[{"data":1,"prerenderedAt":1871},["ShallowReactive",2],{"compare-pair-united-states-vs-japan":3,"compare-united-states-japan":107},{"kind":4,"page":5},"article",{"id":6,"title":7,"bestForA":8,"bestForB":12,"body":16,"countryA":42,"countryASlug":43,"countryB":44,"countryBSlug":45,"description":22,"excerpt":46,"extension":47,"extraRows":48,"faqs":57,"flagA":67,"flagB":68,"heroImage":69,"lastUpdated":70,"meta":71,"metaDescription":72,"metaTitle":73,"navigation":74,"path":75,"relatedCompares":76,"seo":83,"stem":84,"verdict":85,"winners":89,"__hash__":106},"compare\u002Fcompare\u002Funited-states-vs-japan.md","United States vs Japan taxes",[9,10,11],"People whose income is U.S.-sourced and who can pick a low-tax state","Investors who prefer federal long-term gain rates","Founders who need U.S. capital markets",[13,14,15],"Employees tied to a Japanese employer","Families with Japanese heirs and property","Groups with real management in Japan",{"type":17,"value":18,"toc":38},"minimark",[19,23,26,29,32,35],[20,21,22],"p",{},"Japan and the United States both hide a second tax layer under the national table. In Japan that layer is inhabitant tax and reconstruction surtax. In the United States it is the state.",[20,24,25],{},"National Japanese income tax is progressive from 5% to 45%. That is not the take-home rate. The Special Income Tax for Reconstruction adds 2.1% of the income-tax amount through 2037. Standard income-based inhabitant tax is about 10%, split between prefectural and municipal charges. A high earner who only models the 45% national band will understate the Japanese bill in the same way a Californian understates the U.S. bill by quoting 37% federal.",[20,27,28],{},"The United States taxes citizens and resident aliens on worldwide income. Federal ordinary rates run from 10% to 37%. There is no federal VAT. State income, sales and property taxes then redraw the map. A move from Texas to Tokyo is a different exercise from a move from New York to Tokyo, because one person is adding Japanese local tax on top of a zero-state-income-tax baseline and the other is swapping one local stack for another.",[20,30,31],{},"Listed investments are Japan's more competitive corner. Many listed-share gains and dividends are taxed at 20.315%. That can look similar to a U.S. federal long-term gain plus 3.8% NIIT, and it can look better than a U.S. short-term gain taxed as ordinary income. Inheritance is the opposite story. Japan uses a 10% to 55% estate-tax scale after a basic exemption. The U.S. federal estate tax can reach 40%, but the exemption is large, so the practical U.S. result for many families is still lighter.",[20,33,34],{},"Corporate tax follows the same pattern of headline plus local extras. Japan's national corporation tax is 23.2%, with local corporate inhabitant tax, enterprise tax and, for fiscal years beginning on or after 1 April 2026, a defense special corporate tax of 4% of the standard corporate-tax amount above a ¥5 million basic deduction. A U.S. C corporation pays 21% federally before state tax. Consumption tax is 10% standard and 8% reduced.",[20,36,37],{},"Residence status inside Japan matters. A non-permanent resident who is not a Japanese national and has been in Japan for five years or less in the preceding ten years can keep some foreign-source income outside Japanese tax if it is neither paid nor remitted in Japan. That is a Japanese rule, not a U.S. exit. A U.S. citizen still has to reconcile IRS worldwide reporting with Japanese inhabitant tax, social insurance and the treaty.",{"title":39,"searchDepth":40,"depth":40,"links":41},"",2,[],"United States","united-states","Japan","japan",null,"md",[49,53],{"label":50,"valueA":51,"valueB":52},"Local income layer","State income tax varies; some states have none","About 10% inhabitant tax plus 2.1% reconstruction surtax on national income tax",{"label":54,"valueA":55,"valueB":56},"Listed securities","0% \u002F 15% \u002F 20% federal long-term, plus possible NIIT","20.315% common combined rate",[58,61,64],{"question":59,"answer":60},"Is Japan higher tax than the United States?","For salary, often yes once inhabitant tax and reconstruction surtax are included. For listed securities, Japan’s 20.315% rate can sit close to a U.S. federal long-term result after NIIT and state tax.",{"question":62,"answer":63},"Does Japan tax U.S. citizens who live there?","Japan can tax residents, including permanent residents on worldwide income, while U.S. citizenship continues to create U.S. filing. Credits, the U.S.–Japan treaty and non-permanent-resident rules need coordinated advice.",{"question":65,"answer":66},"Does Japan have a wealth tax?","Japan has no general net wealth tax. Fixed-asset tax, inheritance tax and gift tax can still be material.","🇺🇸","🇯🇵","\u002Fimages\u002Fcorp-card-bg.jpg","September 2026",{},"US vs Japan tax comparison for 2026. Compare federal income tax, Japanese inhabitant tax, reconstruction surtax, corporate tax, listed securities and inheritance tax.","United States vs Japan taxes (2026): income, inhabitant tax and CGT",true,"\u002Fcompare\u002Funited-states-vs-japan",[77,80],{"title":78,"path":79},"United States vs United Kingdom","\u002Fcompare\u002Funited-states-vs-united-kingdom",{"title":81,"path":82},"Australia vs Japan","\u002Fcompare\u002Faustralia-vs-japan",{"title":7,"description":22},"compare\u002Funited-states-vs-japan",[86,87,88],"Both countries tax ordinary income aggressively once local layers are counted. Japan's national personal rates run from 5% to 45%, then add a 2.1% reconstruction surtax on the income-tax amount and a standard inhabitant tax of about 10%. The United States tops out at 37% federally, then adds state income tax in many places.","Investment treatment is closer than the salary comparison. Japan commonly taxes listed securities gains and dividends at 20.315%. U.S. long-term gains and qualified dividends use 0%, 15% or 20% federally, with 3.8% NIIT for many high earners and ordinary rates on short-term gains.","Choose Japan for a Japan-centred career, family or operating company. Choose the United States for capital-market depth and a lower federal corporate rate. A U.S. citizen in Tokyo still files in the United States.",[90,94,97,100,103],{"taxType":91,"winner":92,"note":93},"Personal income tax","A","The U.S. federal top rate is 37% before state tax; Japan's 5% to 45% national scale plus about 10% inhabitant tax and reconstruction surtax is usually heavier.",{"taxType":95,"winner":92,"note":96},"Corporate tax","U.S. C corporations pay 21% federally plus possible state tax; Japan's national headline is 23.2% before local corporate levies and the 2026 defense surcharge.",{"taxType":98,"winner":92,"note":99},"Capital gains tax","U.S. long-term federal rates are 0% to 20%; Japan commonly taxes listed securities at 20.315%.",{"taxType":101,"winner":92,"note":102},"Inheritance tax","U.S. federal estate tax can reach 40% after a large exemption; Japan's inheritance tax runs from 10% to 55%.",{"taxType":104,"winner":92,"note":105},"Consumption tax","The U.S. has no federal VAT, while Japan charges 10% consumption tax with an 8% reduced rate.","jzt-L7mF3JR76PLtxnvEbk3_riTcsUwYOox0aJ7oqTM",{"a":108,"b":1165},{"index":109,"details":320},{"id":110,"title":111,"bestFor":112,"body":118,"country":42,"countryFacts":225,"countrySlug":43,"description":122,"excerpt":46,"extension":47,"faqs":231,"flag":67,"heroImage":46,"howItWorks":241,"lastUpdated":245,"meta":246,"metaDescription":247,"metaTitle":248,"navigation":74,"otherTaxes":249,"pageType":277,"path":278,"relatedFormations":279,"relatedGuides":280,"seo":281,"stem":282,"summaryCards":283,"taxBracketSections":302,"taxBrackets":303,"taxRates":304,"taxSlug":46,"taxType":46,"visas":313,"watchOut":314,"__hash__":319},"taxes\u002Fcountry\u002Funited-states\u002Findex.md","Taxes in the United States",[113,114,115,116,117],"Employees","Founders","Investors","Expats","Large businesses",{"type":17,"value":119,"toc":222},[120,123,126,131,219],[20,121,122],{},"The United States is a layered tax system, not a flat one. At the federal level, it taxes income, payroll, business profits, capital gains, estates and gifts; then states and cities can stack their own taxes on top.",[20,124,125],{},"That is why the useful question is rarely just \"what is the U.S. tax rate?\" It is usually \"which layer applies to this person, this business and this state?\"",[127,128,130],"h2",{"id":129},"federal-vs-state","Federal vs state",[132,133,134,150],"table",{},[135,136,137],"thead",{},[138,139,140,144,147],"tr",{},[141,142,143],"th",{},"Tax",[141,145,146],{},"Federal rule",[141,148,149],{},"State\u002Flocal reality",[151,152,153,165,175,186,197,208],"tbody",{},[138,154,155,159,162],{},[156,157,158],"td",{},"Income tax",[156,160,161],{},"Progressive rates apply to individuals",[156,163,164],{},"State income tax rules vary widely",[138,166,167,169,172],{},[156,168,95],{},[156,170,171],{},"21% federal C-corp rate",[156,173,174],{},"Additional state corporate or franchise taxes often apply",[138,176,177,180,183],{},[156,178,179],{},"Capital gains and dividends",[156,181,182],{},"Preferential federal treatment for many long-term gains and qualified dividends",[156,184,185],{},"Many states tax them as ordinary income",[138,187,188,191,194],{},[156,189,190],{},"Wealth tax",[156,192,193],{},"No federal net wealth tax",[156,195,196],{},"Local property tax still matters",[138,198,199,202,205],{},[156,200,201],{},"Estate \u002F inheritance",[156,203,204],{},"Federal estate-and-gift tax system",[156,206,207],{},"Some states add estate or inheritance taxes",[138,209,210,213,216],{},[156,211,212],{},"Sales tax",[156,214,215],{},"No federal VAT",[156,217,218],{},"State and local sales taxes are common",[20,220,221],{},"If you are planning around the U.S., start with the federal rule, then check the state where you live, work, own property or run the business.",{"title":39,"searchDepth":40,"depth":40,"links":223},[224],{"id":129,"depth":40,"text":130},{"region":226,"currency":227,"taxTreaties":228,"euBlacklist":229,"fatfStatus":230},"North America","USD","60+","No","Compliant",[232,235,238],{"question":233,"answer":234},"Is the U.S. a high-tax country?","It is not low-tax overall because federal, state and payroll taxes stack. The result depends heavily on where you live and how your income is earned.",{"question":236,"answer":237},"Does the U.S. have a wealth tax or inheritance tax?","No federal wealth tax and no federal inheritance tax. The federal system uses estate and gift taxes instead, and some states add their own transfer taxes.",{"question":239,"answer":240},"Do state taxes matter?","Yes, often a lot. Residence, source rules and local taxes can change the answer completely.",[242,243,244],"The U.S. is not a single-rate tax country. Federal taxes apply nationwide, but states and localities can add their own income, corporate, sales, property and transfer taxes.","U.S. citizens and resident aliens are generally taxed on worldwide income. Nonresident aliens are usually taxed on U.S.