Resident Tax When Changing Jobs in Japan: What Happens (2026)
When you change jobs in Japan, the resident tax that your old employer was deducting from your salary does not disappear. Depending on the month you leave, it is either collected in one lump sum from your last pay, moved to your new employer's payroll, or sent to you as payment slips to pay yourself. Many people are surprised by a large bill a few months after leaving a job. Planning ahead avoids this.
Resident tax (juminzei) is a local tax based on your income in the previous calendar year. You pay it to the municipality where you lived on 1 January. Because of this one-year delay, you still owe resident tax for last year's income even after you change jobs, move city or stop working.
This guide explains the rules by month of leaving, what to do during a gap between jobs, what happens if you move or leave Japan, and how unpaid resident tax can affect your visa. It is based on official information from the Ministry of Internal Affairs and Communications (MIC) and municipal guidance, as of October 2026.
Key takeaways
Resident tax is based on last year's income and charged by the city where you lived on 1 January.
Employees usually pay it in 12 monthly deductions from June to the following May.
Leave between June and December: you can switch to paying yourself, ask for a lump sum from your last pay, or continue through your new employer.
Leave between January and May: the remaining amount is usually taken in a lump sum from your last pay.
Leaving Japan with tax unpaid: appoint a tax agent in Japan and notify your city office before you go.
How does resident tax work for employees?
For employees, resident tax is normally deducted from salary by the employer in 12 monthly payments from June to the following May. This is called special collection (tokubetsu choshu). Each year by 31 May, employees receive a notice from their employer showing the resident tax amount for the coming year.
Item | Rule |
|---|---|
Based on | Your income from 1 January to 31 December of the previous year |
Charged by | The municipality where you had your address on 1 January |
Standard income levy | 10% of taxable income (6% municipal + 4% prefectural; 8% + 2% in designated cities) |
Fixed amounts | ¥4,000 per-capita levy plus ¥1,000 forest environment tax (some municipalities differ) |
Employee payment method | Special collection: 12 deductions from June to the following May |
Self-payment method | Ordinary collection (futsu choshu): payment slips, usually 4 instalments |
The MIC leaflet for foreign residents states that you must pay resident tax if you had an address in Japan on 1 January and enough income in the previous year, and that "the same applies if you leave Japan after January 2." See the MIC resident tax page in English.
Why your first year is different
If you started working in Japan this year, you usually pay no resident tax until June of next year, because there was no Japanese income last year. This is why many people see their take-home pay drop in their second June. See take-home pay in Japan explained.
What happens to resident tax when you leave a job?
What happens depends on the month you leave. The fiscal year for resident tax runs from June to May, so leaving early in that year leaves more tax unpaid than leaving late.
Month you leave | What normally happens to the remaining tax |
|---|---|
June to December | You choose. If you do nothing, it switches to ordinary collection and the city sends you payment slips. You can instead ask your employer to take the rest as a lump sum from your last pay or retirement allowance. If your new job starts without a gap, the remaining tax can continue through your new employer's payroll. |
January to May | The remaining amount is usually taken as a lump sum from your last pay or retirement allowance, even if you do not ask. |
The official wording
The MIC leaflet says that if you leave between 1 June and 31 December, you need to choose a payment method; if you do not choose lump-sum collection, ordinary collection is applied automatically and you will receive an invoice from the municipality. If you leave between 1 January and 31 May, a lump-sum collection will be automatically charged or special collection will be applied. Municipal guides explain that for leaving between 1 January and 30 April, the employer must collect the remaining tax in a lump sum without your request, unless the remaining amount is larger than the pay due to you by 31 May.
Read the leaflet: MIC, "Don't forget to pay resident tax!"
How do you continue resident tax payments at a new employer?
If there is no gap, or only a short one, your remaining resident tax can be deducted by your new employer. To do this, a form called the notification of change for salary earners (kyuyo shotokusha ido todokesho) is used. Your old employer fills in the first part, and your new employer completes and submits it to the municipality.
