Resident tax (住民税, juuminzei) is a tax charged by the local government every June that covers the period of the previous calendar year.
Who Has To Pay The Resident Tax
Depending on your job status, nationality, and how long you have been living in Japan, you may or may not be excused from the resident tax. You should ask your school about resident tax when you arrive in Japan.
Why it Matters
In most situations, your school will add an extra amount to your total salary to cover the cost of this tax. They withhold this amount and then pay the tax for you.
However, in some cases, your school will give you an extra amount in your paycheck that is intended to cover the cost of the resident tax, and you are expected to pay the tax later yourself.
Sometimes JETs do not realize that they are receiving an extra amount in their paycheck for the resident tax and spend it accidentally, only to be surprised by a hefty tax bill later on. Don’t let this happen to you!
- Also note that if you break contract and remain in Japan, you will be responsible for paying this tax yourself.