Withholding Tax Calculator
This browser-based tool automatically calculates withholding tax and net income from freelance fees in Japan. Supports two-tier tax rates: 10.21% for amounts up to 1 million yen and 20.42% for amounts exceeding 1 million yen. Features consumption tax toggle and reverse calculation from net income. No registration required, and no data is transmitted externally.
What You Can Do
The Withholding Tax Calculator automatically calculates the tax deducted from freelance fees in Japan. A rate of 10.21% applies to fees up to 1 million yen, and 20.42% applies to amounts exceeding 1 million yen. Listing consumption tax separately reduces the taxable base and increases net income.
- Bi-directional calculation: Calculate net from gross or reverse calculate gross from net
- Consumption tax toggle: Switch between tax-excluded and tax-included for accurate calculation
- Formula display: Shows calculation steps including two-tier rates
Calculate withholding tax and net income from freelance fees. Supports two-tier tax rates over 1 million yen and consumption tax handling.
💰 Enter Amount
📊 Results
Withholding Tax Quick Reference (Tax-Excluded Fees)
| Fee Amount | Withholding Tax | Net Income |
|---|---|---|
| 100,000円 | 10,210円 | 89,790円 |
| 200,000円 | 20,420円 | 179,580円 |
| 300,000円 | 30,630円 | 269,370円 |
| 500,000円 | 51,050円 | 448,950円 |
| 800,000円 | 81,680円 | 718,320円 |
| 1,000,000円 | 102,100円 | 897,900円 |
| 1,200,000円 | 142,940円 | 1,057,060円 |
| 1,500,000円 | 204,200円 | 1,295,800円 |
| 2,000,000円 | 306,300円 | 1,693,700円 |
💡 Use Cases
- Creating invoices - Include accurate withholding tax amounts
- Verifying payments - Reverse calculate original fee from received amount
- Creating estimates - Calculate invoice amount from desired net income
- Tax return preparation - Track annual withholding amounts
- Client accounting - Calculate withholding on contractor payments
📖 How to Use
Basic Usage
Select "Calculate Net from Gross" or "Calculate Gross from Net" and enter the amount. Results are calculated automatically.
Calculation Modes
- Calculate Net from Gross: Calculate actual received amount from invoice total
- Calculate Gross from Net: Calculate required invoice amount from desired net income
Consumption Tax Handling
- Excluded (Listed Separately): When fee and consumption tax are listed separately on invoice. Only the fee is subject to withholding, increasing net income (Recommended)
- Included: When consumption tax is included in a single amount. The entire amount is subject to withholding
- None: For tax-exempt transactions or tax-exempt businesses
📚 Understanding Withholding Tax
What is Withholding Tax?
Withholding tax is a system where the payer (client) deducts income tax at the time of payment and remits it to the government. Most fees received by freelancers and sole proprietors in Japan are subject to this withholding.
The withheld amount is reconciled through annual tax returns. If the withheld amount exceeds annual income tax, you receive a refund; if less, you pay the difference.
Withholding Tax Rates (as of 2025)
Withholding tax rates for freelance fees are divided into two tiers at 1 million yen:
- Up to 1 million yen: Fee × 10.21% (10% income tax + 0.21% reconstruction tax)
- Over 1 million yen: (Fee - 1,000,000) × 20.42% + 102,100 yen
Example: For a fee of 1.2 million yen: (1,200,000 - 1,000,000) × 20.42% + 102,100 = 142,940 yen
The reconstruction tax (0.21%/0.42%) continues until December 31, 2037. The 2024 fixed tax reduction does not affect withholding rates and is reconciled at tax return.
Consumption Tax Listing and Net Income
When fee and consumption tax are clearly separated on the invoice, consumption tax is excluded from withholding, increasing net income.
【Example】 Fee of 500,000 yen
- ❌ Combined (550,000 yen incl. tax): Withholding = 550,000 × 10.21% = 56,155 yen → Net 493,845 yen
- ✅ Separate (Fee 500,000 + Tax 50,000): Withholding = 500,000 × 10.21% = 51,050 yen → Net 498,950 yen
Difference: 5,105 yen more net income
Fees Subject to Withholding
The following types of fees are subject to withholding:
- Manuscript fees, lecture fees, design fees
- Fees to lawyers, CPAs, tax accountants, etc.
- Fees to professional athletes, models, entertainers
- Fees to hostesses and companions
- Medical fees from social insurance payment funds
For details, see NTA "No.2792 Fees Subject to Withholding" (Japanese).
Obligations of Payers
Withholding agents (corporations, sole proprietors with employees, etc.) must withhold tax when paying freelancers and remit it by the 10th of the following month.
Failure to withhold may result in non-payment surcharges (10%) and delinquent taxes. Even if the invoice does not specify withholding amount, the payer is responsible for withholding.
❓ FAQ
It combines 10% income tax and 0.21% reconstruction special income tax. The reconstruction tax applies until December 31, 2037. For amounts over 1 million yen, 20.42% (20% + 0.42%) applies to the excess.
10.21% applies to the first 1 million yen, and 20.42% applies to the excess. For example, for 1.2 million yen: (1M × 10.21%) + (200K × 20.42%) = 102,100 + 40,840 = 142,940 yen.
If fee and consumption tax are clearly separated on the invoice, consumption tax is excluded from withholding. If combined, the entire amount is subject. Separate listing is recommended for higher net income.
Writers, lecturers, designers, lawyers, accountants, tax accountants, professional athletes, models, entertainers, and more. Regular programming or consulting may not be subject in some cases.
Use the "Calculate Gross from Net" mode in this tool. Enter your desired net income, and it will automatically calculate the required invoice amount.
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