United States vs Japan
Tax Rate Comparison
Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.
💰 Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country — side by side.
Individual Income Tax (Top Marginal Rate)
VAT / GST / Sales Tax
Corporate Tax Rate
Capital Gains Tax
Social Security & Payroll
🇺🇸 United States — State & Local Taxes
The U.S. has 50 states each setting their own income tax (0%–13.3%). California tops at 13.3%, while Texas, Florida, and Nevada levy no state income tax. NYC adds its own income tax (up to 3.876%). Sales taxes vary from 0% (Oregon) to over 11% combined. Property taxes are primarily local. Some states like Washington have introduced capital gains levies.
🇯🇵 Japan — Prefectural & 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.
United States vs Japan: Key Tax Differences (2026)
💰 Income Tax: 🇯🇵 Japan has a higher top income tax rate (10–37% vs 5–45%). 🇺🇸 United States is more favourable for high earners.
🛒 VAT/Sales Tax: United States has a higher consumption tax (0–11% vs 8–10%).
🏢 Corporate Tax: 🇺🇸 United States offers a lower corporate rate (21% vs 30.62%), which can influence business location decisions.