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Japan edition2026 national + resident tax rates

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Featured · Japan

How Retirement Payouts Are Taxed in Japan (退職金)

A ¥10,000,000 retirement payout after 15 years of service owes just ¥304,652 in tax, about 3%. Taxed as ordinary salary instead, the same amount would owe roughly ¥2,801,044, over nine times more. Here is exactly how the retirement income deduction (退職所得控除) and the halving rule (2分の1課税) combine to produce that gap, with worked examples at five different service lengths.

21 July 2026 · 9 min read

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