day physical presence test. Japan taxes its tax residents on their worldwide income, with progressive rates up to 45%, plus residence tax of 10%. Newer arrivals get an exception: if you are not a Japanese national and have lived in Japan for 5 years or less in the past 10, you are a non-permanent resident, and your foreign income is taxed only if it is paid in Japan or sent to Japan. Pay for work done in Japan is taxed either way. The US-Japan tax treaty provides foreign tax credits to prevent double taxation.
Common pitfalls
- Japanese tax rates are high, with top marginal rate of 45% plus 10% residence tax
- Residence tax adds 10% on top of national income tax
Is there a US-Japan tax treaty?
Yes. The US-Japan income tax treaty is in force, and foreign tax credits cover what it does not.
Getting paid in Japanese Yen
Salaries in Tokyo are paid in Japanese Yen (JPY). A 100,000 US-dollar salary is roughly 15,380,000 JPY at current rates. That matters twice over: your US return is always filed in dollars, so the rate on each payday feeds straight into what you report, and a currency that moves against the dollar changes what the same nominal salary is worth to you without your pay changing at all.
Frequently asked questions
Not on the same income: a treaty is in force. You pay the higher of the two rates, not both.
The Japanese Yen (JPY). A 100,000 US-dollar salary is about 15,380,000 JPY at current rates. Your US tax is always calculated in dollars, so the exchange rate on the day you are paid feeds directly into what you report, and into how far the same nominal salary goes in Tokyo.
Japan has a progressive income tax system with rates from 5% to 45%, plus residence tax (住民税) of approximately 10% levied by prefectures and municipalities. Combined rates can reach up to 55%. You can claim foreign tax credits on your US return to offset taxes paid to Japan.
Residence tax (住民税) is a local tax in Japan that adds approximately 10% on top of national income tax. It's levied by prefectures and municipalities and applies to residents regardless of nationality.
Official resources
Primary sources:
Calculate your take-home pay
See your real take-home pay with currency conversion and cost of living adjustments.
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