US Social Security in Japan: Thanks to Exchange Rates!

Imagine receiving $3,000 monthly from US Social Security. As of March 5, 2025, with an exchange rate of $1 = ¥149.39 (for example purposes), that’s ¥448,170 deposited into your account!

In Japan, this income is taxed as miscellaneous income—rates vary based on your total income (often 5-20% after deductions)—plus a resident tax (around 10% of taxable income). Thankfully, the US-Japan tax treaty prevents double taxation.

Consider this: A Big Mac set (Big Mac, drink, and fries) costs ¥750 in Japan—about $5 at this rate—compared to $9-11 in the US. Living costs vary widely: Tokyo is priciest, while rural areas are far more affordable. Exchange rates fluctuate, but with the USD currently strong, your Social Security has impressive buying power in Japan!