Japan Retirement Pay Tax Calculator (2026 Tax Year)

How the tax on retirement pay is calculated

1. The retirement income deduction (退職所得控除額) comes from your years of service, with any fraction of a year rounded up to a full year. For 20 years or less it is ¥400,000 × years (at least ¥800,000). Beyond 20 years it is ¥8 million + ¥700,000 × (years − 20).
2. Half of (retirement pay − deduction) is the taxable retirement income, rounded down to ¥1,000. For non-officers with 5 years of service or less, the part above ¥3 million after the deduction is not halved; for officers with 5 years or less, none of it is halved.
3. The income tax quick-calculation table (5–45%) is applied to the taxable retirement income and multiplied by 102.1% for the special reconstruction income tax. Resident tax is 6% municipal plus 4% prefectural, withheld at source by the payer of the retirement pay.
4. If you do not submit the “Application for Retirement Income Receipt” (退職所得の受給に関する申告書), the tax cannot be worked out with the deduction, so 20.42% of the payment is withheld. You then settle the difference in a tax return.

These figures assume you are a resident of Japan. If you have left or are about to leave Japan, or may be treated as a non-resident, different rules can apply that this calculator does not cover; check with the National Tax Agency or a tax professional before relying on the result.