WorldTax Compareโ† All Comparisons

India vs Japan
Tax Rate Comparison

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

๐Ÿ‡ฎ๐Ÿ‡ณ India
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€“30%
Zero tax slab expanded; new regime standard
No change
5โ€“45%
Basic deduction increase for low earners
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
0โ€“28%
Further GST rationalization expected
No change
8โ€“10%
No rate change; digital services tax under review
No change
Corporate Tax Rate
Corporate Tax Rate
22โ€“25%
Pillar Two domestic rules being finalized
No change
~30.62%
Global Minimum Tax applies to large MNCs
No change
Capital Gains Tax
Capital Gains Tax
12.5โ€“20%
12.5% LTCG equity; 20% property with indexation
No change
20.315%
Expanded NISA (tax-free investment) ongoing
No change
Social Security & Payroll
Social Security / Payroll
24%
New social security code implementation ongoing
No change
~28.5%
Coverage expansion to part-time workers ongoing
No change
State, Regional & Local Taxes

๐Ÿ‡ฎ๐Ÿ‡ณ India โ€” State, Professional & GST Variation

India's 28 states levy professional tax (up to โ‚น2,500/year), stamp duty on property (3%โ€“8%), and state excise on alcohol. GST has largely unified indirect taxes but petroleum products remain state-controlled. Property tax (nagar nigam) varies by city. Maharashtra, Karnataka, and Tamil Nadu have higher professional taxes.

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.

India vs Japan: Key Tax Differences (2026)

๐Ÿ’ฐ Income Tax: ๐Ÿ‡ฏ๐Ÿ‡ต Japan has a higher top income tax rate (0โ€“30% vs 5โ€“45%). ๐Ÿ‡ฎ๐Ÿ‡ณ India is more favourable for high earners.

๐Ÿ›’ VAT/Sales Tax: India has a higher consumption tax (0โ€“28% vs 8โ€“10%).

๐Ÿข Corporate Tax: ๐Ÿ‡ฎ๐Ÿ‡ณ India offers a lower corporate rate (25% vs 30.62%), which can influence business location decisions.

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