Residence Tax

Residence tax is the amount of money that people living in the city must pay to the local tax office to contribute to the maintenance of the local social-welfare services. Residence tax is a tax that every individual with income in a year over the limit (103,000 yen / year) must pay, regardless of whether you are a student, international students, or foreigners.

Residence tax is calculated based on the income of the previous year. Therefore, your first year in Japan you don’t have to pay for this tax. However, the following year, Tax authorities will rely on your income in the previous year to calculate the amount of tax you have to pay.