Withholding Tax

Withholding Tax Calculator

Calculate Japanese withholding tax and net payment from gross fees. Supports 10.21% / 20.42% rates including the Special Reconstruction Surtax.

What is Withholding Tax in Japan?

In Japan, when a business pays fees to freelancers, consultants, lawyers, accountants, or other professional service providers, the payer is legally required to withhold income tax from the payment and remit it to the tax office on behalf of the recipient. This is called 源泉徴収 (Gensen Chōshū).

The standard withholding rate is 10.21% (including the Special Reconstruction Surtax). For fees exceeding ¥1,000,000, the portion above that threshold is taxed at 20.42%.

If you are issuing invoices to Japanese companies or receiving payments in Japan, this calculator helps you determine the correct withholding tax amount and the net transfer amount.

Gross Fee → Withholding Tax & Net Payment

Gross Fee (excl. tax, ¥)

Consumption Tax Rate

Withholding Base

Excl. Tax Incl. Tax

Gross (incl. tax) ¥0

Withholding Tax ¥0

Net Payment ¥0

Applied Rate: 10.21%

Net Payment → Gross Fee & Withholding Tax

Desired Net Payment (¥)

Consumption Tax Rate

Withholding Base

Excl. Tax Incl. Tax

Required Gross Fee (excl. tax) ¥0

Gross (incl. tax) ¥0

Withholding Tax ¥0

Shows the minimum gross fee that yields the same net payment

About This Tool

When paying fees to freelancers, sole proprietors, or professional service providers in Japan, the payer must withhold income tax and remit it to the National Tax Agency. This tool instantly calculates the withholding tax and net transfer amount from the gross fee. Use it to verify invoices or prepare payment records.

Formulas (including Special Reconstruction Surtax)

Up to ¥1,000,000: Withholding Tax = Fee × 10.21%
Exceeding ¥1,000,000: Withholding Tax = (Fee − ¥1,000,000) × 20.42% + ¥102,100
Fractions below ¥1 are rounded down (per National Tax Agency guidelines)

Should I calculate on the pre-tax or post-tax amount?

According to the National Tax Agency (Income Tax Basic Circular 204-2), withholding tax is in principle levied on the consumption-tax-inclusive amount. However, if the invoice clearly separates the fee and consumption tax, withholding may be calculated on the pre-tax amount only.

Excl. Tax (recommended): For standard invoices that separate the fee and consumption tax. Results in lower withholding tax and higher take-home pay for freelancers.
Incl. Tax: When the invoice does not separate consumption tax, or when the payer issues payment records on a tax-inclusive basis.

How to Use

In the left panel "Gross Fee → ...", enter the pre-tax fee to instantly see the withholding tax and net payment.
In the right panel "Net Payment → ...", enter your desired take-home amount to reverse-calculate the required gross fee.

Note: This tool assumes standard withholding tax for manuscript fees, lecture fees, professional service fees, etc. It does not cover special cases such as judicial scrivener fixed deductions or social insurance medical fees. Please confirm final tax amounts with a tax advisor or the National Tax Agency.

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