Hi,
I would like to know what are resident taxes? Do they apply to foreigners in Japan for a short time ( 1 year)? How does it vary from ward to ward?
Thanks, Monica

This is a brief answer. I'm sure more could be added.

Resident tax is the local tax that you pay (as opposed to the national income tax). If you are a US citizen, you might compare the Resident tax to State Income tax.

All residents must pay Resident tax. In other words, only as a tourist are you exempt. The tax is calculated as a percentage of how much income tax you paid. The payment plan is in three installments, September, December and April of the following year, calculated for the previous year. You are billed automatically since the ward or local government has direct access to your national tax return as filed at your local tax office.

The timeline goes approximately as follows (using 1999 as a base year):
1. Deadline for filing 1999 national income tax return is 15 March 2000.
2. Sometime in August 2000 the resident tax assessment for 1999 is mailed out based on the 1999 returns.
3. By April 2001 you will presumably have paid all three installments of your 1999 resident tax.

If you did not file a return for 1999 because you were not a resident in Japan, you may have a zero resident tax bill for 1999. Since your National Health Insurance premiums are based on your Resident tax, you may be billed the minimum premium for your first year in Japan. Lots of foreigners are then unpleasantly surprised when they receive their new premium assessment in the second year of their residence in Japan, when they are finally being assessed a Resident tax, and the NHI premiums reflect this.

For information on filing your Japanese national tax return you might start at the following link:
http://www.tokyowithkids.com/fyi/taxes.html

Can anybody tell me the approximate % rates of residents taxes in Minato-ku and Shinagawa-ku? We are contempating a house move and these numbers could have a big effect on our choice of location.

Hi Cathy,

It's my understanding that these rates vary depending on your income. You might try contacting the ward offices directly and asking them how much the tax would be for your household based on your income.

Good luck!