The UK keeps more, but by less than Japan's reputation suggests, and the gap narrows with income: 6.8 points at the equivalent of £50,000, 2.0 points at £120,000.
The number that catches people out is not in the table. Japanese resident tax is charged on last year's income, so your first year in Japan is artificially cheap and your second year drops on an unchanged salary.
Gap at £50,000
6.8 pts
79.0% against 72.3%
Gap at £120,000
2.0 pts
narrowing as you earn
Resident tax
A year late
year two is the real number
See a Japanese package broken into its separate lines.
Open the Japan take-home calculatorCloser than the reputation suggests
The share of gross kept after national income tax, the 2.1% reconstruction surtax, resident tax and employee social insurance. Independent of the exchange rate.
| Equivalent salary | UK keeps | Japan keeps | Gap |
|---|---|---|---|
| £30,000 | 83.7% | 76.8% | 6.9 pts |
| £50,000 | 79.0% | 72.3% | 6.8 pts |
| £80,000 | 71.2% | 66.4% | 4.8 pts |
| £120,000 | 63.5% | 61.4% | 2.0 pts |
| £200,000 | 58.9% | 56.1% | 2.8 pts |
The Japanese pension contribution base caps out, so Japan's effective rate climbs more gently than the UK's through the upper middle of the range. These are steady-state figures with resident tax fully applied, not your first year.
Your second year in Japan costs more than your first
Resident tax, broadly around 10% of taxable income, is charged on the previous calendar year's earnings. Arrive in Japan with no prior Japanese income and you pay little or none in year one. In year two it arrives in full, and the payslip falls on an unchanged salary. Budget for it from the start rather than treating year one as your baseline. Our resident tax guide works through the timing, including what happens when you leave.
Ask how many payments make up the year
Japanese packages routinely run across 14 or 16 payments once summer and winter bonuses are included. A monthly Japanese figure multiplied by twelve will understate the package badly, and the figures on this page are annual totals precisely to avoid that trap.
Bonuses attract social insurance as well as income tax, so they are not a tax-free extra the way a Philippine 13th month largely is. But they are not penalised either, so a bonus-heavy Japanese offer costs you nothing on tax, only on predictability. Our guide to Japanese base and bonus structure covers how offers are normally expressed.
The same three salaries in cash
Converted at £1 = ¥209.66, European Central Bank reference rates, 23 September 2026. The pound to yen rate has moved a great deal in recent years, more than most pairs on this site, so check the live rate before relying on the cash column.
| UK gross | Japanese gross | UK net | Japanese net |
|---|---|---|---|
| £50,000 | ¥10,482,840 | £39,520 (£3,293/mo) | ¥7,590,054 (¥632,504/mo) |
| £80,000 | ¥16,772,544 | £56,957 (£4,746/mo) | ¥11,191,342 (¥932,612/mo) |
| £120,000 | ¥25,158,816 | £76,157 (£6,346/mo) | ¥15,681,908 (¥1,306,826/mo) |
How these figures were produced
PayMetric Labs' own calculations with our UK and Japanese tax engines at 2026 rates, for a single taxpayer aged 35 with no dependants, including national income tax, the reconstruction surtax, resident tax and employee social insurance. Long-term care insurance from age 40, Furusato Nozei and iDeCo are excluded, as are UK pension contributions and student loan.
Two levers worth knowing about
Furusato Nozei turns resident tax you already owe into goods for a small self-burden, and iDeCo contribution limits rise substantially in December 2026.
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Frequently asked questions
Does the UK or Japan leave you with more of your salary?
The UK, but by less than most people assume, and the gap narrows as you earn more. At the equivalent of £50,000 a UK employee keeps 79.0% of gross against 72.3% in Japan, a gap of 6.8 points. By £120,000 the gap is 2.0 points. Japan is not a high-tax country by European standards.
Why is my first year in Japan so much cheaper than my second?
Because resident tax is charged on the previous calendar year's income. In your first year in Japan you had no prior Japanese income, so you pay little or none. In your second year it lands in full on your first year's earnings, and the payslip drops noticeably on an unchanged salary. This is the single most common financial surprise for people moving to Japan.
How much is resident tax?
Broadly around 10% of taxable income, made up of prefectural and municipal portions, plus a small per-capita levy. It is included in the percentages on this page, so those figures represent a steady state rather than your first year. Treat your first-year take-home as temporarily flattering and budget for the step down.
Does the comparison account for bonuses?
The figures are annual totals, which is the right basis. But Japanese packages routinely run across 14 or 16 payments once summer and winter bonuses are counted, so a monthly Japanese figure multiplied by 12 will badly understate the package. Ask how many payments make up the year before comparing anything with a UK salary.
Are bonuses taxed differently in Japan?
They attract social insurance as well as income tax, so they do not arrive untaxed the way a Philippine 13th month largely does. They are not taxed more harshly than salary either, so a bonus-heavy Japanese package is not a disadvantage on tax, only on predictability.
What does Japanese social insurance cover?
Health insurance, employees' pension, employment insurance and, from age 40, long-term care insurance. The pension contribution base caps out, which is part of why the Japanese effective rate climbs more gently at higher salaries than the UK's does. These figures model age 35, so they exclude the nursing care component that starts at 40.
How reliable is the currency conversion here?
Treat it as illustrative and check the live rate. The pound to yen rate has moved a great deal in recent years, more than most pairs on this site, so a conversion used for a multi-year decision carries real risk. The percentages are the durable part.
What does this comparison leave out?
Furusato Nozei, which effectively converts resident tax into goods for a small self-burden. iDeCo contributions, which are fully deductible and whose limits rise substantially in December 2026. Dependants and the spouse deduction. UK pension salary sacrifice and student loan repayments. And the long-term care insurance that begins at 40.
Figures are PayMetric Labs' own calculations using our UK and Japanese tax engines at 2026 rates, for a single taxpayer aged 35 with no dependants, against a single UK taxpayer with no pension contributions or student loan. Figures show the steady state with resident tax fully applied, not a first year in Japan. Currency conversions use £1 = ¥209.66, European Central Bank reference rates, 23 September 2026 and will drift; the percentages do not depend on the rate. General information only, not personal tax advice.