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Retirement Allowance Tax Calculator Japan
Tax on a retirement allowance in Japan, with the service-year deduction and the half rule.
Allowance and years of service
Director for 5 years or less
Leaving because of a disability
Allowance after tax
¥19,594,298
Tax ¥405,702
| Retirement income deduction | ¥15,000,000 |
| Taxable income (after deduction × ½) | ¥2,500,000 |
| Income tax (incl. 2.1%) | ¥155,702 |
| Resident tax (10%) | ¥250,000 |
| Take-home | ¥19,594,298 |
If you give your employer the declaration form, the tax is taken at source and final. Without it, 20.42% is withheld and you settle in a tax return.
Deduction by years of service
| Years | Deduction | Tax-free up to |
|---|---|---|
| 5 | ¥2,000,000 | ¥2m |
| 10 | ¥4,000,000 | ¥4m |
| 15 | ¥6,000,000 | ¥6m |
| 20 | ¥8,000,000 | ¥8m |
| 25 | ¥11,500,000 | ¥11.5m |
| 30 | ¥15,000,000 | ¥15m |
| 35 | ¥18,500,000 | ¥18.5m |
| 38 | ¥20,600,000 | ¥20.6m |
| 40 | ¥22,000,000 | ¥22m |
¥400k a year up to 20 years (minimum ¥800k), ¥700k a year after that.
For a lump sum. Getting iDeCo or pension lump sums in the same or nearby years changes the result. Not tax or labour advice. 🔒 Everything stays on your device.
✅ Rules last checked:
📚 Official sources: 国税庁：退職所得（No.1420）
We build every tool from the official rules and re-check them when they change. Always confirm with the official source before you rely on a result.
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Questions people ask
QIs a retirement allowance taxed?
ANot up to the deduction: ¥15m tax-free after 30 years.