Freelance taxes in Japan: income tax, resident tax, consumption tax

Freelance taxes in Japan come in four layers. As of October 2026, a freelancer can owe national income tax (5% to 45%, plus 2.1% reconstruction tax), local resident tax, enterprise tax (個人事業税) in many trades, and consumption tax if sales are high enough or you register for the invoice system. You file one return between 16 February and 15 March. Electing a blue return can lower your taxable income by up to ¥650,000.

Income tax (所得税)

Income tax is calculated as taxable income times a rate, minus a fixed amount. The National Tax Agency’s table, as of 1 April 2026, is:

Taxable income is first rounded down to the nearest ¥1,000. On top, reconstruction special income tax (復興特別所得税) is generally 2.1% of the base income tax. The 2026 tax reform changes this rate and extends its period from 2027, but the agency says the combined rate stays the same.

Resident tax (住民税)

Resident tax goes to your city and prefecture, and the city bills you. It applies to anyone with an address in the city on 1 January whose income exceeds certain thresholds, foreign residents included, and it is based on the previous calendar year’s income (Hiroshima City). Employees usually have it deducted from pay. Without wage deduction, as a freelancer, you pay by payment slip or bank transfer.

Two points matter for foreign residents:

• Because it is based on the previous year’s income, your first bill comes after you have started earning, so budget for it.
• If you leave Japan after 1 January you still owe that year’s tax. Hiroshima City says you must appoint a tax agent still living in Japan or submit the form for forgoing one; ask your city office.

Rates and per-person amounts vary by municipality, so check your city office. For more, see resident tax in Japan for foreigners.

Enterprise tax (個人事業税)

Enterprise tax is a prefectural tax on individuals running a designated business (Tokyo lists 70, and says almost all businesses fall under it). Tokyo’s rates are 3% to 5% by category, mostly 5%. A ¥2.9 million yearly business owner deduction (業主控除) applies (prorated if you work under a year), which reduces the taxable base.

In Tokyo, if you file an income or resident tax return you can report the business tax information on those forms instead of filing separately. It is billed in two installments, due 31 August and 30 November. These are Tokyo’s rules; other prefectures may differ, so check yours.

Consumption tax (消費税)

Consumption tax is exempt in principle if your taxable sales in the base period were ¥10 million or less. For an individual, the base period is the year two years earlier. You are not exempt if you registered as a qualified invoice issuer, if your sales from 1 January to 30 June of the previous year exceeded ¥10 million, or if you elected taxable status. The invoice choice and its relief rules are in our invoice system guide.

Blue return and filing

Ordinary returns are filed and paid from 16 February to 15 March. Two forms matter when you start:

• Opening notification (個人事業の開廃業等届出書): due by the filing deadline of the year you started.
• Blue return approval application (青色申告承認申請書): in principle by 15 March of the year you want to start. If you began business on or after 16 January, file within 2 months of starting.

The blue return special deduction depends on how you keep books:

The deduction cannot exceed the income it applies to, and it must be claimed on a return filed by the regular deadline.

What to check as a foreign resident

• Residence status. Your visa decides whether you may run a business or freelance. Confirm with immigration or an administrative scrivener (行政書士) first.
• Tax residency. Your tax category affects what is taxed in Japan. See tax residency for foreigners.
• Insurance and pension. Freelancers without an employer cover generally pay National Health Insurance and pension themselves. See National Health Insurance and the pension guide.
• Your return. Our tax return guide covers the filing steps.

Rates and thresholds change. Check the National Tax Agency’s pages and your city and prefecture before filing. If you plan to incorporate, see starting a company in Japan as a foreigner.