-source income and income effectively connected with a U.S. trade or business.","There is no federal net wealth tax and no federal inheritance tax. Instead, the U.S. uses a federal estate-and-gift tax system, and some states add their own estate or inheritance taxes.","May 2026",{},"United States tax overview for residents, expats, founders and investors. Compare federal income tax, corporate tax, capital gains tax, estate tax, wealth tax and state-level variation.","Taxes in the United States: income, corporate, capital gains and estate tax (2026)",[250,253,256,259,262,265,269,273],{"title":158,"slug":251,"icon":252},"income-tax","💼",{"title":190,"slug":254,"icon":255},"wealth-tax","💰",{"title":101,"slug":257,"icon":258},"inheritance-tax","🏛️",{"title":98,"slug":260,"icon":261},"capital-gains-tax","📈",{"title":95,"slug":263,"icon":264},"corporate-tax","🏢",{"title":266,"slug":267,"icon":268},"Dividend tax","dividend-tax","💸",{"title":270,"slug":271,"icon":272},"VAT \u002F sales tax","vat-sales-tax","🧾",{"title":274,"slug":275,"icon":276},"Crypto tax","crypto-tax","🪙","country","\u002Fcountry\u002Funited-states",[],[],{"title":111,"description":122},"country\u002Funited-states\u002Findex",[284,287,290,293,297,299],{"label":158,"value":285,"note":286},"10% - 37%","Federal ordinary rates",{"label":95,"value":288,"note":289},"21%","C corps, plus CAMT for large groups",{"label":98,"value":291,"note":292},"0% - 20%","Plus 3.8% NIIT",{"label":294,"value":295,"note":296},"Estate tax","Up to 40%","Federal transfer tax",{"label":190,"value":298,"note":193},"0%",{"label":212,"value":300,"note":301},"Varies","State and local only",[],[],[305,307,308,309,310,311],{"label":158,"value":285,"badge":306},"Federal",{"label":95,"value":288},{"label":98,"value":291},{"label":294,"value":295},{"label":190,"value":298},{"label":212,"value":312},"Varies by state",[],[315,316,317,318],"Federal and state rules can point in different directions. A good federal answer is not always a good state answer.","State and local taxes can change the outcome materially, especially for people who move, own property or run businesses across multiple states.","U.S. citizens and resident aliens are usually taxed on worldwide income even if they live abroad.","Entity choice matters: LLCs, partnerships, S corporations and C corporations are taxed very differently.","JKNDA_OcB0pjtZe29c2-wwnrEY8nqLOKxJRTxaGjbpw",{"income-tax":321,"corporate-tax":468,"capital-gains-tax":608,"dividend-tax":761,"wealth-tax":892,"inheritance-tax":1027},{"id":322,"title":323,"bestFor":324,"body":328,"country":42,"countryFacts":341,"countrySlug":43,"description":332,"excerpt":46,"extension":47,"faqs":342,"flag":67,"heroImage":352,"howItWorks":353,"lastUpdated":245,"meta":360,"metaDescription":361,"metaTitle":362,"navigation":74,"otherTaxes":363,"pageType":371,"path":372,"relatedFormations":373,"relatedGuides":374,"seo":375,"stem":376,"summaryCards":377,"taxBracketSections":391,"taxBrackets":450,"taxRates":451,"taxSlug":251,"taxType":158,"visas":461,"watchOut":462,"__hash__":467},"taxes\u002Fcountry\u002Funited-states\u002Fincome-tax.md","Income tax in the United States",[113,116,325,326,327],"Contractors","High earners","Remote workers",{"type":17,"value":329,"toc":339},[330,333,336],[20,331,332],{},"U.S. income tax starts with the federal progressive schedule, but the real bill is often bigger once payroll tax, state tax and local tax are in the picture.",[20,334,335],{},"The first question is residence. U.S. citizens and resident aliens are generally taxed on worldwide income; nonresident aliens are usually taxed only on U.S.-source income and income effectively connected with a U.S. trade or business.",[20,337,338],{},"If you earn W-2 wages, the payroll layer is usually as important as the bracket rate. If you are self-employed, the equivalent self-employment tax can be just as important as income tax itself.",{"title":39,"searchDepth":40,"depth":40,"links":340},[],{"region":226,"currency":227,"taxTreaties":228,"euBlacklist":229,"fatfStatus":230},[343,346,349],{"question":344,"answer":345},"What is the U.S. income tax rate?","The federal ordinary income tax rate is progressive, from 10% to 37% in 2026, depending on filing status and taxable income.",{"question":347,"answer":348},"Do expats pay U.S. income tax?","U.S. citizens and resident aliens usually do. Nonresident aliens are taxed only on U.S.-source income and income effectively connected with a U.S. trade or business.",{"question":350,"answer":351},"What payroll taxes apply?","Social Security is 6.2% each for employee and employer up to the 2026 wage base, Medicare is 1.45% each with no wage cap, and high earners may also owe Additional Medicare tax.","\u002Fimages\u002Fdelaware.webp",[354,355,356,358,359],"U.S. citizens and resident aliens are generally taxed on worldwide income. Nonresident aliens are usually taxed only on U.S.-source income and income effectively connected with a U.S. trade or business.","For 2026, the standard deduction is $16,100 for single filers and married filing separately, $32,200 for married filing jointly, and $24,150 for heads of household. The ordinary rate schedule still tops out at 37%.",{"The bracket table below shows all 2026 federal filing statuses":357},"single \u002F married filing separately, married filing jointly \u002F surviving spouse, and head of household.","Payroll tax is a separate layer. Social Security is 6.2% each for employee and employer up to the $184,500 wage base in 2026, Medicare is 1.45% each with no wage cap, and Additional Medicare tax is 0.9% on employee wages above $200,000.","State income tax can add a second layer on top of the federal bill, and treaty benefits usually do not solve state tax on their own.",{},"United States income tax guide for 2026. See the 10% to 37% federal brackets, standard deduction, FICA payroll taxes, nonresident rules and state tax notes.","U.S. income tax: rates, brackets, payroll tax and expat rules (2026)",[364,365,366,367,368,369,370],{"title":190,"slug":254,"icon":255},{"title":101,"slug":257,"icon":258},{"title":98,"slug":260,"icon":261},{"title":95,"slug":263,"icon":264},{"title":266,"slug":267,"icon":268},{"title":270,"slug":271,"icon":272},{"title":274,"slug":275,"icon":276},"tax","\u002Fcountry\u002Funited-states\u002Fincome-tax",[],[],{"title":323,"description":332},"country\u002Funited-states\u002Fincome-tax",[378,379,383,387],{"label":91,"value":285,"note":286},{"label":380,"value":381,"note":382},"Standard deduction","$16,100 \u002F $32,200","Single \u002F joint in 2026",{"label":384,"value":385,"note":386},"Social Security","6.2%","Each side, up to cap",{"label":388,"value":389,"note":390},"Medicare","1.45%","Each side, no cap",[392,416,433],{"title":393,"rows":394},"Single and married filing separately",[395,398,401,404,407,410,413],{"band":396,"rate":397},"Up to $12,400","10%",{"band":399,"rate":400},"$12,401 - $50,400","12%",{"band":402,"rate":403},"$50,401 - $105,700","22%",{"band":405,"rate":406},"$105,701 - $201,775","24%",{"band":408,"rate":409},"$201,776 - $256,225","32%",{"band":411,"rate":412},"$256,226 - $384,350","35%",{"band":414,"rate":415},"Over $384,350","37%",{"title":417,"rows":418},"Married filing jointly and surviving spouse",[419,421,423,425,427,429,431],{"band":420,"rate":397},"Up to $24,800",{"band":422,"rate":400},"$24,801 - $100,800",{"band":424,"rate":403},"$100,801 - $211,400",{"band":426,"rate":406},"$211,401 - $403,550",{"band":428,"rate":409},"$403,551 - $512,450",{"band":430,"rate":412},"$512,451 - $768,700",{"band":432,"rate":415},"Over $768,700",{"title":434,"rows":435},"Head of household",[436,438,440,442,444,446,448],{"band":437,"rate":397},"Up to $17,700",{"band":439,"rate":400},"$17,701 - $67,450",{"band":441,"rate":403},"$67,451 - $105,700",{"band":443,"rate":406},"$105,701 - $201,750",{"band":445,"rate":409},"$201,751 - $256,200",{"band":447,"rate":412},"$256,201 - $640,600",{"band":449,"rate":415},"Over $640,600",[],[452,454,455,456,459],{"label":91,"value":285,"badge":453},"Progressive",{"label":384,"value":385},{"label":388,"value":389},{"label":457,"value":458},"Additional Medicare","0.9%",{"label":460,"value":300},"State income tax",[],[463,464,465,466],"Residency matters. U.S. citizens and resident aliens are generally taxed on worldwide income, even if they live abroad.","Nonresident aliens are taxed differently, so source rules and treaty position matter before you assume the federal rate you see on a salary calculator.","State income tax can materially change the result, and some state rules do not mirror federal treaty treatment.","Payroll tax is not optional just because income tax is low. FICA is often a major part of the real tax cost.","DJ3P5yLzKAXDBobfkgb3nuWvtn759VBcBNv-PKU8xiU",{"id":469,"title":470,"bestFor":471,"body":475,"country":42,"countryFacts":551,"countrySlug":43,"description":479,"excerpt":46,"extension":47,"faqs":552,"flag":67,"heroImage":352,"howItWorks":562,"lastUpdated":245,"meta":567,"metaDescription":568,"metaTitle":569,"navigation":74,"otherTaxes":570,"pageType":371,"path":578,"relatedFormations":579,"relatedGuides":580,"seo":581,"stem":582,"summaryCards":583,"taxBracketSections":593,"taxBrackets":594,"taxRates":595,"taxSlug":263,"taxType":95,"visas":601,"watchOut":602,"__hash__":607},"taxes\u002Fcountry\u002Funited-states\u002Fcorporate-tax.md","Corporate tax in the United States",[114,472,473,474,115],"C corporations","Holding companies","MNE groups",{"type":17,"value":476,"toc":548},[477,480,483,487,545],[20,478,479],{},"The federal U.S. corporate tax rate is 21%, but that number only tells part of the story. The effective burden can be higher once state taxes, apportionment rules and minimum-tax exposure are included.",[20,481,482],{},"Just as important, many businesses are not C corporations at all. Partnerships, most LLCs and S corporations are usually taxed at owner level, so entity choice changes the whole analysis.",[127,484,486],{"id":485},"federal-layers","Federal layers",[132,488,489,501],{},[135,490,491],{},[138,492,493,496,498],{},[141,494,495],{},"Layer",[141,497,146],{},[141,499,500],{},"Practical note",[151,502,503,513,524,535],{},[138,504,505,508,510],{},[156,506,507],{},"C corporation income tax",[156,509,288],{},[156,511,512],{},"Standard federal corporate rate",[138,514,515,518,521],{},[156,516,517],{},"CAMT",[156,519,520],{},"15%",[156,522,523],{},"Large corporations with average annual financial statement income above $1 billion",[138,525,526,529,532],{},[156,527,528],{},"Pass-through entities",[156,530,531],{},"Different regime",[156,533,534],{},"Usually taxed at owner level rather than entity level",[138,536,537,540,542],{},[156,538,539],{},"State tax",[156,541,300],{},[156,543,544],{},"May be income tax, franchise tax or another business levy",[20,546,547],{},"For a U.S. business, the right question is usually not \"what is the corporate tax rate?\" It is \"what is the combined federal, state and entity-level burden after all the rules are applied?