Japan Resident Tax 101: Why It Hits in June + English Tax Slip Included
Tax return season’s over, but Japan’s next financial curveball is just around the corner: resident tax (住民税 / juminzei). Bills drop in June, and if you're not ready, they can sting. I’ve been there—my German friend once wrestled with last year’s income, puzzled by a huge tax bill. Spoiler: it’s all based on the previous year’s earnings.
Whether you’re an expat, new grad, freelancer, or planning retirement, this HR insider guide breaks down what resident tax is, how it works, and how to prep now so June doesn’t catch you off guard.
💡 Free Download: Grab our Gensen Choshu Hyo in English (For Employees) in the Freebie Shelf on NavigatorJapan.com
What Is Resident Tax—and Why June?
Resident tax is Japan’s local tax, paid to your city or ward, based on your registered address as of January 1. It’s roughly 10% of your taxable income from the previous year (e.g., 2024 income = >2025 resident tax).
Unlike income tax, which is usually withheld monthly by your employer, resident tax is billed a year later, either directly to you or via your payroll from June.
If you are an employee: Check your Gensen Choshuhyo (源泉徴収票)—your year-end income statement. It shows your total salary and taxable income. If you lost it, ask your employer or HR to reissue it.
Why Last Year’s Income Sets This Year’s Bill
Here’s where people get tripped up: resident tax isn’t a flat fee. It reflects your prior year’s income.
More income last year => higher taxable base = bigger 10% chunk this year.
If you had a “fat” 2024, brace for a heavier 2025 bill.
Leaving a Job? Don’t Forget This
When you leave a job, your HR will give you a Gensen Choshuhyo for the year-to-date income. Keep it safe—your next employer will need it to calculate taxes accurately.
⚠️Important: HR might ask if you want your remaining resident tax paid out of your final paycheck. You can choose:
✅ Yes → Tell your next employer it’s already paid.
❌ No → Your next employer will deduct it monthly, or you'll pay directly.
Skipping this step can lead to confusion or double payments—I've seen it happen.
Futsu Choshu vs. Tokubetsu Choshu: Two Ways to Pay
You can pay your resident tax one of two ways:
1. Futsu Choshu (普通徴収 / Regular Collection)
You receive a bill in June from the local government.
Pay it in 4 installments (June, August, October, January) or all at once.
Good for freelancers/self-employed or those between jobs.
2. Tokubetsu Choshu (特別徴収 / Special Collection)
Your employer deducts resident tax monthly from your paycheck (June–May).
Most common and easiest for employees.
🗣️ Tip: New hires should inform HR they want Tokubetsu Choshu, so deductions start automatically.
Retiring? Be Careful
Let’s say you retire in December 2024 and get a big final paycheck + retirement allowance. Sounds great—but your 2025 resident tax will spike based on your full 2024 income.
I’ve seen retirees caught off guard, not realizing June’s bill would reflect the prior year's inflated income. Save now for next year's resident tax to avoid a surprise. If you retired and there’s no income, it will hit you hard.
Real Pitfalls I’ve Seen
🎯 When I moved back from the U.S. to Japan in 2017, I had zero income in Japan for 2016. So in 2017, no resident tax—great! But in 2018, my first Japan salary was taxed, and the 2018 bill hit hard.
🚗 One of our sales reps earned a big bonus in 2022 and celebrated with a new car. But that year’s income pushed up her 2023 resident tax. Her take-home pay shrank from June—and she hadn’t planned for it.
📉 Lesson: If you had a good year last year, stash cash for resident tax now.
How Is It Calculated?
Roughly:
(2024 salary – deductions) x 10% = 2025 resident tax
Deductions include:
iDeCo contributions
Life insurance premiums
Spouse or dependent deductions…etc
The best way to confirm your taxable income is to check your Gensen Choshuhyo.
Ask HR or Visit the Tax Office
For employees, HR is your first line of support. They manage payroll deductions and can explain how Tokubetsu Choshu works.
If you have further questions, call your local tax office (zeimusho). They’re surprisingly helpful. I’ve gotten clear answers on everything from resident tax to iDeCo. Pro tip: lines can be long—visit in person or call early. And always note the name of the person you spoke with, date, and advice given—you might need it later if questions arise.
Wrap-Up: Get Ahead of the Curve
Resident tax might feel confusing, but with the right prep, it doesn’t have to be painful.
✅ Know it’s based on last year’s income
✅ Expect your bill or paycheck deduction to start in June
✅ Save ahead if last year was a high-income year
✅ Choose Futsu or Tokubetsu Choshu based on your work status
✅ Keep your Gensen Choshuhyo and share it with new employers
I’ve seen expats and locals alike get caught off guard—but you don’t have to be one of them. Plan now, and June will be just another month.