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Tokyo Market Data

Explore compensation benchmarks, tax liabilities, and cost of living adjustments for professionals in Tokyo.

About Tokyo

The world’s largest metropolitan economy. Salaries are high, though offset by significant social contributions and taxes.

Tokyo represents a primary financial and business hubin Japan, attracting professionals from around the world. The city's strategic location, business-friendly environment, and quality of life make it an attractive destination for career growth and wealth accumulation.

Key Market Indicators

Cost of Living
51

Index score (100 = global average)

Rent Index
67

Housing cost indicator

Median Income
¥8,440,000

Estimated professional median

Tax System in Japan

Japan imposes a progressive national income tax combined with a 10% local inhabitants tax. Social insurance premiums for health and pension are deducted at source.

Example Calculation

For a professional earning ¥8,440,000 annually in Tokyo:

Gross Income
¥8,440,000
Net Income
¥5,593,300
Tax Rate
33.7%
Monthly Take-Home
¥466,108

Popular Salary Benchmarks

Explore compensation data for key roles in Tokyo

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Frequently Asked Questions

What is the cost of living in Tokyo?
Tokyo has a cost of living index of 51 and a rent index of 67, making it a moderately priced city. Housing costs are manageable relative to other major cities.
How does the tax system work in Japan?
Japan imposes a progressive national income tax combined with a 10% local inhabitants tax. Social insurance premiums for health and pension are deducted at source.
What is a good salary in Tokyo?
For professionals in Tokyo, we estimate the median income at approximately ¥8,440,000. A salary above this level provides comfortable living standards, while salaries significantly below may require careful budgeting, especially for housing in prime districts.
What industries are strongest in Tokyo?
Tokyo is a major business hub with strong presence across multiple sectors. The city's status as a financial and technology center attracts professionals from various industries, with particularly strong opportunities in finance, technology, and professional services.