\"",{"title":39,"searchDepth":40,"depth":40,"links":549},[550],{"id":485,"depth":40,"text":486},{"region":226,"currency":227,"taxTreaties":228,"euBlacklist":229,"fatfStatus":230},[553,556,559],{"question":554,"answer":555},"What is the corporate tax rate in the U.S.?","The federal C-corporation rate is 21%.",{"question":557,"answer":558},"Do LLCs pay U.S. corporate tax?","Usually not at the entity level. Most LLCs are taxed as pass-throughs unless they elect corporate treatment.",{"question":560,"answer":561},"Does the U.S. have a corporate minimum tax?","Yes. Large corporations can fall into the 15% corporate alternative minimum tax regime based on adjusted financial statement income.",[563,564,565,566],"The federal corporate income tax rate is 21% for C corporations. That is the headline rate, but it is not the whole story because state corporate income tax or franchise tax can still apply.","Many U.S. businesses are not taxed as C corporations. Partnerships, most LLCs and S corporations are generally pass-throughs, so the tax is paid at owner level rather than at the entity level.","Large corporations should also check the corporate alternative minimum tax. The IRS says CAMT is a 15% minimum tax on adjusted financial statement income and generally applies to large corporations with average annual financial statement income above $1 billion.","Deductions, depreciation, nexus, apportionment and state filing positions can change the effective rate materially.",{},"United States corporate tax guide for 2026. See the 21% federal rate, 15% CAMT, pass-through treatment, state corporate taxes and planning caveats.","U.S. corporate tax: 21% rate, CAMT and state taxes (2026)",[571,572,573,574,575,576,577],{"title":158,"slug":251,"icon":252},{"title":190,"slug":254,"icon":255},{"title":101,"slug":257,"icon":258},{"title":98,"slug":260,"icon":261},{"title":266,"slug":267,"icon":268},{"title":270,"slug":271,"icon":272},{"title":274,"slug":275,"icon":276},"\u002Fcountry\u002Funited-states\u002Fcorporate-tax",[],[],{"title":470,"description":479},"country\u002Funited-states\u002Fcorporate-tax",[584,585,587,591],{"label":95,"value":288,"note":472},{"label":517,"value":520,"note":586},"Large corporations",{"label":588,"value":589,"note":590},"Pass-throughs","Different","LLCs and S corps",{"label":539,"value":300,"note":592},"Often added on top",[],[],[596,598,599,600],{"label":597,"value":288,"badge":306},"C corporation tax",{"label":517,"value":520},{"label":528,"value":589},{"label":539,"value":300},[],[603,604,605,606],"Do not assume every U.S. entity pays the 21% corporate rate. Entity classification is the first thing to check.","CAMT is a separate minimum-tax layer for large corporations, so a group can have more than one federal corporate tax exposure.","State corporate and franchise taxes can materially change the effective rate and the compliance burden.","International structures need transfer pricing, withholding tax and treaty checks, not just a headline rate.","VG-0G4YOT7918J7EzU9h5QILvDL2nBLBcZurVkXmvY0",{"id":609,"title":610,"bestFor":611,"body":613,"country":42,"countryFacts":701,"countrySlug":43,"description":617,"excerpt":46,"extension":47,"faqs":702,"flag":67,"heroImage":352,"howItWorks":712,"lastUpdated":245,"meta":717,"metaDescription":718,"metaTitle":719,"navigation":74,"otherTaxes":720,"pageType":371,"path":728,"relatedFormations":729,"relatedGuides":730,"seo":731,"stem":732,"summaryCards":733,"taxBracketSections":746,"taxBrackets":747,"taxRates":748,"taxSlug":260,"taxType":98,"visas":754,"watchOut":755,"__hash__":760},"taxes\u002Fcountry\u002Funited-states\u002Fcapital-gains-tax.md","Capital gains tax in the United States",[115,114,326,612,116],"Family offices",{"type":17,"value":614,"toc":698},[615,618,621,625,695],[20,616,617],{},"The U.S. federal system rewards holding period. Short-term gains are usually taxed like wages, while long-term gains and qualified dividends can get preferential rates.",[20,619,620],{},"That preference is useful, but not absolute. High earners can pick up the 3.8% NIIT, and state tax can narrow the gap further.",[127,622,624],{"id":623},"federal-treatment","Federal treatment",[132,626,627,639],{},[135,628,629],{},[138,630,631,634,636],{},[141,632,633],{},"Asset or gain",[141,635,624],{},[141,637,638],{},"Notes",[151,640,641,652,662,673,684],{},[138,642,643,646,649],{},[156,644,645],{},"Long-term capital gains",[156,647,648],{},"0%, 15% or 20%",[156,650,651],{},"Preferential rate depends on taxable income",[138,653,654,657,659],{},[156,655,656],{},"Qualified dividends",[156,658,648],{},[156,660,661],{},"Same rate bands as long-term gains",[138,663,664,667,670],{},[156,665,666],{},"Short-term capital gains",[156,668,669],{},"Ordinary income rates",[156,671,672],{},"Usually taxed up to 37% federally",[138,674,675,678,681],{},[156,676,677],{},"Collectibles \u002F some QSBS gain",[156,679,680],{},"Up to 28%",[156,682,683],{},"Special rate group",[138,685,686,689,692],{},[156,687,688],{},"Investment income for high earners",[156,690,691],{},"+3.8% NIIT",[156,693,694],{},"Applies above statutory thresholds",[20,696,697],{},"If you are investing in U.S. stocks, funds or real estate, the tax result is usually driven by holding period, income level and state of residence rather than the asset label alone.",{"title":39,"searchDepth":40,"depth":40,"links":699},[700],{"id":623,"depth":40,"text":624},{"region":226,"currency":227,"taxTreaties":228,"euBlacklist":229,"fatfStatus":230},[703,706,709],{"question":704,"answer":705},"What is the capital gains tax rate in the U.S.?","Long-term gains are generally taxed at 0%, 15% or 20% federally. Short-term gains are taxed as ordinary income.",{"question":707,"answer":708},"Are dividends taxed like capital gains?","Qualified dividends usually are. They get the same 0%, 15% or 20% federal rate bands as long-term capital gains.",{"question":710,"answer":711},"Do states tax capital gains?","Often yes. Many states tax capital gains the same way they tax ordinary income, so the state layer can be as important as the federal one.",[713,714,715,716],"In the U.S., the key split is between short-term and long-term gains. Short-term gains are usually taxed as ordinary income, while long-term gains and qualified dividends can get lower federal rates.","The 3.8% net investment income tax can apply to interest, dividends, capital gains, rents and similar investment income once income crosses the statutory thresholds.","Not all gains fit the same bucket. Collectibles and some section 1202 qualified small-business stock gains can face up to a 28% federal rate, and some real-estate gains are governed by separate rules.","State treatment still matters. Many states tax gains like ordinary income, so the federal rate is often only the starting point.",{},"United States capital gains tax guide for 2026. See the 0%, 15% and 20% long-term rates, short-term ordinary income treatment, 3.8% NIIT and state tax notes.","U.S. capital gains tax: long-term rates, qualified dividends and NIIT (2026)",[721,722,723,724,725,726,727],{"title":158,"slug":251,"icon":252},{"title":190,"slug":254,"icon":255},{"title":101,"slug":257,"icon":258},{"title":95,"slug":263,"icon":264},{"title":266,"slug":267,"icon":268},{"title":270,"slug":271,"icon":272},{"title":274,"slug":275,"icon":276},"\u002Fcountry\u002Funited-states\u002Fcapital-gains-tax",[],[],{"title":610,"description":617},"country\u002Funited-states\u002Fcapital-gains-tax",[734,737,740,744],{"label":735,"value":291,"note":736},"Long-term gains","Federal preferential rates",{"label":738,"value":285,"note":739},"Short-term gains","Taxed as ordinary income",{"label":741,"value":742,"note":743},"NIIT","3.8%","High-income investors",{"label":656,"value":291,"note":745},"Same as long-term gains",[],[],[749,751,752,753],{"label":645,"value":291,"badge":750},"Preferential",{"label":666,"value":285},{"label":656,"value":291},{"label":741,"value":742},[],[756,757,758,759],"Short-term gains are ordinary income in disguise. Holding period is often the difference between a manageable bill and a high marginal rate.","Qualified dividends only get the lower rate if the holding-period and other IRS rules are met.","The 3.8% NIIT can sit on top of the capital gains rate for higher-income taxpayers.","State law can erase some of the federal advantage because many states do not give special capital-gains treatment.","8vu_NcSrvaw7gU38j3EKx4kTw_ES-k28BoVynmECZYM",{"id":762,"title":763,"bestFor":764,"body":765,"country":42,"countryFacts":837,"countrySlug":43,"description":769,"excerpt":46,"extension":47,"faqs":838,"flag":67,"heroImage":352,"howItWorks":848,"lastUpdated":245,"meta":853,"metaDescription":854,"metaTitle":855,"navigation":74,"otherTaxes":856,"pageType":371,"path":864,"relatedFormations":865,"relatedGuides":866,"seo":867,"stem":868,"summaryCards":869,"taxBracketSections":878,"taxBrackets":879,"taxRates":880,"taxSlug":267,"taxType":266,"visas":885,"watchOut":886,"__hash__":891},"taxes\u002Fcountry\u002Funited-states\u002Fdividend-tax.md","Dividend tax in the United States",[115,114,326,116,612],{"type":17,"value":766,"toc":834},[767,770,773,777,831],[20,768,769],{},"Dividend tax in the U.S. is really a two-bucket system: qualified dividends get preferred treatment, and ordinary dividends do not.",[20,771,772],{},"That sounds simple until you add the holding-period test, the NIIT layer and state tax. Then the real answer becomes very taxpayer-specific.",[127,774,776],{"id":775},"dividend-types","Dividend types",[132,778,779,790],{},[135,780,781],{},[138,782,783,786,788],{},[141,784,785],{},"Dividend type",[141,787,624],{},[141,789,638],{},[151,791,792,802,812,822],{},[138,793,794,797,799],{},[156,795,796],{},"Qualified dividend",[156,798,648],{},[156,800,801],{},"Same bands as long-term capital gains",[138,803,804,807,809],{},[156,805,806],{},"Ordinary dividend",[156,808,669],{},[156,810,811],{},"Taxed like regular income",[138,813,814,817,819],{},[156,815,816],{},"High-income investment income",[156,818,691],{},[156,820,821],{},"Can sit on top of either dividend type",[138,823,824,826,828],{},[156,825,539],{},[156,827,300],{},[156,829,830],{},"Often taxes dividends as ordinary income",[20,832,833],{},"If you hold dividend-paying U.S. stocks, the practical goal is usually not just to earn yield. It is to understand how much of that yield survives after federal, state and withholding taxes.",{"title":39,"searchDepth":40,"depth":40,"links":835},[836],{"id":775,"depth":40,"text":776},{"region":226,"currency":227,"taxTreaties":228,"euBlacklist":229,"fatfStatus":230},[839,842,845],{"question":840,"answer":841},"Are U.S. dividends taxed at 15%?","Sometimes, but not always. Qualified dividends can be taxed at 0%, 15% or 20% federally depending on taxable income.",{"question":843,"answer":844},"What is an ordinary dividend?","It is a dividend taxed as ordinary income rather than at the preferential qualified-dividend rate.",{"question":846,"answer":847},"Do states tax dividends?","Often yes. Many states tax dividends as ordinary income, so the state layer can matter as much as the federal one.",[849,850,851,852],"The most important distinction is between qualified and ordinary dividends. Qualified dividends can get the same federal rate bands as long-term capital gains, while ordinary dividends are taxed as ordinary income.","The IRS also requires a holding period and other qualification rules before a dividend is treated as qualified. If those rules are not met, the dividend is ordinary even if it came from a blue-chip stock.","High-income taxpayers can also owe the 3.8% net investment income tax on dividends.","Foreign dividend planning is separate from U.S. dividend tax. Withholding abroad, treaty relief and the U.S. taxpayer's residence status all matter.",{},"United States dividend tax guide for 2026. See the 0% to 20% qualified dividend rates, ordinary income treatment, 3.8% NIIT and state tax notes.","U.S. dividend tax: qualified dividends, ordinary dividends and NIIT (2026)",[857,858,859,860,861,862,863],{"title":158,"slug":251,"icon":252},{"title":190,"slug":254,"icon":255},{"title":101,"slug":257,"icon":258},{"title":98,"slug":260,"icon":261},{"title":95,"slug":263,"icon":264},{"title":270,"slug":271,"icon":272},{"title":274,"slug":275,"icon":276},"\u002Fcountry\u002Funited-states\u002Fdividend-tax",[],[],{"title":763,"description":769},"country\u002Funited-states\u002Fdividend-tax",[870,872,875,876],{"label":656,"value":291,"note":871},"Preferential federal rates",{"label":873,"value":285,"note":874},"Ordinary dividends","Taxed as income",{"label":741,"value":742,"note":743},{"label":539,"value":300,"note":877},"Often applies too",[],[],[881,882,883,884],{"label":656,"value":291,"badge":750},{"label":873,"value":285},{"label":741,"value":742},{"label":539,"value":300},[],[887,888,889,890],"\"Qualified\" is a technical term. A dividend can look normal but still fail the holding-period test.","Ordinary dividends are not always \"bad\". They are simply taxed under the ordinary income rules.","State tax can still apply even when the federal dividend rate is favorable.","Foreign withholding can reduce the cash you receive before the U.S. tax question is even asked.","WDishuVmKWzAFuPBu5PRXdKGZ9H1xWqEYah3SOqIerA",{"id":893,"title":894,"bestFor":895,"body":897,"country":42,"countryFacts":973,"countrySlug":43,"description":901,"excerpt":46,"extension":47,"faqs":974,"flag":67,"heroImage":352,"howItWorks":984,"lastUpdated":245,"meta":989,"metaDescription":990,"metaTitle":991,"navigation":74,"otherTaxes":992,"pageType":371,"path":1000,"relatedFormations":1001,"relatedGuides":1002,"seo":1003,"stem":1004,"summaryCards":1005,"taxBracketSections":1013,"taxBrackets":1014,"taxRates":1015,"taxSlug":254,"taxType":190,"visas":1020,"watchOut":1021,"__hash__":1026},"taxes\u002Fcountry\u002Funited-states\u002Fwealth-tax.md","Wealth tax in the United States",[115,612,326,116,896],"Property owners",{"type":17,"value":898,"toc":970},[899,902,905,909,967],[20,900,901],{},"The U.S. does not levy a federal wealth tax. That is the clean answer, and it is why people looking for a recurring balance-sheet tax often focus instead on property tax and estate planning.",[20,903,904],{},"The catch is that \"no wealth tax\" does not mean \"no tax on assets.