Money basics in Japan
How everyday money works here: banks, cash culture, My Number, and the bills you cannot ignore.
- Set up the accounts and cards you need in your first months
- Recognise the taxes and insurance that come out of your income
- Know which official documents matter and why
- 1
Bank accounts and a cash-first culture
Lesson 1 · 6 minJapan still runs on cash and bank transfers (振込・furikomi) far more than many countries. A Japanese bank account (口座・kōza) is the hub for your salary, rent, utilities, and card payments.
Megabanks have branches everywhere, while online banks and English-friendly banks are usually the easiest first account for a newcomer. You will need your residence card, and often a personal seal (印鑑・inkan) — though many online banks now accept a signature.
Automatic bill payment by direct debit (口座振替) and salary deposit (給与振込) are normal. Setting these up early prevents missed payments and late fees.
Key takeaways- A bank account is the hub for salary, rent, and bills
- Bring your residence card; a seal may still be requested
- Set up direct debit early to avoid missed payments
Quick self-check: What is the fastest kind of bank to open as a newcomer?
Online or English-friendly banks are usually the easiest first account, though a megabank can be useful for cash and branch access.
- 2
My Number and the documents that matter
Lesson 2 · 5 minYour My Number (マイナンバー) is a 12-digit ID used for tax, social insurance, and some financial accounts. Banks and brokerages will ask for it. Keep the card or notification safe and private.
Two other documents recur constantly: your residence card (在留カード), which proves your status and address, and proof of income (源泉徴収票 — the year-end withholding slip from your employer).
When you move, update your address at city hall and on your residence card within 14 days. A current address is required for banking, insurance, and tax.
Key takeaways- My Number is required for tax and financial accounts
- Keep your residence card address current within 14 days
- The 源泉徴収票 is your official proof of income
- 3
What comes out of your income
Lesson 3 · 6 minIf you are employed, your payslip shows deductions before you ever see the money: income tax (所得税), resident tax (住民税), health insurance (健康保険), and pension (厚生年金). Together these can be roughly 15–30% depending on income.
Resident tax is billed based on last year’s income, so it can surprise you in your second year — and it can still arrive after you leave Japan. Budget for it.
Employees usually have taxes settled automatically through the year-end adjustment (年末調整), so many never file a return. You may still file to claim extra deductions.
Key takeaways- Deductions can be roughly 15–30% of income
- Resident tax lags a year and can bill after you leave
- Year-end adjustment settles most employees’ taxes