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If you earn 20M yen a year, you're paying 41% of that in income tax, resident tax, and compulsory social security payments.[1] If you earn 200k USD in Californ
by getoj 5y ago
If you earn 20M yen a year, you're paying 41% of that in income tax, resident tax, and compulsory social security payments.[1]
If you earn 200k USD in California, you pay 35.5% of that in total taxes.[2]
I suppose the latter doesn't count the ridiculous US health insurance system, but Japan is by no means on the low end of taxation, and it's the highest rate in APAC when you account for social security.
[1]https://japantaxcalculator.com/ https://japantaxcalculator.com/
[2]https://www.talent.com/tax-calculator?region=California https://www.talent.com/tax-calculator?region=California
- thewileyone 5y agoCalifornia has state income tax and county-based sales tax, property tax if you own a home. When I owned a house there, I was paying nearly 45% in just federal and state income taxes, even after deducting the house.
- cjsplat 5y agoFor California, don't forget to add an extra ~$12k for the employer's match on social security and medicare, so you have an extra 6% on the CA tax balance sheet. I don't know if there is an equivalent employer tax is directly linked to employee pay in Japan. One could argue that this isn't really a tax that the employee pays, but of course it comes directly out of the business under the "cost per employee" bucket.
- dustintrex 5y agoIf you earn 20M in Japan, you're doing very well. The national average is around 5M, and you would be considered well-off if you can hit 10M. I agree that Japan isn't low tax, particularly if you're a high earner, but for most people the taxation is not as extreme as this thread is making it sound.