\" Property tax is local, and large transfers can still face estate and gift tax.",[127,906,908],{"id":907},"ownership-taxes","Ownership taxes",[132,910,911,922],{},[135,912,913],{},[138,914,915,917,919],{},[141,916,143],{},[141,918,146],{},[141,920,921],{},"State\u002Flocal angle",[151,923,924,935,946,957],{},[138,925,926,929,932],{},[156,927,928],{},"Net wealth tax",[156,930,931],{},"None",[156,933,934],{},"No broad federal wealth tax exists",[138,936,937,940,943],{},[156,938,939],{},"Property tax",[156,941,942],{},"None federally",[156,944,945],{},"Local property tax is the recurring ownership tax",[138,947,948,951,954],{},[156,949,950],{},"Estate \u002F gift tax",[156,952,953],{},"Applies to large transfers",[156,955,956],{},"Some states add transfer taxes",[138,958,959,962,964],{},[156,960,961],{},"State asset taxes",[156,963,300],{},[156,965,966],{},"Rules differ by state and locality",[20,968,969],{},"For most people, the real planning question is not whether the U.S. has a wealth tax. It is which taxes apply to the assets they actually own.",{"title":39,"searchDepth":40,"depth":40,"links":971},[972],{"id":907,"depth":40,"text":908},{"region":226,"currency":227,"taxTreaties":228,"euBlacklist":229,"fatfStatus":230},[975,978,981],{"question":976,"answer":977},"Does the U.S. have a wealth tax?","No federal net wealth tax. Property tax and transfer taxes are the main ownership-related taxes to check.",{"question":979,"answer":980},"Is property tax the same as wealth tax?","No. Property tax is a local tax on real estate, while a wealth tax would be a recurring tax on net assets more broadly.",{"question":982,"answer":983},"What should high-net-worth families check first?","Property tax, estate and gift tax exposure, state transfer taxes, trust structure and residency.",[985,986,987,988],"The U.S. does not have a federal net wealth tax. There is no annual federal tax on a person's total assets just because they own them.","Property tax is the practical substitute people usually feel first. Real estate is taxed locally, so the real burden depends on the state, county and city.","The federal wealth-transfer system still matters. Large estates and lifetime gifts can face federal estate and gift tax, and some states add their own transfer taxes.","For investors and families with significant assets, the planning work is usually about property tax, estate tax, trust design and residency, not a federal balance-sheet levy.",{},"United States wealth tax guide. See why there is no federal net wealth tax, how property tax works, and why estate and gift taxes still matter.","U.S. wealth tax: no federal net wealth tax, but property and estate taxes matter",[993,994,995,996,997,998,999],{"title":158,"slug":251,"icon":252},{"title":101,"slug":257,"icon":258},{"title":98,"slug":260,"icon":261},{"title":95,"slug":263,"icon":264},{"title":266,"slug":267,"icon":268},{"title":270,"slug":271,"icon":272},{"title":274,"slug":275,"icon":276},"\u002Fcountry\u002Funited-states\u002Fwealth-tax",[],[],{"title":894,"description":901},"country\u002Funited-states\u002Fwealth-tax",[1006,1007,1009,1010],{"label":190,"value":298,"note":193},{"label":939,"value":300,"note":1008},"Local ownership tax",{"label":294,"value":295,"note":296},{"label":1011,"value":295,"note":1012},"Gift tax","Lifetime transfers",[],[],[1016,1017,1018,1019],{"label":928,"value":298},{"label":939,"value":300},{"label":294,"value":295},{"label":1011,"value":295},[],[1022,1023,1024,1025],"No federal wealth tax does not mean no ownership tax. Property tax is often the recurring cost that matters most.","Estate and gift tax can still hit very large transfers even though there is no annual wealth tax.","State property tax, state transfer taxes and local assessments can be significant.","Trust and residency planning matter more than most people expect when assets are large or spread across states.","SClNl7gG_PVRzpcKxklGi0KoMMr09c7K9S07918LrBE",{"id":1028,"title":1029,"bestFor":1030,"body":1033,"country":42,"countryFacts":1107,"countrySlug":43,"description":1037,"excerpt":46,"extension":47,"faqs":1108,"flag":67,"heroImage":352,"howItWorks":1118,"lastUpdated":245,"meta":1123,"metaDescription":1124,"metaTitle":1125,"navigation":74,"otherTaxes":1126,"pageType":371,"path":1134,"relatedFormations":1135,"relatedGuides":1136,"seo":1137,"stem":1138,"summaryCards":1139,"taxBracketSections":1148,"taxBrackets":1149,"taxRates":1150,"taxSlug":257,"taxType":101,"visas":1158,"watchOut":1159,"__hash__":1164},"taxes\u002Fcountry\u002Funited-states\u002Finheritance-tax.md","Inheritance tax in the United States",[1031,612,326,116,1032],"Families","Estate planners",{"type":17,"value":1034,"toc":1104},[1035,1038,1041,1045,1101],[20,1036,1037],{},"The U.S. answer is simple at the headline level: there is no federal inheritance tax.",[20,1039,1040],{},"The real planning question is what happens instead. The federal estate-and-gift system can still bite, and some states add their own estate or inheritance taxes.",[127,1042,1044],{"id":1043},"transfer-taxes","Transfer taxes",[132,1046,1047,1058],{},[135,1048,1049],{},[138,1050,1051,1054,1056],{},[141,1052,1053],{},"Transfer type",[141,1055,146],{},[141,1057,638],{},[151,1059,1060,1071,1081,1091],{},[138,1061,1062,1065,1068],{},[156,1063,1064],{},"Inheritance received by heir",[156,1066,1067],{},"No federal inheritance tax",[156,1069,1070],{},"State rules may still apply",[138,1072,1073,1076,1078],{},[156,1074,1075],{},"Estate at death",[156,1077,295],{},[156,1079,1080],{},"Applies above the basic exclusion",[138,1082,1083,1086,1088],{},[156,1084,1085],{},"Lifetime gifts",[156,1087,295],{},[156,1089,1090],{},"Annual exclusion can help for smaller gifts",[138,1092,1093,1096,1098],{},[156,1094,1095],{},"State transfer taxes",[156,1097,300],{},[156,1099,1100],{},"Check the decedent's state and asset location",[20,1102,1103],{},"If the estate is large or the family has assets in multiple states, the tax answer is usually more about transfer-tax design than about inheritance tax alone.",{"title":39,"searchDepth":40,"depth":40,"links":1105},[1106],{"id":1043,"depth":40,"text":1044},{"region":226,"currency":227,"taxTreaties":228,"euBlacklist":229,"fatfStatus":230},[1109,1112,1115],{"question":1110,"answer":1111},"Does the U.S. have an inheritance tax?","No federal inheritance tax. The federal system uses estate and gift taxes instead.",{"question":1113,"answer":1114},"How much can you inherit tax-free?","It depends on the size of the estate, the transfer structure and the state involved. The federal basic exclusion amount is $15 million in 2026.",{"question":1116,"answer":1117},"Do states tax inheritances?","Some do. State estate or inheritance taxes can apply even when there is no federal inheritance tax.",[1119,1120,1121,1122],"The U.S. does not levy a federal inheritance tax. Heirs generally do not pay a federal tax just because they received an inheritance.","Instead, the federal system uses estate tax and gift tax. In 2026, the basic exclusion amount is $15 million, and transfers above that level can face estate tax up to 40%.","The annual gift exclusion is $19,000 per donee in 2026. That does not eliminate estate planning, but it does make smaller lifetime gifts easier to manage.","Some states add estate or inheritance taxes, so the answer can change depending on where the decedent lived or where the assets are located.",{},"United States inheritance tax guide for 2026. See the no federal inheritance tax rule, estate tax up to 40%, gift tax rules, the $15 million exclusion and state tax notes.","U.S. inheritance tax: no federal inheritance tax, but estate and gift tax still matter (2026)",[1127,1128,1129,1130,1131,1132,1133],{"title":158,"slug":251,"icon":252},{"title":190,"slug":254,"icon":255},{"title":98,"slug":260,"icon":261},{"title":95,"slug":263,"icon":264},{"title":266,"slug":267,"icon":268},{"title":270,"slug":271,"icon":272},{"title":274,"slug":275,"icon":276},"\u002Fcountry\u002Funited-states\u002Finheritance-tax",[],[],{"title":1029,"description":1037},"country\u002Funited-states\u002Finheritance-tax",[1140,1141,1142,1144],{"label":101,"value":298,"note":1067},{"label":294,"value":295,"note":296},{"label":1011,"value":295,"note":1143},"Annual exclusion applies",{"label":1145,"value":1146,"note":1147},"Basic exclusion","$15,000,000","2026 federal amount",[],[],[1151,1153,1155,1157],{"label":1152,"value":298},"Federal inheritance tax",{"label":1154,"value":295},"Federal estate tax",{"label":1156,"value":295},"Federal gift tax",{"label":1145,"value":1146},[],[1160,1161,1162,1163],"Heirs may not owe federal inheritance tax, but the estate itself can still face federal estate tax.","The state layer matters. Some states have their own estate or inheritance taxes.","Gift-tax planning and estate-tax planning are linked in the U.S., so lifetime gifts cannot be reviewed in isolation.","Non-U.S. assets and non-U.S. heirs can add extra treaty and reporting issues.","oWPQkK5oTpgXqnSOMS5Go8Y7ku5wneWzNapXaWLDlik",{"index":1166,"details":1263},{"id":1167,"title":1168,"bestFor":1169,"body":1171,"country":44,"countryFacts":1181,"countrySlug":45,"description":1175,"excerpt":46,"extension":47,"faqs":1185,"flag":68,"heroImage":46,"howItWorks":1194,"lastUpdated":1200,"meta":1201,"metaDescription":1202,"metaTitle":1203,"navigation":74,"otherTaxes":1204,"pageType":277,"path":1213,"relatedFormations":1214,"relatedGuides":1215,"seo":1216,"stem":1217,"summaryCards":1218,"taxBracketSections":1236,"taxBrackets":1237,"taxRates":1238,"taxSlug":46,"taxType":46,"visas":1255,"watchOut":1256,"__hash__":1262},"taxes\u002Fcountry\u002Fjapan\u002Findex.md","Taxes in Japan",[113,114,115,896,1170],"Cross-border families",{"type":17,"value":1172,"toc":1179},[1173,1176],[20,1174,1175],{},"Japan is a full-rate tax system with a national and local layer. The headline income-tax bracket is only part of the answer: residence tax, the reconstruction surtax, social insurance, payroll withholding and the timing of local assessments all affect what an employee or founder actually pays.",[20,1177,1178],{},"The system is also highly fact-sensitive for international people. Permanent residents generally report worldwide income, non-permanent residents have a limited remittance-based rule for certain foreign-source income, and non-residents are usually taxed on Japanese-source income. For companies, national corporation tax is only one part of the combined burden.",{"title":39,"searchDepth":40,"depth":40,"links":1180},[],{"region":1182,"currency":1183,"taxTreaties":1184,"euBlacklist":229,"fatfStatus":230},"Asia","JPY","Extensive",[1186,1189,1192],{"question":1187,"answer":1188},"Is Japan a high-tax country?","Generally yes. Japan combines progressive national income tax, a 10% standard inhabitant-tax layer, payroll social insurance, 10% consumption tax, corporate taxes, property taxes and inheritance or gift tax.",{"question":1190,"answer":1191},"What is the top income-tax rate in Japan?","The top national individual income-tax rate is 45% on taxable income of ¥40 million or more. The 2.1% reconstruction surtax applies to the income-tax amount, and inhabitant tax is a separate local layer.",{"question":65,"answer":1193},"Japan