[Sangetsu]

Income tax is low, but, like in western countries, there are lots of invisible taxes which you don't often see.

If you drive a car, then you are going to pay lots of tax, more than 50% the price of gasoline consists of tax, plus there is a tax which is levied on the size of the engine in your car. That tax alone on my car (with it's 6 liter engine) would cost more than $100 per month. This is in addition to the inspection tax which must be paid every 2 years. Adding highway tolls (which is another form of tax) makes owning a car in Japan an expensive venture.

Residency tax is a killer. Most foreigners are unaware of this tax, it doesn't apply to people who live in the country for 1 year or less. In my area it runs about $1200 a year. My girlfriend lives in a high-end Tokyo neighborhood, her residency tax is about $7000 per year.

Sales tax is 5%, but applies to everything. Pension tax is not expensive, far less than what they charge in American for Social Security. I pay about $60 a month into the national pension plan. If I leave after 3 or less years, the money I pay into the pension plan will be refunded to me.