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Australia vs Japan
Tax Rate Comparison

Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.

๐Ÿ‡ฆ๐Ÿ‡บ Australia
vs
๐Ÿ‡ฏ๐Ÿ‡ต Japan
Tax Year:

๐Ÿ’ฐ Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country โ€” side by side.

Enter your annual income above to see your personal tax comparison โ†’
Individual Income Tax (Top Marginal Rate)
Top Income Tax Rate
0โ€“45%
+ 2% Medicare; thresholds indexed to CPI
No change
5โ€“45%
Basic deduction increase for low earners
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
10%
No change planned
No change
8โ€“10%
No rate change; digital services tax under review
No change
Corporate Tax Rate
Corporate Tax Rate
25โ€“30%
Stable; Pillar Two active for large MNCs
No change
~30.62%
Global Minimum Tax applies to large MNCs
No change
Capital Gains Tax
Capital Gains Tax
0โ€“22.5%
50% discount maintained
No change
20.315%
Expanded NISA (tax-free investment) ongoing
No change
Social Security & Payroll
Social Security / Payroll
12%
12% super guarantee; target rate reached
No change
~28.5%
Coverage expansion to part-time workers ongoing
No change
State, Regional & Local Taxes

๐Ÿ‡ฆ๐Ÿ‡บ Australia โ€” State & Territory Taxes

Australia's 6 states and 2 territories levy payroll tax (4.75%โ€“6.85%), stamp duty on property, and land tax on investment properties. There is no state income tax โ€” income tax is federal only. The Stage 3 tax cuts (effective July 2024) restructured brackets significantly. The ACT is progressively replacing stamp duty with broad-based land value tax. Councils levy rates on property owners.

๐Ÿ‡ฏ๐Ÿ‡ต Japan โ€” Prefectural & Municipal Inhabitant Tax

Japan's 47 prefectures levy inhabitant tax (ไฝๆฐ‘็จŽ) at a flat 10% on top of national income tax โ€” 4% prefectural + 6% municipal. A reconstruction special income tax of 2.1% of national tax applies through 2037. Property acquisition tax and fixed asset tax (1.4% of assessed value) are levied locally. Large cities impose additional taxes on large businesses.

โš ๏ธ Disclaimer: Rates shown are standard top/headline rates for informational purposes. Actual tax liability depends on income level, residency, deductions, and tax treaties. 2025โ€“2026 data reflects announced or enacted rates and may be subject to change. Not financial or legal advice.

Australia vs Japan: Key Tax Differences (2026)

๐Ÿ’ฐ Income Tax: Australia and Japan have similar top income tax rates (0โ€“45% vs 5โ€“45%).

๐Ÿ›’ VAT/Sales Tax: Both countries have comparable consumption tax rates (10% vs 8โ€“10%).

๐Ÿข Corporate Tax: ๐Ÿ‡ฆ๐Ÿ‡บ Australia offers a lower corporate rate (30% vs 30.62%), which can influence business location decisions.

๐Ÿ“ˆ Capital Gains: ๐Ÿ‡ฏ๐Ÿ‡ต Japan taxes investment gains at a lower rate (20.315% vs 22.5%), benefiting investors.

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