does not currently levy a broad annual personal net-wealth tax on financial assets. Real estate can still attract fixed asset tax and city planning tax, while investment income, transfers, inheritance and gifts are taxed under separate rules.",[1195,1196,1197,1198,1199],"Japan generally taxes permanent residents on worldwide income. A non-permanent resident is a non-Japanese resident with a domicile or residence in Japan for five years or less during the preceding ten years; foreign-source income can be outside Japanese tax when it is neither paid in Japan nor remitted to Japan, subject to the detailed rules.","Personal income tax is progressive from 5% to 45% on taxable income. The 2.1% Special Income Tax for Reconstruction is added to income tax through 2037, while the standard income-based inhabitant tax is 10% split between prefectural and municipal taxes.","Japanese companies generally pay 23.2% national corporation tax, together with local corporate inhabitant tax, enterprise tax and other corporate levies. For fiscal years beginning on or after April 1, 2026, the Defense Special Corporate Tax adds 4% to the standard corporate-tax amount above its ¥5 million basic deduction.","Japan has no broad annual personal net-wealth tax. Property owners can still face fixed asset tax, city planning tax, real-estate acquisition tax, registration and license tax, stamp tax, and substantial inheritance or gift tax.","Consumption tax is 10% for most taxable goods and services and 8% for qualifying food, beverages excluding alcohol and eating-out services, and subscribed newspapers. Employers and workers must also model health insurance, employees' pension, employment insurance and other payroll costs.","August 2026",{},"Japan tax overview for expats, employees, founders and investors. Compare income tax, residence tax, corporate tax, capital gains, dividends, property taxes, inheritance tax and consumption tax.","Taxes in Japan: income, corporate, capital gains and inheritance tax (2026)",[1205,1206,1207,1208,1209,1210,1211,1212],{"title":158,"slug":251,"icon":252},{"title":190,"slug":254,"icon":255},{"title":101,"slug":257,"icon":258},{"title":98,"slug":260,"icon":261},{"title":95,"slug":263,"icon":264},{"title":266,"slug":267,"icon":268},{"title":270,"slug":271,"icon":272},{"title":274,"slug":275,"icon":276},"\u002Fcountry\u002Fjapan",[],[],{"title":1168,"description":1175},"country\u002Fjapan\u002Findex",[1219,1222,1225,1228,1231,1233],{"label":158,"value":1220,"note":1221},"5% - 45%","National rates; plus 2.1% surtax and local tax",{"label":190,"value":1223,"note":1224},"No general net wealth tax","Property ownership taxes still apply",{"label":95,"value":1226,"note":1227},"23.2%","National headline rate before local taxes",{"label":98,"value":1229,"note":1230},"20.315%","Common listed-securities rate",{"label":266,"value":1229,"note":1232},"Listed shares; other dividends differ",{"label":104,"value":1234,"note":1235},"10% \u002F 8%","Standard and reduced rates",[],[],[1239,1241,1245,1249,1251,1252,1254],{"label":1240,"value":1220,"badge":453},"National income tax",{"label":1242,"value":1243,"note":1244},"Special reconstruction surtax","2.1% of income tax","Generally applies through 2037",{"label":1246,"value":1247,"note":1248},"Inhabitant tax","About 10%","Standard 4% prefectural and 6% municipal income-based rates",{"label":1250,"value":1229},"Listed securities gains",{"label":95,"value":1226},{"label":101,"value":1253},"10% - 55%",{"label":104,"value":1234},[],[1257,1258,1259,1260,1261],"Japan's residence categories are not the same as immigration status. A visa or residence card does not by itself determine whether worldwide income, remitted foreign income or Japanese-source income is taxable.","Inhabitant tax is generally based on the prior year's income and the taxpayer's status on January 1. A person leaving Japan can therefore still have a current-year local-tax bill after departure.","The 23.2% corporate figure is only the national headline rate. Local taxes, per-capita levies, enterprise tax, payroll, consumption tax compliance and the 2026 defense surcharge can materially change the company cost.","Crypto gains are generally miscellaneous income rather than a simple 20.315% capital-gains item. Trading frequency, business status, exchanges, valuation and foreign reporting can change the analysis.","Japan's inheritance and gift rules can reach foreign assets in cross-border cases. Nationality, residence history, temporary-resident status, the donor or decedent, and the location of the property all matter.","hzMRaJJW5l9ckeHX4RQwlMrOUDSvN61370YabpKU2nc",{"income-tax":1264,"corporate-tax":1390,"capital-gains-tax":1485,"dividend-tax":1574,"wealth-tax":1665,"inheritance-tax":1749},{"id":1265,"title":1266,"bestFor":1267,"body":1270,"country":44,"countryFacts":1280,"countrySlug":45,"description":1274,"excerpt":46,"extension":47,"faqs":1281,"flag":68,"heroImage":46,"howItWorks":1291,"lastUpdated":1200,"meta":1298,"metaDescription":1299,"metaTitle":1300,"navigation":74,"otherTaxes":1301,"pageType":371,"path":1309,"relatedFormations":1310,"relatedGuides":1311,"seo":1312,"stem":1313,"summaryCards":1314,"taxBracketSections":1327,"taxBrackets":1328,"taxRates":1356,"taxSlug":251,"taxType":158,"visas":1381,"watchOut":1382,"__hash__":1389},"taxes\u002Fcountry\u002Fjapan\u002Fincome-tax.md","Income tax in Japan",[113,116,1268,326,1269],"Freelancers","Cross-border workers",{"type":17,"value":1271,"toc":1278},[1272,1275],[20,1273,1274],{},"Japan income tax is a layered residence-and-source system. The first question is whether the taxpayer is a permanent resident, non-permanent resident or non-resident; the second is how salary, business, investment, rental and foreign income is classified.",[20,1276,1277],{},"For employees, payroll withholding and year-end adjustment make the process look simple, but local inhabitant tax is generally based on the previous year's income. People arriving, leaving or working across borders should model both the national return and the local assessment rather than relying on the tax withheld from one payslip.",{"title":39,"searchDepth":40,"depth":40,"links":1279},[],{"region":1182,"currency":1183,"taxTreaties":1184,"euBlacklist":229,"fatfStatus":230},[1282,1285,1288],{"question":1283,"answer":1284},"What are Japan's income-tax brackets?","National income tax has seven brackets from 5% to 45% on taxable income. The 45% rate starts at ¥40 million, before the 2.1% reconstruction surtax and the separate local inhabitant tax.",{"question":1286,"answer":1287},"Do foreign residents pay tax on worldwide income in Japan?","Permanent residents generally do. Non-permanent residents have a narrower rule for certain foreign-source income that is not paid in Japan or remitted to Japan, while non-residents are generally taxed only on Japanese-source income.",{"question":1289,"answer":1290},"How is salary taxed in Japan?","Employers normally withhold national income tax and perform a year-end adjustment after applying the employment-income deduction and other deductions. Inhabitant tax is generally assessed separately on the prior year's income, and social insurance is withheld in addition to tax.",[1292,1293,1294,1295,1296,1297],"Japan classifies individuals as residents or non-residents for tax purposes. A person with a domicile in Japan or a residence in Japan for one year or more is generally a resident; a non-Japanese resident with a domicile or residence in Japan for five years or less during the preceding ten years is generally a non-permanent resident.","Permanent residents are generally taxed on worldwide income. Non-permanent residents are taxed on Japanese-source income and certain foreign-source income, including foreign income paid in Japan or remitted to Japan; salary for work performed in Japan is Japanese-source even if the employer pays it abroad.","Non-residents are generally taxed on Japanese-source income. When Japanese work income is not fully settled through withholding, a non-resident can have to file and pay 20.42% on the relevant salary amount. Tax treaties can reduce or remove domestic withholding when their conditions and filing procedure are met.","Residents calculate taxable income by classifying salary, business, rental, investment, pension and miscellaneous income, subtracting the available deductions, and applying the national progressive table. Employers commonly withhold salary tax and perform a year-end adjustment, but self-employed people and many taxpayers file an annual return.","Individual inhabitant tax is a separate local tax. Its standard income-based rates are 4% prefectural and 6% municipal, assessed mainly on the prior year's income for people with a domicile or similar connection in Japan on January 1. Certain self-employed businesses also pay individual enterprise tax at 3% to 5%.","Very high-income individuals can also fall under a minimum-tax-style additional income-tax rule. From income years beginning in 2025, the rule compares ordinary income tax and reconstruction surtax with 22.5% of the amount by which the relevant base income exceeds ¥330 million.",{},"Japan income-tax guide for expats, employees and freelancers. See the 5% to 45% national brackets, 10% inhabitant tax, reconstruction surtax, non-permanent-resident rules and salary deductions.","Japan income tax: rates, brackets, residence and expat rules (2026)",[1302,1303,1304,1305,1306,1307,1308],{"title":190,"slug":254,"icon":255},{"title":101,"slug":257,"icon":258},{"title":98,"slug":260,"icon":261},{"title":95,"slug":263,"icon":264},{"title":266,"slug":267,"icon":268},{"title":270,"slug":271,"icon":272},{"title":274,"slug":275,"icon":276},"\u002Fcountry\u002Fjapan\u002Fincome-tax",[],[],{"title":1266,"description":1274},"country\u002Fjapan\u002Fincome-tax",[1315,1317,1319,1323],{"label":1240,"value":1220,"note":1316},"Seven progressive brackets",{"label":1246,"value":1247,"note":1318},"Standard local income-based layer",{"label":1320,"value":1321,"note":1322},"Reconstruction surtax","2.1%","Applied to the income-tax amount through 2037",{"label":1324,"value":1325,"note":1326},"Non-resident salary","20.42%","Common withholding or self-assessed rate for Japanese work income",[],[1329,1333,1336,1340,1344,1348,1352],{"band":1330,"rate":1331,"note":1332},"¥1,000 - ¥1,949,000","5%","National taxable income; deduction ¥0",{"band":1334,"rate":397,"note":1335},"¥1,950,000 - ¥3,299,000","National rate; deduction ¥97,500",{"band":1337,"rate":1338,"note":1339},"¥3,300,000 - ¥6,949,000","20%","National rate; deduction ¥427,500",{"band":1341,"rate":1342,"note":1343},"¥6,950,000 - ¥8,999,000","23%","National rate; deduction ¥636,000",{"band":1345,"rate":1346,"note":1347},"¥9,000,000 - ¥17,999,000","33%","National rate; deduction ¥1,536,000",{"band":1349,"rate":1350,"note":1351},"¥18,000,000 - ¥39,999,000","40%","National rate; deduction ¥2,796,000",{"band":1353,"rate":1354,"note":1355},"¥40,000,000 and above","45%","National rate; deduction ¥4,796,000",[1357,1359,1362,1365,1367,1369,1373,1377],{"label":1240,"value":1220,"badge":1358},2026,{"label":1360,"value":1354,"note":1361},"Highest bracket tax","Top national marginal rate before surtax and local tax",{"label":1246,"value":1363,"note":1364},"4% + 6%","Standard prefectural and municipal income-based rates",{"label":1320,"value":1243,"note":1366},"Generally applies from 2013 through 2037",{"label":1324,"value":1325,"note":1368},"Subject to source and treaty rules",{"label":1370,"value":1371,"note":1372},"Employment-income deduction","¥650,000 minimum","For employment income from FY2025 and after, with a general cap of ¥1.95m",{"label":1374,"value":1375,"note":1376},"Individual enterprise tax","3% - 5%","Selected business categories",{"label":1378,"value":1379,"note":1380},"Very-high-income additional rule","22.5% comparison rate","Relevant base income above ¥330m; not