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Japan vs China
Tax Rate Comparison

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

๐Ÿ‡ฏ๐Ÿ‡ต Japan
vs
๐Ÿ‡จ๐Ÿ‡ณ China
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
5โ€“45%
Basic deduction increase for low earners
No change
3โ€“45%
Continued deduction reforms; threshold adjustments likely
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
8โ€“10%
No rate change; digital services tax under review
No change
6โ€“13%
13%/9%/6% structure maintained
No change
Corporate Tax Rate
Corporate Tax Rate
~30.62%
Global Minimum Tax applies to large MNCs
No change
25%
Pillar Two implementation progressing
No change
Capital Gains Tax
Capital Gains Tax
20.315%
Expanded NISA (tax-free investment) ongoing
No change
20%
National property tax reform bill still pending
No change
Social Security & Payroll
Social Security / Payroll
~28.5%
Coverage expansion to part-time workers ongoing
No change
~36%
Gradual unification of social insurance base ongoing
No change
State, Regional & Local 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.

๐Ÿ‡จ๐Ÿ‡ณ China โ€” Provincial, Municipal & Surcharge Taxes

China's 34 provincial-level regions vary in social insurance rates (employer contributions: ~16โ€“23% depending on province). Cities impose Urban Maintenance & Construction Tax (1โ€“7% of VAT paid). Education surcharges add 3โ€“5%. Local governments levy land use taxes by city tier. Free Trade Zones often have preferential 15% corporate rates.

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.

Japan vs China: Key Tax Differences (2026)

๐Ÿ’ฐ Income Tax: Japan and China have similar top income tax rates (5โ€“45% vs 3โ€“45%).

๐Ÿ›’ VAT/Sales Tax: China has a higher consumption tax (8โ€“10% vs 6โ€“13%).

๐Ÿข Corporate Tax: ๐Ÿ‡จ๐Ÿ‡ณ China offers a lower corporate rate (25% vs 30.62%), which can influence business location decisions.

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