Retirement Bonus Tax Calculator

Enter the retirement bonus amount and years of service. Check the executive box if applicable. Retirement income deduction, taxable retirement income, income tax, resident tax, and take-home amount are calculated automatically.

Retirement income deduction for 20 years or less: "400,000 yen x years of service (minimum 800,000 yen)"; over 20 years: "8 million yen + 700,000 yen x (years - 20)". Taxable retirement income is "(retirement bonus - deduction) / 2" (the 1/2 rule does not apply to executives with 5 or fewer years of service). Income tax applies progressive rates plus the reconstruction special income tax (2.1%). Resident tax is 10% of taxable retirement income.