a normal seventh bracket",[],[1383,1384,1385,1386,1387,1388],"The 5% to 45% table is the national rate on taxable income, not an all-in effective rate. The reconstruction surtax, inhabitant tax, social insurance, deductions and credits change the final result.","The non-permanent-resident rule is not a blanket exemption for foreign income. Remittances, payments in Japan, salary for work performed in Japan, residence history and mixed funds require careful tracing.","Inhabitant tax is usually collected one year in arrears. The January 1 status test means that leaving Japan during the year does not automatically erase the local tax attributable to the preceding year's income.","A one-employer salary can often be settled through withholding and year-end adjustment, but foreign salary, rental income, crypto, securities, side work and large deductions can create a filing obligation.","The ordinary 45% table does not cap every possible liability for the highest earners. The additional high-income rule can apply above the ¥330 million base-income threshold, and the calculation is a comparison rather than a simple 22.5% surcharge on all income.","Social insurance is not income tax. Employees and employers generally share salary-based health and employees' pension contributions, while self-employed people may use national health insurance and national pension.","Hgl8Ew1Xdf-7aSy9fQWDTbwdU6U2Evde8Jv4s0_0tqQ",{"id":1391,"title":1392,"bestFor":1393,"body":1398,"country":44,"countryFacts":1408,"countrySlug":45,"description":1402,"excerpt":46,"extension":47,"faqs":1409,"flag":68,"heroImage":46,"howItWorks":1419,"lastUpdated":1200,"meta":1425,"metaDescription":1426,"metaTitle":1427,"navigation":74,"otherTaxes":1428,"pageType":371,"path":1436,"relatedFormations":1437,"relatedGuides":1438,"seo":1439,"stem":1440,"summaryCards":1441,"taxBracketSections":1455,"taxBrackets":1456,"taxRates":1457,"taxSlug":263,"taxType":95,"visas":1477,"watchOut":1478,"__hash__":1484},"taxes\u002Fcountry\u002Fjapan\u002Fcorporate-tax.md","Corporate tax in Japan",[114,1394,1395,1396,1397],"Operating companies","Japanese subsidiaries","Cross-border groups","R&D businesses",{"type":17,"value":1399,"toc":1406},[1400,1403],[20,1401,1402],{},"Japan corporate tax is a stack rather than a single percentage. The national 23.2% rate is the useful starting point, but company size, local taxes, enterprise tax, capital, payroll, ownership and the new defense surcharge determine the practical cost.",[20,1404,1405],{},"For international groups, the source-of-income and permanent-establishment analysis comes before the rate comparison. A Japanese subsidiary generally faces the full local framework, while a foreign company may have a narrower but still significant Japanese-source and withholding exposure.",{"title":39,"searchDepth":40,"depth":40,"links":1407},[],{"region":1182,"currency":1183,"taxTreaties":1184,"euBlacklist":229,"fatfStatus":230},[1410,1413,1416],{"question":1411,"answer":1412},"What is Japan's corporate-tax rate?","The standard national corporation-tax rate is 23.2%. Qualifying companies with paid-in capital of ¥100 million or less can generally apply 15% to the first ¥8 million of annual taxable income, but local taxes and eligibility conditions change the combined result.",{"question":1414,"answer":1415},"What is Japan's effective corporate-tax rate?","A standard-rate large-company example is about 29.74% before the April 2026 defense surcharge and about 30.64% when that surcharge applies. Actual rates vary by company size, income bands, local government, capital structure and incentives.",{"question":1417,"answer":1418},"Does Japan apply Pillar Two?","Yes. Japan has enacted a 15% global minimum-tax framework for qualifying multinational and large domestic groups meeting the €750 million consolidated-revenue threshold and related statutory conditions.",[1420,1421,1422,1423,1424],"A corporation established in Japan is generally taxed in Japan on its worldwide income. A foreign corporation is usually taxed on Japanese-source income, with the precise corporate-tax, local-tax and permanent-establishment result depending on the business structure and the applicable treaty.","Japan's corporate tax stack includes national corporation tax, local corporation tax, corporate inhabitant tax, enterprise tax and special corporate enterprise tax. Corporate inhabitant tax can include an income-based component and a per-capita levy based on capital and employees.","The standard national corporation-tax rate is 23.2%. A qualifying company with paid-in capital of ¥100 million or less can generally use a 15% national rate on the first ¥8 million of annual taxable income, while the excess is normally taxed at 23.2%; group ownership and high-income exclusions matter.","For fiscal years beginning on or after April 1, 2026, the Defense Special Corporate Tax applies at 4% to the standard corporation-tax amount after a ¥5 million basic deduction. The 2026 effective-rate examples therefore need to be read alongside the ordinary local-tax stack and this new surcharge.","Japan has enacted OECD Pillar Two measures for qualifying multinational and large domestic groups with consolidated revenue of at least €750 million in at least two of the previous four years. The ordinary Japanese rate, local taxes, foreign tax credits and top-up-tax rules must be modelled together.",{},"Japan corporate-tax guide for founders and international groups. See the 23.2% national rate, 15% SME band, combined effective rates, defense surcharge, local taxes and Pillar Two.","Japan corporate tax: 23.2% rate, SME rules and 2026 surcharge",[1429,1430,1431,1432,1433,1434,1435],{"title":158,"slug":251,"icon":252},{"title":190,"slug":254,"icon":255},{"title":101,"slug":257,"icon":258},{"title":98,"slug":260,"icon":261},{"title":266,"slug":267,"icon":268},{"title":270,"slug":271,"icon":272},{"title":274,"slug":275,"icon":276},"\u002Fcountry\u002Fjapan\u002Fcorporate-tax",[],[],{"title":1392,"description":1402},"country\u002Fjapan\u002Fcorporate-tax",[1442,1445,1448,1452],{"label":1443,"value":1226,"note":1444},"Standard national rate","Ordinary corporations",{"label":1446,"value":520,"note":1447},"Qualifying SME first ¥8m","Reduced national rate, subject to conditions",{"label":1449,"value":1450,"note":1451},"Large-company effective rate","30.64%","Standard-rate example including the 2026 defense surcharge",{"label":1453,"value":520,"note":1454},"Global minimum tax","For qualifying large multinational groups",[],[],[1458,1461,1464,1468,1470,1474],{"label":1459,"value":1226,"badge":1460},"Standard national corporation tax","Headline",{"label":1462,"value":520,"note":1463},"Qualifying SME first ¥8 million","Reduced national rate through business years beginning by March 31, 2027",{"label":1465,"value":1466,"note":1467},"Certain high-income SMEs first ¥8 million","17%","Special rule for qualifying businesses with annual income above ¥1 billion",{"label":1449,"value":1450,"note":1469},"Standard-rate example after April 1, 2026 defense surcharge",{"label":1471,"value":1472,"note":1473},"Qualifying SME effective bands","21.94% \u002F 23.73% \u002F 34.43%","JETRO standard-rate examples before applying the defense-tax deduction",{"label":1475,"value":520,"note":1476},"Pillar Two minimum","For in-scope €750m groups",[],[1479,1480,1481,1482,1483],"The 23.2% rate is not Japan's combined company burden. Local corporate inhabitant tax, enterprise tax, special corporate enterprise tax, per-capita levies and payroll costs can be material even when taxable profit is low.","The reduced SME rate is not available merely because a company is small in everyday language. Paid-in capital, parent-company ownership, group aggregation, income size and the fiscal-year start date must be checked.","For a fiscal year beginning on or after April 1, 2026, the defense surcharge is calculated from the standard corporation-tax amount and has a ¥5 million basic deduction. It is not simply a flat extra 4% of accounting profit.","A foreign company can create Japanese tax exposure through a permanent establishment, Japanese-source income, a dependent agent, real-estate activity or withholding obligations even without incorporating a Japanese subsidiary.","Pillar Two is a separate compliance layer. Large groups need jurisdictional effective-tax-rate calculations, data, notifications and possible top-up tax rather than relying on the headline Japanese corporation-tax rate.","cyIj0vHnxiV-el4sIf-LqQ_l7IiuNL-ZHbWsgiRzYHQ",{"id":1486,"title":1487,"bestFor":1488,"body":1491,"country":44,"countryFacts":1501,"countrySlug":45,"description":1495,"excerpt":46,"extension":47,"faqs":1502,"flag":68,"heroImage":46,"howItWorks":1512,"lastUpdated":1200,"meta":1518,"metaDescription":1519,"metaTitle":1520,"navigation":74,"otherTaxes":1521,"pageType":371,"path":1529,"relatedFormations":1530,"relatedGuides":1531,"seo":1532,"stem":1533,"summaryCards":1534,"taxBracketSections":1547,"taxBrackets":1548,"taxRates":1549,"taxSlug":260,"taxType":98,"visas":1566,"watchOut":1567,"__hash__":1573},"taxes\u002Fcountry\u002Fjapan\u002Fcapital-gains-tax.md","Capital gains tax in Japan",[115,896,1489,1490,1170],"Crypto holders","Traders",{"type":17,"value":1492,"toc":1499},[1493,1496],[20,1494,1495],{},"Japan separates financial-asset gains from real-estate and crypto income. The 20.315% securities rate is attractive as a headline, but it should not be applied to every investment without checking the asset class, holding period and taxpayer's residence status.",[20,1497,1498],{},"Property owners and mobile investors should also track acquisition costs, sale expenses, foreign withholding and the possibility of exit tax. The right answer often depends more on classification and timing than on the headline percentage.",{"title":39,"searchDepth":40,"depth":40,"links":1500},[],{"region":1182,"currency":1183,"taxTreaties":1184,"euBlacklist":229,"fatfStatus":230},[1503,1506,1509],{"question":1504,"answer":1505},"What is Japan's capital-gains tax rate on shares?","The common individual rate on listed shares and many other securities is 20.315%, made up of 15.315% national tax and 5% local inhabitant tax. Designated accounts, loss offsets and filing elections can affect the final calculation.",{"question":1507,"answer":1508},"How are property gains taxed in Japan?","Long-term land and building gains generally face 20.315%, while short-term gains generally face 39.63%. The ownership test uses January 1 of the sale year, and home-sale deductions or other special regimes may apply.",{"question":1510,"answer":1511},"Does Japan tax crypto like stock-market gains?","Usually not. Cryptoasset profits are generally miscellaneous income and are taxed under the progressive income-tax system unless the facts support business income or another classification.",[1513,1514,1515,1516,1517],"Japan does not use one universal capital-gains rate. Listed shares, investment trusts and many financial instruments are generally subject to separate self-assessment taxation at 15.315% national tax, including the reconstruction surtax, plus 5% local inhabitant tax, producing 20.315%.","Individuals can use a designated securities account where a broker calculates and withholds tax. Listed-share losses can in appropriate cases be carried forward or offset against certain listed dividends, but the election and filing rules matter.","Gains from Japanese land and buildings are separated by the ownership period measured on January 1 of the sale year. Long-term gains after more than five years use 15% national tax plus 5% local tax, while short-term gains of five years or less use 30% national tax plus 9% local tax.","Real-estate gains are calculated after acquisition costs, selling expenses and available special deductions. A qualifying sale of a main home can use a ¥30 million special deduction, while replacement, loss, non-resident