High Income-Tax Rate Country? - 所得税率の実際

The statistic chart by Ministry of Finance Japan (http://diamond.jp/articles/-/109277 (Japanese)) shows the actual income tax rate in Japan. Although it has often been said that Japan is one of the high income-tax rate countries, the actual ｓtatistical income-tax burden is 27-28% at most (when his or her taxable income is JPY 100 million (around USD 1 million)).

- A bigger earner usually has a larger portion of capital gains in his taxable income;

- A bigger earner usually has a lower tax burden in total, as most of his or her income is often capital gains;

- Big earners’ tax rate increased in 2014 as the capital gains income-tax rate increased from 7% (plus 3% local tax) to 15% (plus 5% local tax) in 2014; and

- Local tax is omitted from this chart – omitting a detailed calculation and difference of income amounts, its actual effective tax rate will be roughly 5%.

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