Budget to move in Japan: Tax Rates - Excel File

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ddr04

後輩

22 Oct 2011

2

0

• 28 Oct 2011

• #1

Hi all,
I created a budget on Excel to help me planning to move in Japan, Tokyo. (hopefully next year)

I have few question about the tax rates to calculate the net salary.

Excel 2010
http://www.horizonjapon.com/japan-budget/Japan-2012-excel-2010.xlsx

Excel older version
http://www.horizonjapon.com/japan-budget/Japan-2012-excel-97-2003.xls

I use the following Tax Rates:
Japan-Guide.com


To find the Health Insurance + Pension + Unemployment rates, I extracted them from the following net salary calculator:
http://digit-01.com/lifeplan/lifeplan_tedori.html

Health insurance - 4.1%
Pension contribution - 8.25025%
Unemployment insurance - 0.875%

I can't find the same Net Salary between my Excel file and the online calculator if I use a salary of: 5,000,000


I think the prefectural/municipal tax rates are wrong for Tokyo or I miss something...

Prefectural Income Tax Rates - 4%
Municipal Income Tax Rates - 6%


When my file will be finalized, I will share it. (I will add USD too)

 

KirinMan

後輩

23 Jan 2007

2,173

68

• 29 Oct 2011

• #2

Don't forget that depending upon the company you work for there may be other deductions as well that are company associated. For example I taught at a local HS for a few years and they took out money for PTA expenses. In another case when I was working at the telephone company there was an employee fund that they took out for and union dues as well. There were some other minor deductions that I can't off the top of my head remember as well.

Otherwise your calculations look on target, except for the fact that tax rates are going to change in the near future. Oh one other thing if you are over 40 your health insurance deductions will go up as well for paying for what is called kaigo hoken.

 

Glenski

Just me

Twenty-year veteran

20 Aug 2003

4,910

416

• 29 Oct 2011

• #3

You may have to adjust your pension and health insurance payments. Depends on the employer. They may provide shakai hoken or tell you to take a hike and get your own through kokumin kenko hoken and kokumin nenkin. Some employers have also been known to avoid making payments into unemployment insurance.

Additional info you might want to check is here.
Social Insurance Agency
Taxes in Japan

Own a car, and you will have to consider car payments, insurance, tax, mandatory safety checks (called "shaken"), gasoline and maintenance, highway tolls, and mandatory parking at home.

 

FrustratedDave

先輩

19 May 2007

1,716

113

• 29 Oct 2011

• #4

You also may want to reconsider the Beer budget. I spend about 30,000 yen a month on beer, so if that is the case you probably won't be able to move here....

 

Chidoriashi

In imagination land

2 Feb 2007

824

63

• 29 Oct 2011

• #5

Yeah, if I was not going to a nomihoudai I always started drinking at home first, otherwise I could easily drop 6000 plus just on drinks in one night.

 

KirinMan

後輩

23 Jan 2007

2,173

68

• 30 Oct 2011

• #6

Chidoriashi said:

Yeah, if I was not going to a nomihoudai I always started drinking at home first, otherwise I could easily drop 6000 plus just on drinks in one night.

Click to expand...

Nothing personal here but that's still pretty cheap. First out to the izakaya with the work-mates, maybe 3,000 to 5,000 yen, then to the snack, another 5,0000 to 10,000, and if someone is feeling frisky maybe to a place like kabukicho and the sky is the limit.

Going out to drink costs a lot and adds up quickly. Oh don't forget the taxi ride home too that could cost an arm and a leg as taxi's cost more at night than during the day.

 

Davey

先輩

Contributor

5 Feb 2005

7,694

627

• 30 Oct 2011

• #7

FrustratedDave said:

You also may want to reconsider the Beer budget. I spend about 30,000 yen a month on beer, so if that is the case you probably won't be able to move here....

Click to expand...

Nice... I wish I could do that!

 

FrustratedDave

先輩

19 May 2007

1,716

113

• 30 Oct 2011

• #8

Davey said:

Nice... I wish I could do that!

Click to expand...

I need a beer buddy badly, shame you don't live closer b/c I would happily supply the beer and the 185" home theater screen for any sports/movie that was on the menu! (I built my own dedicated media room is our basement.

 

D

ddr04

後輩

22 Oct 2011

2

0

• 31 Oct 2011

• Thread starter
• #9

Thanks all for replying.
I will adjust the beer budget
@KirinMan
Thanks for the info. I'm still under 40.
For a 5 million yen salary, all taxes represent +/- 17%.
It's quite low. Here is Canada, Montréal, it's 33% and -40 degree in Winter....
That's why I created the excel sheet
I think the calculation is quite close to the reality.