Local Income tax

Prefectural inhabitant tax and municipai inhabitant tax are collectively called "Local Income tax".
It may be confusing that sometimes it is called differently, such as CHIHOU ZEI(地方税 literally translated as "Local tax"), JUMIN ZEI(住民税 " Inhabitant tax)or SHIMIN ZEI(市民税 " Citizens tax). However, they all means a specific kind of individuals taxes, imposed on the almost the same tax bases to National Income tax by the Local government.

Another confusing thins is that you are supposed to pay to 2 taxation bureaus ( Prefecture's bureau and Municipal bureaus) together at one time.
That is, the Municipality where you live and the Prefecture that has the jurisdiction on the municipality's area impose their tax respectively, by the same calculation method. When you check the web site of a prefectural tax bureau, it may tell only about the prefectural tax. Formally, these 2 taxes are different kinds of taxes. But, you can practically regard them as 1 set. Because they are notified and collected together in a lump sum by the municipal government.

It is paid to the Local bodies where you have your address(domicile) or the main residence as of January 1 of the relevant year. In other words, you don't have to pay the Local income tax to any Japanese city if you don't have a address nor a residence in Japan as of the date.

〔In Japanese〕





Local income tax consists of the amount levied on a per-capita basis and that levied on per-income basis.
The amount of the former is no more than several thousands yen. So, that is not so important.
The latter is calculated by multipling 10% ( 4% as prefectural tax and 6% as municipal tax) to your income of the previous year. The taxable income is calculated similarly to the National Income tax.
For many people, the amount of the local Income tax is larger than the National Income tax. It is because the National Income tax rate (which is progressive along with their income amount) applied to many people is lower than 10%. Regarding the National Income tax rate, please refer to the relevant page of this site.

〔In Japanese〕


Procedures for taxation and payment

The main difference between National Income tax and Local Income tax is that the latter is calculated by the local government, not by yourself. You know, National Income tax is supposed to be calculated and stated by yourself under the self-assessment system.The taxation method of these 2 taxes are corresponding. That is, the taxable base of National Income tax is calculated by the tax payers. It of Local Income tax is calculated by the local government, in line with it of National Income tax .

You shall pay the tax( both the prefecutural tax and the municipality tax together) in a lump sum to the municipality bureau. It shall notify you when and how much you pay, every April or May.
For example, Gotsu city expects her residents to pay the tax in 4 installments, at the end of June, August,October and the next January.
However, If you are a regular employee, that may be withheld from your monthly salary and paid by your employer to the local government, under so-called " Special collection system". In this case, the tax amount is notified to you via your employer.

〔In Japanese〕