Japan vs Taiwan
Tax Rate Comparison
Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.
๐ฐ Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country โ side by side.
๐ฏ๐ต Japan โ Prefectural & Municipal Inhabitant Tax
Japan's 47 prefectures levy inhabitant tax (ไฝๆฐ็จ) 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.
๐น๐ผ Taiwan โ Municipal & County Tax Levies
Taiwan's 6 special municipalities (including Taipei, New Taipei, Kaohsiung), 3 cities, and 13 counties each levy local taxes including land value tax (1%โ5.5% of announced land value), house tax (1.5%โ3.6% on residential; 3%โ5% commercial), and vehicle license tax. Land Value Increment Tax (LVIT) on land price gains is a major revenue source. The National Taxation Bureau administers national income and business taxes.
Japan vs Taiwan: Key Tax Differences (2026)
๐ฐ Income Tax: ๐ฏ๐ต Japan has a higher top income tax rate (5โ45% vs 5โ40%). ๐น๐ผ Taiwan is more favourable for high earners.
๐ VAT/Sales Tax: Japan has a higher consumption tax (8โ10% vs 5%).
๐ข Corporate Tax: ๐น๐ผ Taiwan offers a lower corporate rate (20% vs 30.62%), which can influence business location decisions.
๐ Capital Gains: ๐น๐ผ Taiwan taxes investment gains at a lower rate (0% vs 20.315%), benefiting investors.