and related-party rules can change the result.","Cryptoasset gains from selling or using digital assets are generally classified as miscellaneous income unless they arise as part of a business or another income category. That usually puts them into the progressive income-tax system, with inhabitant tax and reconstruction surtax also relevant.",{},"Japan capital-gains tax guide for investors and crypto holders. See the 20.315% securities rate, property holding-period rules, 39.63% short-term rate, home relief and crypto treatment.","Japan capital gains tax: shares, property and crypto (2026)",[1522,1523,1524,1525,1526,1527,1528],{"title":158,"slug":251,"icon":252},{"title":190,"slug":254,"icon":255},{"title":101,"slug":257,"icon":258},{"title":95,"slug":263,"icon":264},{"title":266,"slug":267,"icon":268},{"title":270,"slug":271,"icon":272},{"title":274,"slug":275,"icon":276},"\u002Fcountry\u002Fjapan\u002Fcapital-gains-tax",[],[],{"title":1487,"description":1495},"country\u002Fjapan\u002Fcapital-gains-tax",[1535,1537,1540,1544],{"label":54,"value":1229,"note":1536},"15.315% national and 5% local",{"label":1538,"value":1229,"note":1539},"Long-term property","Owned for more than five years at the relevant January 1 test",{"label":1541,"value":1542,"note":1543},"Short-term property","39.63%","30% national plus 9% local, before detailed reliefs",{"label":1545,"value":453,"note":1546},"Crypto gains","Generally miscellaneous income, not the securities flat rate",[],[],[1550,1552,1555,1558,1562],{"label":54,"value":1229,"badge":1551},"Separate taxation",{"label":1553,"value":1229,"note":1554},"Long-term land and buildings","15% national plus 5% local, before special reliefs",{"label":1556,"value":1542,"note":1557},"Short-term land and buildings","30% national plus 9% local, before special reliefs",{"label":1559,"value":1560,"note":1561},"Cryptoassets","Progressive income rates","Generally miscellaneous income",{"label":1563,"value":1564,"note":1565},"Main-home special deduction","Up to ¥30 million","Eligibility and filing conditions apply",[],[1568,1569,1570,1571,1572],"20.315% is a common rate for listed securities, not a promise that every asset sale is taxed at 20.315%. Real estate, crypto, private-company interests, carried interests and business disposals have different classifications and reliefs.","Property holding period is tested using January 1 of the sale year. A sale that looks like a five-year holding period from the purchase and sale dates can still be short-term under the statutory test.","Crypto-to-crypto swaps, spending crypto, staking, lending, mining and airdrops can create taxable events or valuation questions. The annual exchange report does not always contain every transaction needed for the return.","Foreign brokers and foreign withholding can create both Japanese reporting and double-tax-credit issues. Treaty relief does not automatically correct a missing Japanese return.","A resident leaving Japan with securities and other assets worth at least ¥100 million can fall within Japan's exit-tax rules, subject to residence history and other conditions.","dCuclpnuuvi0wrLV6aNKy2d1dji73zXm1xbWMHlEMGo",{"id":1575,"title":1576,"bestFor":1577,"body":1580,"country":44,"countryFacts":1590,"countrySlug":45,"description":1584,"excerpt":46,"extension":47,"faqs":1591,"flag":68,"heroImage":46,"howItWorks":1601,"lastUpdated":1200,"meta":1607,"metaDescription":1608,"metaTitle":1609,"navigation":74,"otherTaxes":1610,"pageType":371,"path":1618,"relatedFormations":1619,"relatedGuides":1620,"seo":1621,"stem":1622,"summaryCards":1623,"taxBracketSections":1637,"taxBrackets":1638,"taxRates":1639,"taxSlug":267,"taxType":266,"visas":1657,"watchOut":1658,"__hash__":1664},"taxes\u002Fcountry\u002Fjapan\u002Fdividend-tax.md","Dividend tax in Japan",[115,114,1578,612,1579],"Shareholders","Cross-border investors",{"type":17,"value":1581,"toc":1588},[1582,1585],[20,1583,1584],{},"Japan dividend tax is mainly a withholding-and-election question. The common 20.315% listed-share figure is easy to quote, but the 3% major-shareholder test, unlisted-company rules, NISA, foreign withholding and corporate received-dividend deductions can all change the result.",[20,1586,1587],{},"Investors should keep dividend vouchers, broker statements and treaty evidence. The right filing method can affect loss offsets and credits, while a withholding-only outcome is not always the best outcome for a resident with a broader portfolio.",{"title":39,"searchDepth":40,"depth":40,"links":1589},[],{"region":1182,"currency":1183,"taxTreaties":1184,"euBlacklist":229,"fatfStatus":230},[1592,1595,1598],{"question":1593,"answer":1594},"How are listed dividends taxed in Japan?","Listed-share dividends received by an individual below the 3% major-shareholder threshold are commonly withheld at 20.315%, consisting of 15.315% national tax and 5% local tax. Other filing choices may be available.",{"question":1596,"answer":1597},"What is Japan's dividend withholding rate for unlisted shares?","Unlisted dividends are generally subject to 20.42% national withholding for income tax and the reconstruction surtax. The final resident tax and return position depend on the recipient and the applicable declaration method.",{"question":1599,"answer":1600},"Can dividends be tax-free in Japan?","Qualifying dividends held through the NISA system can be exempt, subject to the account, security, annual-limit and receipt conditions. Dividends outside NISA remain subject to the ordinary rules.",[1602,1603,1604,1605,1606],"Dividends received by an individual from listed shares are generally subject to 15.315% national income tax, including the reconstruction surtax, plus 5% local inhabitant tax when the recipient is below the major-shareholder threshold. The combined source withholding is 20.315%.","Dividends from unlisted shares, and dividends from listed shares received by an individual who owns 3% or more of the issued shares, are generally withheld at 20.42% for national income tax and reconstruction surtax, with no local tax withheld at source under that rule.","Residents can have choices for listed dividends, including a withholding-only route, aggregate taxation or separate self-assessment taxation. Separate taxation can be useful when coordinating qualifying listed-share losses, while aggregate taxation can be relevant where the dividend tax credit is valuable.","Dividends received by Japanese companies are governed by a corporate received-dividend deduction regime. The deductible percentage depends on the relationship between payer and recipient, so a corporate shareholder should not assume that an individual 20.315% rate is the final company tax result.","Non-residents are generally subject to Japanese withholding on Japanese-source dividends, commonly 15.315% for qualifying listed-share dividends and 20.42% for other dividends. A tax treaty can reduce the rate or provide an exemption if the required application is filed in time.",{},"Japan dividend-tax guide for shareholders and founders. See the 20.315% listed-share rate, 20.42% unlisted withholding, 3% major-shareholder rule, NISA and treaty relief.","Japan dividend tax: listed shares, withholding and NISA (2026)",[1611,1612,1613,1614,1615,1616,1617],{"title":158,"slug":251,"icon":252},{"title":190,"slug":254,"icon":255},{"title":101,"slug":257,"icon":258},{"title":98,"slug":260,"icon":261},{"title":95,"slug":263,"icon":264},{"title":270,"slug":271,"icon":272},{"title":274,"slug":275,"icon":276},"\u002Fcountry\u002Fjapan\u002Fdividend-tax",[],[],{"title":1576,"description":1584},"country\u002Fjapan\u002Fdividend-tax",[1624,1627,1630,1633],{"label":1625,"value":1229,"note":1626},"Listed-share dividends","15.315% national and 5% local withholding",{"label":1628,"value":1325,"note":1629},"Unlisted dividends","National withholding; local tax may be settled separately",{"label":1631,"value":1325,"note":1632},"Major listed shareholder","Generally 3% or more of issued shares",{"label":1634,"value":1635,"note":1636},"Tax-free investing","NISA eligible","Qualifying dividends and gains can be exempt in the right account",[],[],[1640,1643,1646,1649,1652,1654],{"label":1641,"value":1229,"badge":1642},"Listed shares below 3%","Common withholding",{"label":1644,"value":1325,"note":1645},"Unlisted shares","National withholding at source",{"label":1647,"value":1325,"note":1648},"Listed shares at or above 3%","Major-shareholder rule",{"label":1650,"value":1651},"National portion on listed shares","15.315%",{"label":1653,"value":1331},"Local portion on listed shares",{"label":1655,"value":298,"note":1656},"NISA dividends","Only for qualifying holdings and account conditions",[],[1659,1660,1661,1662,1663],"20.315% is the usual source-tax figure for qualifying listed-share dividends, not necessarily the final liability. A tax return, local tax, dividend tax credit, loss offset, foreign tax credit or treaty claim can change the result.","The 3% major-shareholder threshold is important. A large listed holding can move dividends out of the ordinary listed-share withholding regime and into the 20.42% national withholding and aggregate-income rules.","NISA is an account-based exemption, not a general exemption for Japanese residents' investment income. The security, account, annual limit and receipt method must satisfy the NISA rules.","Foreign dividends can carry foreign withholding before the Japanese assessment. Keep payer statements and treaty documentation because the foreign-tax-credit calculation is separate from Japanese withholding.","A corporate shareholder is not simply taxed like an individual. The received-dividend deduction, ownership level, payer type and cross-border withholding should be reviewed before deciding how much profit to distribute.","vmK5LixIULWt2dH9ihYPpcC4nMG0h4eIrRJwRfq3P0Y",{"id":1666,"title":1667,"bestFor":1668,"body":1670,"country":44,"countryFacts":1680,"countrySlug":45,"description":1674,"excerpt":46,"extension":47,"faqs":1681,"flag":68,"heroImage":46,"howItWorks":1690,"lastUpdated":1200,"meta":1696,"metaDescription":1697,"metaTitle":1698,"navigation":74,"otherTaxes":1699,"pageType":371,"path":1707,"relatedFormations":1708,"relatedGuides":1709,"seo":1710,"stem":1711,"summaryCards":1712,"taxBracketSections":1727,"taxBrackets":1728,"taxRates":1729,"taxSlug":254,"taxType":190,"visas":1741,"watchOut":1742,"__hash__":1748},"taxes\u002Fcountry\u002Fjapan\u002Fwealth-tax.md","Wealth tax in Japan",[115,896,612,1489,1669],"Remote founders",{"type":17,"value":1671,"toc":1678},[1672,1675],[20,1673,1674],{},"Japan has no broad annual personal net-wealth tax, which makes the headline answer simple. The practical answer is more detailed: property owners pay recurring local taxes, investors pay tax on income and disposals, and families must model inheritance and gift tax.",[20,1676,1677],{},"For a property owner, the acquisition and registration costs may matter more than the annual fixed asset tax. For a family office, the absence of a wealth tax does not remove reporting, valuation, foreign-asset, succession or source-of-funds obligations.",{"title":39,"searchDepth":40,"depth":40,"links":1679},[],{"region":1182,"currency":1183,"taxTreaties":1184,"euBlacklist":229,"fatfStatus":230},[1682,1684,1687],{"question":65,"answer":1683},"Japan does not currently levy a broad annual personal net-wealth tax on financial assets or crypto. It does levy property ownership taxes and taxes income, gains, inheritances and gifts under separate systems.",{"question":1685,"answer":1686},"How much is property tax in Japan?","The standard fixed asset tax rate is 1.4% of the assessed value of land, buildings and qualifying business-use depreciable assets. City planning tax can add up to 0.3% for land and buildings in designated areas.",{"question":1688,"answer":1689},"Are shares and crypto taxed as wealth in Japan?","Not as a general wealth