See how income, family deductions and pension savings affect your annual budget. This 2026 planning estimate shows spendable income after tax, social insurance and iDeCo savings. For freelancers, start with profit after business expenses, not revenue.
How to Read Your Results#
Spendable income is the money left after the model’s taxes, your insurance contributions and iDeCo contributions. iDeCo reduces taxable income but also puts cash into retirement savings. Employment and blue-return deductions reduce the tax base; they are not additional cash expenses.
The monthly figure is the annual result divided by twelve. Bonuses, insurance assessment bands and the timing of residence-tax bills mean an actual payslip will differ.
Residence tax here is a reserve for the following year’s bill on this income. It does not reproduce the residence tax currently coming out of your pay, which normally reflects the previous calendar year. New arrivals without prior-year taxable income may have no initial bill.
Furusato nōzei is a separate donation decision, not an automatic payroll deduction. The number shown is a rough formula estimate before credits such as mortgage relief, residence-tax adjustment credits and donation-induced bracket changes. Verify a current-year limit before donating close to it. Read the donation guide for claim procedures.
Assumptions and Sources#
The model covers ordinary resident employment or sole-proprietor income, ages 20–64, up to ¥30 million. It uses these assumptions:
| Item | Basis used here |
|---|---|
| Income-tax year | 2026 annual liability, including deductions applied at year-end from December 1, 2026 |
| Employment deduction | 2026 formula, minimum ¥740,000 up to salary, maximum ¥1,950,000; detailed salary-table rounding is approximated |
| Basic income-tax deduction | ¥1,040,000 through ¥4.89M total income; ¥670,000 through ¥6.55M; ¥620,000 through ¥23.5M; then the statutory taper |
| Employee insurance | FY2026 Tokyo rates annualised: health 4.925%, pension 9.15%, employment 0.5%, child-support contribution 0.115%, plus care 0.81% for ages 40–64 |
| Insurance caps | Simplified regular-salary caps: ¥650,000/month for pension and ¥1.39M/month for health; bonus-specific treatment and remuneration bands are not modelled |
| Freelance insurance | A rough placeholder: 10% of profit above ¥430,000, capped at ¥1.06M, plus FY2026 national pension for ages under 60. This is not a municipal premium formula. Enter your actual annual premiums when known. |
| Residence tax | Following-year estimate: 10% of its taxable base plus the usual ¥5,000 combined fixed levies; simplified Tokyo household exemptions; no adjustment or other tax credits |
| Family deductions | Ordinary dependents only; spouse under 70 with full eligibility, with claimant-income taper. Special rules for students aged 19–22, older relatives and nonresident relatives are not modelled |
| iDeCo | Actual eligible contributions selected by you. Employee options stop at ¥23,000; employer plans can impose lower limits. The model does not establish eligibility |
Insurance rates are held constant for a full year to make comparisons readable; the actual rates change partway through 2026. Freelance enterprise tax, consumption tax, loss carry-forwards, special household exemptions, mortgage credits, investment income and foreign-tax credits are outside this model. Annual social-insurance overrides replace the estimated total.
Official references: NTA basic deductions, employment deductions, spouse deductions, Tokyo FY2026 insurance table, employment-insurance rates, national pension contributions, and Shinjuku residence-tax guidance.
For residence tax on 2026 earnings, the temporary ¥740,000 minimum employment deduction also applies to FY2027 assessments; see Sumida’s explanation. Use the municipality’s tax estimator for a fuller calculation, checking the income year it supports.
Continue with Your Guide#
- Employee taxes: payroll, year-end adjustment and your annual tax slip.
- Freelancer taxes: business expenses, blue returns and invoice registration.
- Incorporation: company taxes and director remuneration.
- Furusato nōzei: donation timing, limits and claiming relief.