SORABYCO | Life in Japan

The first time I looked closely at my Japanese payslip, I spent more time reading the deductions than the salary itself. There was income tax, resident tax, pension contributions, and health insurance. Later, long-term care insurance would also become part of the monthly deductions. My first thought was simple: "Living in Japan costs more than I expected." Since I grew up in Korea, I naturally compared the two countries. Both have national health insurance systems, yet Japan somehow felt more expensive. I wanted to understand whether that feeling matched reality or whether I simply wasn't familiar with how the Japanese system worked. After reading about both healthcare systems, I realized the answer was more nuanced than I expected. How Japan's Health Insurance System Works Japan has a universal health insurance system, which means everyone is expected to be covered through either employee health insurance or the National Health Insurance program. The system is funded...

One of the first things that caught me off guard after moving from Korea to Japan was my payslip. At the time, I had only been working in Japan for a short period, so I assumed most of the money deducted from my salary was simply income tax. Then I noticed a separate item for resident tax. My immediate reaction was: “Wait, there’s another tax?” The amount looked significant when it appeared alongside health insurance and pension contributions. I later realized that what confused me most was not necessarily how much I was paying, but why the deduction appeared and how it was calculated. What Is Resident Tax in Japan? Resident tax is a local tax paid to the prefecture and municipality where you live. It is separate from national income tax and is generally calculated using your income from the previous calendar year. In other words, income earned in one year affects the local tax charged in the following year. Income Earned Resident Tax Paid 2025 2026 2026 2027 The exact amount depends o...