Understanding Taxes in Tokyo
Tokyo workers pay national income tax with a basic deduction of ¥480,000, plus a flat 10% resident tax (municipal + prefectural). Social insurance includes health insurance (~5%), employees' pension (~9.15%), and employment insurance (~0.6%). Japan's tax year is January to December for employment income. Tokyo has the highest average salaries in Japan but also the highest cost of living, particularly for housing in central wards like Minato, Shibuya, and Chiyoda.