tax. Dividends, securities gains, crypto income and transfers can still be taxable, and ownership can affect inheritance, gift, reporting and exit-tax exposure.",[1691,1692,1693,1694,1695],"Japan does not currently impose a general annual personal net-wealth tax on bank balances, listed securities, private-company interests or crypto holdings merely because a person owns them. Investment income and disposals can still be taxed under income and capital-gains rules.","The main recurring ownership tax is fixed asset tax. Land, buildings and business-use depreciable assets are generally taxed to the owner as of January 1 at a standard rate of 1.4%, subject to valuation rules, exemptions and local administration.","City planning tax is a municipal tax on land and buildings in designated city-planning areas. The standard rate is up to 0.3%, and it can sit alongside fixed asset tax rather than replace it.","Buying or transferring property can trigger real-estate acquisition tax, registration and license tax, stamp tax and consumption-tax issues. Owning a property can also create rental-income tax, imputed-income issues for some non-residents, and inheritance or gift tax on later transfers.","For businesses, fixed asset tax, enterprise tax, corporate inhabitant tax per-capita levies and business-office tax can create an asset or payroll burden even without a personal net-wealth tax. Large property portfolios therefore need a broader annual-tax model.",{},"Japan wealth-tax guide for investors and property owners. See the current 0% net-wealth position, 1.4% fixed asset tax, city planning tax, property-transfer taxes and succession traps.","Japan wealth tax: net worth, property and asset-tax rules (2026)",[1700,1701,1702,1703,1704,1705,1706],{"title":158,"slug":251,"icon":252},{"title":101,"slug":257,"icon":258},{"title":98,"slug":260,"icon":261},{"title":95,"slug":263,"icon":264},{"title":266,"slug":267,"icon":268},{"title":270,"slug":271,"icon":272},{"title":274,"slug":275,"icon":276},"\u002Fcountry\u002Fjapan\u002Fwealth-tax",[],[],{"title":1667,"description":1674},"country\u002Fjapan\u002Fwealth-tax",[1713,1715,1719,1723],{"label":928,"value":298,"note":1714},"No broad annual personal net-worth levy",{"label":1716,"value":1717,"note":1718},"Fixed asset tax","1.4%","Standard rate on land, buildings and business depreciable assets",{"label":1720,"value":1721,"note":1722},"City planning tax","Up to 0.3%","Land and buildings in city-planning zones",{"label":1724,"value":1725,"note":1726},"Wealth return","No general return","Property and other tax filings can still apply",[],[],[1730,1733,1735,1737],{"label":1731,"value":298,"badge":1732},"Personal net wealth tax","No general levy",{"label":1716,"value":1717,"note":1734},"Standard local rate on assessed property value",{"label":1720,"value":1721,"note":1736},"Designated planning areas",{"label":1738,"value":1739,"note":1740},"Business-office tax","¥600 \u002F m² + 0.25% payroll","Certain large facilities in designated cities",[],[1743,1744,1745,1746,1747],"No net-wealth tax does not mean that wealth is tax-free. Japanese property, investment income, disposals, business assets, inheritances, gifts and transfers each have their own tax rules.","Fixed asset tax uses local valuation and ownership at January 1. The 1.4% rate applies to an assessed tax base, not automatically to the property's market price, and reliefs can apply to qualifying land and buildings.","City planning tax is geographic. A property outside a designated planning area may not bear it, while a property inside one can bear both fixed asset and city planning tax.","Property acquisition taxes and registration costs can be significant even when the annual ownership tax looks modest. Financing, land classification, building use and local rules matter.","High-net-worth families can still face 55% inheritance or gift tax and cross-border asset-scope rules. Estate planning cannot be reduced to the absence of a wealth tax.","kjT_Fj_F0U29FG5gwruN_7otax5C0sDE_DXve-aRe-s",{"id":1750,"title":1751,"bestFor":1752,"body":1753,"country":44,"countryFacts":1763,"countrySlug":45,"description":1757,"excerpt":46,"extension":47,"faqs":1764,"flag":68,"heroImage":46,"howItWorks":1774,"lastUpdated":1200,"meta":1781,"metaDescription":1782,"metaTitle":1783,"navigation":74,"otherTaxes":1784,"pageType":371,"path":1792,"relatedFormations":1793,"relatedGuides":1794,"seo":1795,"stem":1796,"summaryCards":1797,"taxBracketSections":1815,"taxBrackets":1816,"taxRates":1843,"taxSlug":257,"taxType":101,"visas":1863,"watchOut":1864,"__hash__":1870},"taxes\u002Fcountry\u002Fjapan\u002Finheritance-tax.md","Inheritance tax in Japan",[1031,116,896,115,612],{"type":17,"value":1754,"toc":1761},[1755,1758],[20,1756,1757],{},"Japan's inheritance tax is a serious succession tax rather than a simple estate filing. The key calculations are the net estate, the number of statutory heirs, the deemed statutory shares, the relationship of the recipients and the valuation of land and business assets.",[20,1759,1760],{},"Cross-border families need an additional scope analysis before choosing an ownership structure. Japanese residence and nationality history can make foreign assets relevant, while the spouse credit and small-lot land relief can substantially change the amount ultimately payable when their conditions are met.",{"title":39,"searchDepth":40,"depth":40,"links":1762},[],{"region":1182,"currency":1183,"taxTreaties":1184,"euBlacklist":229,"fatfStatus":230},[1765,1768,1771],{"question":1766,"answer":1767},"Does Japan have inheritance tax?","Yes. Japan applies progressive inheritance tax from 10% to 55% after a basic exemption of ¥30 million plus ¥6 million for each statutory heir. The tax can cover worldwide assets in many resident and nationality situations.",{"question":1769,"answer":1770},"How much can a spouse inherit tax-free in Japan?","A surviving spouse can generally use a credit covering the amount actually inherited up to ¥160 million or the spouse's statutory share, whichever is larger, provided the statutory filing and documentation conditions are met.",{"question":1772,"answer":1773},"When is Japanese inheritance tax due?","The inheritance-tax return and payment are generally due within ten months from the day after the taxpayer learns of the death, usually ten months after the date of death.",[1775,1776,1777,1778,1779,1780],"Japan calculates inheritance tax on the net value of inherited and bequeathed assets after permitted deductions, debts and funeral expenses, with certain lifetime gifts and settlement-at-inheritance gifts added under the statutory rules. The basic exemption is ¥30 million plus ¥6 million multiplied by the number of statutory heirs.","The inheritance-tax rate table runs from 10% to 55% and is applied to each statutory heir's deemed share to calculate the total tax, which is then allocated among the actual recipients. The top 55% rate applies above ¥600 million of a statutory heir's taxable share.","A surviving spouse can generally receive a tax credit so that no inheritance tax is due on the amount actually inherited up to ¥160 million or the spouse's statutory share, whichever is larger. The exemption requires the inheritance-tax return and supporting documents where filing is required.","Qualifying residential and business land can receive the small-residential-lot or small-business-lot reduction, commonly an 80% valuation reduction within statutory area limits. It is a technical relief, not an automatic deduction for every home or rental property.","A person with an address in Japan will often bring worldwide inherited assets into scope, while a non-resident may be limited to Japanese-situs assets in some expatriate cases. Japanese nationality, residence during the preceding ten years, temporary-resident status, and whether the decedent or donor was a foreigner or non-resident can change the result.","A return and payment are generally due within ten months from the day after the taxpayer learns of the death, usually the day after death. Japanese inheritance tax is separate from probate, civil-law succession, valuation, registration and any foreign estate or inheritance tax.",{},"Japan inheritance-tax guide for families and expats. See the 10% to 55% rates, ¥30m plus ¥6m per heir exemption, spouse credit, small-lot land relief, cross-border scope and filing deadline.","Japan inheritance tax: rates, exemptions and spouse relief (2026)",[1785,1786,1787,1788,1789,1790,1791],{"title":158,"slug":251,"icon":252},{"title":190,"slug":254,"icon":255},{"title":98,"slug":260,"icon":261},{"title":95,"slug":263,"icon":264},{"title":266,"slug":267,"icon":268},{"title":270,"slug":271,"icon":272},{"title":274,"slug":275,"icon":276},"\u002Fcountry\u002Fjapan\u002Finheritance-tax",[],[],{"title":1751,"description":1757},"country\u002Fjapan\u002Finheritance-tax",[1798,1800,1804,1808,1812],{"label":101,"value":1253,"note":1799},"Progressive rates applied by statutory-share method",{"label":1801,"value":1802,"note":1803},"Basic exemption","¥30m + ¥6m per heir","Net estate threshold",{"label":1805,"value":1806,"note":1807},"Spouse relief","¥160m or legal share","The larger protected amount, subject to filing conditions",{"label":1809,"value":1810,"note":1811},"Filing deadline","10 months","From the day after death is known",{"label":1813,"value":1253,"note":1814},"Gift tax range","Rates vary by relationship, age and type of gift",[],[1817,1819,1822,1825,1829,1832,1835,1839],{"band":1818,"rate":397},"Up to ¥10,000,000 of statutory share",{"band":1820,"rate":520,"note":1821},"¥10,000,001 - ¥30,000,000","Less ¥500,000",{"band":1823,"rate":1338,"note":1824},"¥30,000,001 - ¥50,000,000","Less ¥2,000,000",{"band":1826,"rate":1827,"note":1828},"¥50,000,001 - ¥100,000,000","30%","Less ¥7,000,000",{"band":1830,"rate":1350,"note":1831},"¥100,000,001 - ¥200,000,000","Less ¥17,000,000",{"band":1833,"rate":1354,"note":1834},"¥200,000,001 - ¥300,000,000","Less ¥27,000,000",{"band":1836,"rate":1837,"note":1838},"¥300,000,001 - ¥600,000,000","50%","Less ¥42,000,000",{"band":1840,"rate":1841,"note":1842},"Above ¥600,000,000","55%","Less ¥72,000,000",[1844,1846,1848,1850,1852,1854,1856,1859],{"label":1845,"value":1253,"badge":453},"Inheritance tax range",{"label":1801,"value":1847},"¥30m + ¥6m × statutory heirs",{"label":1849,"value":397},"Statutory share up to ¥10m",{"label":1851,"value":1350},"Statutory share ¥100m - ¥200m",{"label":1853,"value":1837},"Statutory share ¥300m - ¥600m",{"label":1855,"value":1841},"Statutory share above ¥600m",{"label":1857,"value":1806,"note":1858},"Spouse credit","The larger amount, subject to requirements",{"label":1860,"value":1861,"note":1862},"Annual gift exemption","¥1.1 million","Calendar-year basic exemption, subject to the applicable gift regime",[],[1865,1866,1867,1868,1869],"The ¥30 million plus ¥6 million per heir basic exemption is calculated against the net estate and statutory-heir count. It is not a universal ¥30 million allowance for each beneficiary.","The spouse credit is powerful but does not remove the need to model the second death. Passing a large estate to a spouse can defer tax while increasing the taxable estate on the next succession.","The small-lot land relief has residence, ownership, use, relationship and area requirements. A property being a family home or rental property is not enough on its own.","Japan's cross-border scope rules can extend beyond Japanese property. A foreign heir or donor, Japanese nationality, the ten-year residence history and the immigration status at the time of transfer must be checked together.","Lifetime gifts can be pulled back into the inheritance-tax calculation under the calendar-year and settlement-at-inheritance systems. A ¥1.1 million annual gift-tax basic exemption is not a complete estate-planning safe harbour.","785ad4Q2JT3sy39OylugGW6FJJEiz6bqnFmaW2jYvT4",1788594216548]