Japan resident tax, explained
Resident tax (住民税) confuses almost every foreigner in Japan. Here is what you need to know.
It is based on last year's income
Resident tax is calculated from your previous calendar year's income. In your first year in Japan you usually pay little or none — and then it appears the following year.
It is collected from around June
Employers typically start deducting the new resident tax amount from June, which is why many people see their take-home pay drop mid-year.
It depends on where you live on January 1
Resident tax is paid to the municipality where you were registered as of January 1. The rate is about 10% plus a small flat per-capita amount.