Japan Retirement Income Tax

Compute retirement income deduction, special retirement categories, and income/reconstruction/resident taxes.

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Calculation basis and official references

Reviewed on:

Formula basis

The deduction is JPY 400,000 per year through 20 years (minimum JPY 800,000), then JPY 8 million + JPY 700,000 per excess year. Taxable retirement income is generally half the excess, with short-service exceptions, floored to JPY 1,000; apply progressive income tax, 2.1% reconstruction tax, and 10% resident tax.

Calculation method

This estimate derives Japan’s retirement-income deduction from service years, applies the general, short-service, or specified-executive treatment, and estimates national, reconstruction, and resident taxes.

Exclusions and checks required

  • Multiple retirement payments, overlapping service with defined-contribution pensions, and statutory service-period adjustments are not modeled.
  • Actual withholding can differ based on the retirement-income declaration and individual resident-tax credits.

Example input:：JPY 20 million general retirement payment after 30 years

retirementPayYen
20000000
serviceYears
30
category
General retirement (automatic short-term when service ≤ 5 years)
disability
No
retirementPeriod
From 2022

The example assumes one ordinary retirement payment, no overlapping service periods, and no earlier retirement benefits.

Official references

FAQ

Who is this calculator for? Japan Retirement Income Tax

Compute retirement income deduction, special retirement categories, and income/reconstruction/resident taxes.

What values should I enter?

Applies to: Japan Income Tax & Deductions

How should I interpret this estimate?

This estimate derives Japan’s retirement-income deduction from service years, applies the general, short-service, or specified-executive treatment, and estimates national, reconstruction, and resident taxes.

How to use

  1. Enter your input values and press Calculate.
  2. Review the result and compare it with expected context.
  3. The deduction is JPY 400,000 per year through 20 years (minimum JPY 800,000), then JPY 8 million + JPY 700,000 per excess year. Taxable retirement income is generally half the excess, with short-service exceptions, floored to JPY 1,000; apply progressive income tax, 2.1% reconstruction tax, and 10% resident tax.

Official references