Steps
Tell your old employer that you want special collection to continue at your new job.
Your old employer fills in its part of the form and passes it to you or your new employer.
Your new employer submits the form to the municipality that charges your resident tax.
Deductions start at the new employer, usually from a month or two after the form is processed.
Municipal guidance notes that payment instalments whose due dates have already passed cannot be moved to special collection. If there is a delay, you may need to pay one or more instalments yourself.
What should you do if there is a gap between jobs?
During a gap between jobs, you usually pay resident tax yourself with payment slips from the city, and you must also handle health insurance and pension. A gap is the time when people most often miss payments.
Item | What to do during a gap |
|---|---|
Resident tax | Pay the slips sent by the city (ordinary collection), usually in instalments. Budget for them. |
Health insurance | Your company health insurance ends when you leave. Join National Health Insurance at your city office, or use another option you qualify for. |
Pension | Switch to National Pension at your city office or pension office. The Japan Pension Service says the deadline is within 14 days after the day after you left your job. |
Income tax | Keep the withholding slip (gensen choshu-hyo) from your old employer. Give it to your new employer, or use it for a tax return if you are not employed at year-end. |
Status of residence | Engineer/Specialist in Humanities/International Services holders must notify ISA within 14 days when a contract ends and when a new one starts. |
Watch the gap length
For work-based statuses, staying in Japan for 3 months or more without doing the activity of your status can be grounds for cancellation of your status, unless you have a justifiable reason. Plan job changes so the gap is short. Read how to change jobs in Japan as a foreigner and notifying immigration within 14 days.
What if you move to another city when you change jobs?
You keep paying the current year's resident tax to the city where you lived on 1 January, even if you move. Your new city will charge you from the next fiscal year, based on where you live on the next 1 January.
Date | Where you live | Who charges resident tax |
|---|---|---|
1 January 2026 | City A | City A charges tax for June 2026 – May 2027 (on 2025 income) |
You move in July 2026 | City B | Still City A for the rest of this fiscal year |
1 January 2027 | City B | City B charges tax for June 2027 – May 2028 (on 2026 income) |
Remember to file a moving-out notification at your old city and a moving-in notification at your new city when you move. Your employer uses your address on 1 January for its payroll report.
What happens to resident tax if you leave Japan?
If you leave Japan with resident tax still unpaid, you must either pay it before leaving or appoint a tax agent (nozei kanrinin) who lives in Japan and notify your city office. The MIC leaflet says a taxpayer who plans to leave Japan must appoint a resident in Japan as tax agent and notify the municipality if unable to pay the resident tax before leaving.
Options before departure
Lump sum from your last pay: ask your employer to deduct the remaining tax from your final salary or retirement allowance.
Pay the slips early: if you are on ordinary collection, ask the city office whether you can pay the full year's amount before leaving.
Appoint a tax agent: a friend, colleague or professional living in Japan who receives notices and pays for you. Rules on who can be a tax agent vary by municipality.
If you lived in Japan on 1 January, you owe resident tax for that fiscal year even if you leave in February. Plan this together with your pension lump-sum withdrawal, which also uses a tax agent. See pension lump-sum withdrawal in Japan.
Can unpaid resident tax affect your visa?
Yes, it can. The MIC leaflet for foreign residents warns that if resident tax payment is delinquent, the taxpayer may not be able to renew their status of residence. Some immigration applications also ask for resident tax certificates.
Practical habits
Keep every payment receipt or bank record.
Check your payslip each June for the new resident tax amount.
If you cannot pay, contact your city office early. Many offices can discuss instalment plans.
Keep your address registration up to date so notices reach you.
