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Japan vs Costa Rica
Tax Rate Comparison

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

🇯🇵 Japan
vs
🇨🇷 Costa Rica
Tax Year:

💰 Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country — side by side.

Enter your annual income above to see your personal tax comparison →

Individual Income Tax (Top Marginal Rate)

Top Income Tax Rate
5–45%
Basic deduction increase for low earners
No change
0–25%
25% top; fiscal consolidation achieved
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
8–10%
No rate change; digital services tax under review
No change
13%
13% IVA maintained
No change

Corporate Tax Rate

Corporate Tax Rate
~30.62%
Global Minimum Tax applies to large MNCs
No change
30%
30%; Pillar Two for MNCs; tech sector growing
No change

Capital Gains Tax

Capital Gains Tax
20.315%
Expanded NISA (tax-free investment) ongoing
No change
15%
15% maintained
No change

Social Security & Payroll

Social Security / Payroll
~28.5%
Coverage expansion to part-time workers ongoing
No change
~41.17%
High contributions; reform proposals for sustainability
No change
State, Regional & Local Taxes

🇯🇵 JapanPrefectural & Municipal Inhabitant Tax

Japan's 47 prefectures levy inhabitant tax (住民税) at a flat 10% on top of national income tax — 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.

🇨🇷 Costa RicaMunicipal Taxes

Costa Rica's 84 cantons (municipalities) levy the impuesto sobre bienes inmuebles (property tax at 0.25% of assessed value), business licences (patente municipal), and construction permits. The Municipalidad de San José and other urban cantons have highest rates. National taxes are administered by the Ministry of Finance (Hacienda). Costa Rica underwent significant fiscal reform in 2018–19 to address a fiscal deficit, converting the sales tax to a comprehensive VAT and modifying income tax.

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

Japan vs Costa Rica: Key Tax Differences (2026)

💰 Income Tax: 🇯🇵 Japan has a higher top income tax rate (5–45% vs 0–25%). 🇨🇷 Costa Rica is more favourable for high earners.

🛒 VAT/Sales Tax: Costa Rica has a higher consumption tax (8–10% vs 13%).

🏢 Corporate Tax: 🇨🇷 Costa Rica offers a lower corporate rate (30% vs 30.62%), which can influence business location decisions.

📈 Capital Gains: 🇨🇷 Costa Rica taxes investment gains at a lower rate (15% vs 20.315%), benefiting investors.

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