Japanese retirement-allowance tax estimator — 退職所得控除 calculator
Enter your retirement allowance and tenure to estimate the retirement-income deduction (退職所得控除), taxable amount with the 1/2 rule, income tax, special reconstruction tax, resident tax and net take-home. Supports the short-tenure variants (短期退職手当等 / 特定役員退職手当等) and the disability bump. Runs entirely inside your browser — figures never leave your device.
How to use
Enter the pre-tax retirement allowance and your years of service, then pick the tenure category (General / Short / Officer-short). Fractional years are rounded up internally (e.g. 25y6m → 26y). Toggle Disability retirement to add the JPY 1,000,000 deduction bonus. The result shows the retirement-income deduction, the taxable retirement income (rounded down to the nearest JPY 1,000), the income tax, the special reconstruction tax, the resident tax, the total tax and the net take-home. The estimate covers only retirement income; combined-income filings or special resident-tax rules need separate adjustments.
FAQ
- How is the retirement-income deduction computed?
- For service of N years, deduction is max(JPY 800,000, JPY 400,000 × N) when N ≤ 20, and JPY 8,000,000 + JPY 700,000 × (N - 20) when N > 20. Disability retirement adds another JPY 1,000,000.
- How does the 1/2 rule work?
- General category: (allowance - deduction) ÷ 2 becomes taxable income. Short tenure (non-officer ≤5y): the first JPY 3 million above the deduction is halved, anything beyond it is not. Officer short tenure (≤5y): the 1/2 rule does not apply.
- Is the income tax progressive?
- Yes. The taxable retirement income is taxed via the standard NTA progressive table (seven brackets, 5% to 45%). Retirement income is separated from your other income for tax purposes.
- What is the special reconstruction tax?
- A 2.1% surtax on income tax in force from 2013 through 2037 to fund Great East Japan Earthquake reconstruction. This calculator adds it automatically.
- What if I did not file the 退職所得の受給に関する申告書?
- Without that filing, employers withhold a flat 20.42% of the gross allowance (no deduction, no 1/2 rule). This tool assumes the filing has been submitted, so the actual withholding may differ.
- Is my input uploaded?
- No. The calculation runs entirely in your browser — your allowance, tenure and any disability flag never leave the device.
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