A worked timeline: leaving in September, starting in November
Month | Resident tax | Other actions |
|---|---|---|
September (last month) | Old employer deducts September as usual. You decide: lump sum from last pay, or ordinary collection. | Ask for your withholding slip. Notify ISA within 14 days after the contract ends. |
October (gap) | If ordinary collection: city sends payment slips for the remaining months. | Join National Health Insurance and National Pension at your city office. |
November (new job) | You may ask your new employer to take over special collection; pay any instalments already due yourself. | Notify ISA within 14 days of the new contract. Give the withholding slip to your new employer. |
December | Year-end adjustment at the new employer includes your earlier income. | Check your December payslip. |
This is an example only. Actual dates depend on your city and employer.
How AGG can help
AGG (Awaji Global Gateway, a division of Fukuyoshi Inc.) lists English-OK engineering jobs in Japan. When you join one of our dispatch roles, you are employed by Fukuyoshi Inc. and payroll handles resident tax deductions and social insurance. We discuss start dates with you to keep gaps short, and we support visa paperwork. There are no agency fees for job seekers.
Frequently asked questions
Q. What happens to my resident tax when I quit my job in Japan?
It depends on the month. If you leave between June and December, the remaining tax switches to ordinary collection (you pay slips from the city) unless you ask for a lump sum from your last pay, or your new employer takes over deductions. If you leave between January and May, the remaining amount is usually taken as a lump sum from your last pay. You still owe the tax because it is based on last year's income.
Q. Why did I get a big resident tax bill after changing jobs?
Resident tax is based on your income in the previous year. When you leave a job, the months still unpaid in the June-to-May cycle become your own responsibility, often as payment slips covering several months at once. This can feel like a large bill. To avoid surprises, ask for a lump sum from your last pay or ask your new employer to continue the monthly deductions.
Q. Can my new employer deduct my resident tax in Japan?
Usually yes. Your old employer fills in part of a "notification of change for salary earners," and your new employer submits it to the municipality. Deductions then continue at the new company. Instalments that are already past their due date cannot be moved, so you may need to pay one or more slips yourself if the transfer takes time. Tell both employers early that you want this.
Q. Do I have to pay resident tax if I leave Japan?
Yes, if you had an address in Japan on 1 January and enough income in the previous year. The tax applies even if you leave after 2 January. Before leaving, pay the remaining amount (for example, as a lump sum from your last salary) or appoint a tax agent who lives in Japan and notify your city office. Rules on who can be a tax agent vary by municipality.
Q. Which city do I pay resident tax to if I move?
You pay to the municipality where you had your address on 1 January. If you move later in the year, you keep paying that city for the current fiscal year (June to May). Your new city charges you from the next fiscal year, based on your address on the next 1 January. File moving-out and moving-in notifications so that notices reach your new address.
Q. Can unpaid resident tax affect my visa renewal in Japan?
Yes. The Ministry of Internal Affairs and Communications warns that if resident tax is delinquent, you may not be able to renew your status of residence. Some immigration applications also ask for resident tax certificates. Pay on time, keep receipts, and contact your city office early if you have trouble paying. Many offices can discuss payment plans. Keeping your address registration up to date also helps, so that notices reach you.
Q. Do I pay resident tax in my first year in Japan?
Usually not. Resident tax is based on the previous calendar year's income. If you arrived in Japan this year and had no Japanese income last year, you normally have no resident tax until June of next year. After that, it is deducted monthly from June to the following May. Your take-home pay drops at that point, so plan your budget for it.
Summary
Resident tax follows last year's income and your 1 January address, not your current job.
Leave June–December: choose ordinary collection, a lump sum, or transfer to your new employer.
Leave January–May: the remainder is usually taken as a lump sum from your last pay.
During a gap, pay the city's slips and switch health insurance and pension promptly.
Leaving Japan: pay first or appoint a tax agent; unpaid tax can affect visa renewal.
Thinking about your next role? See our open engineering jobs and apply — we help plan start dates to keep gaps short, and there are no agency fees.
Reviewed by
Naoya Mitani — Head of Business Operations, Awaji Global Gateway (Fukuyoshi Inc.). Supports foreign engineers moving into jobs in Japan, including visa changes and onboarding.
