Quote:
Originally Posted by sarasi
The resident's tax is based on how much you earn, although there are slight variations between areas. Not everyone in Sangetsu's area will be paying $1,200, and not everyone is his girlfriend's area will be paying $7,000. It's a percentage of your income- where I live, close to 8%.
I disagree that most foreigners living in Japan are unaware of the resident's tax. Many of those who arrived in the last year, perhaps. The rest of us are very aware of it, since we have to pay it every year.
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Those foreigners who stay one year or less are exempt from residency tax, and most foreigners do, in fact, stay 1 year or less.
The percentage you pay is not entirely based upon your income, but relies also on your geographic location. The rates are often higher in the countryside than they are in the city in order to compensate for having a smaller tax base.