Take-Home Pay Calculator for Freelancers in Japan

For self-employed foreign residents (kojin jigyonushi, 個人事業主). Calculate net income after income tax, resident tax, national health insurance, national pension, and business tax.

Input

Annual sales (revenue)

JPY

Annual business expenses

JPY

Blue return deduction

Subject to business tax (5% for IT, design, consulting, etc.)

Estimated Result

Annual take-home (estimated)

3,699,341JPY

Monthly: 308,278 JPY / Rate vs sales 61.7%

Income (sales − expenses): 5,000,000 JPY
Business income (after blue deduction): 4,350,000 JPY
National Pension (Kokumin Nenkin): −215,040 JPY
National Health Insurance (Shinjuku, FY2026): −481,809 JPY
Income tax: −199,800 JPY
Special reconstruction tax: −4,195 JPY
Resident tax: −327,315 JPY
Business tax (5%): −72,500 JPY
Total deductions: 1,300,659 JPY

* 2026 tax year. National Pension monthly 17,920 JPY (Reiwa 8). National Health Insurance based on Shinjuku Ward FY2026 rates for under-40 (medical 7.51% + 47,600 / pension support 2.80% + 17,600 / child support 0.27% + 1,873). Income tax basic deduction 620,000 - 1,040,000 JPY by total income (FY2026 reform). Resident tax basic deduction 430,000 JPY. Spouse/ dependent/insurance deductions not considered.

How to use

Enter your annual sales (revenue) excluding consumption tax.
Enter your annual business expenses (deductible costs).
Choose your blue return deduction (650,000 JPY for e-Tax filers — recommended).
Check whether your industry is subject to business tax (most consulting/IT/design are).

FAQ

Q. What is "blue return" (Aoiro Shinkoku)?: A special tax filing status that gives you up to 650,000 JPY tax deduction. To qualify: (1) submit a "Blue Return Application" to your tax office in advance, (2) keep double-entry bookkeeping (any modern accounting software handles this), (3) file electronically via e-Tax. The 650,000 JPY deduction saves about 130,000 JPY in income+resident tax for someone with 5M JPY income.
Q. What can I claim as expenses?: Anything genuinely required for your business: computer, software subscriptions (Adobe, GitHub, etc.), office rent or home office (apportioned), internet/phone, business books, professional dues, travel for client meetings, business meals (with receipts and notes about the meeting). Keep receipts for 7 years.
Q. Why is National Health Insurance so high?: Unlike employees who split health insurance with their employer, self-employed people pay 100%. The rate also depends on your municipality (this calculator uses Shinjuku Ward rates). Annual NHI premium can easily reach 50-70% of what an employee with the same income pays. Plan for cash flow accordingly, especially in your first year as NHI is calculated from prior year's income.
Q. What about consumption tax?: If your annual sales are 10M JPY or more (or you opt in via the new Invoice System), you must collect and remit consumption tax (10%). This calculator excludes consumption tax. For most foreign freelancers earning under 10M JPY, this is not relevant. For higher earners, consult a tax accountant on the qualified invoice issuer registration.
Q. Do I need to file a tax return?: Yes. As a sole proprietor, you must file annually between February 16 and March 15. You can file online via e-Tax (highly recommended for the 650,000 JPY blue return deduction) or paper form at your tax office.
Q. Can foreigners be sole proprietors in Japan?: Yes, but your visa status matters. Most work visas restrict you to specific employers. To freelance legally, you typically need: Permanent Resident, Spouse of Japanese National, Long-Term Resident, Highly Skilled Professional, or Business Manager visa. Some other visas may allow side income with permission. Consult an immigration lawyer if unsure.