Taxes for US citizens living in Japan
Dual filing, worldwide income, credits, exclusions, treaties, accounts, and investments.
The US taxes its citizens and green-card holders on worldwide income even while they live in Japan, so you generally file in both countries; the foreign tax credit and foreign earned income exclusion reduce double taxation, and Japanese accounts and funds can trigger extra US reporting.
Effective: 2026-01-01 to 2026-12-31
Professional review pending — treat as draft and confirm with the authorities.
Key points
- US citizenship-based taxation means filing in both countries.
- Paying Japanese tax does not remove US filing.
- The FTC and FEIE reduce double tax but must be claimed on a US return.
- Japanese accounts and funds can trigger FBAR, FATCA, and PFIC issues.
Dual filing reality
Japan taxes you as a resident, but the US continues to tax its citizens and green-card holders on worldwide income wherever they live. So you generally file a Japanese return and a US return each year. The foreign tax credit and the foreign earned income exclusion can reduce or remove US tax on income already taxed in Japan, but they do not remove the filing obligation and do not always produce the same result.
Accounts, funds, and help
Japanese bank accounts, NISA holdings, mutual funds, pensions, and insurance can create complex US classifications — FBAR and FATCA reporting, and possible PFIC treatment of Japanese funds — that ordinary Japanese tax software does not handle. Use a Japan-licensed tax accountant together with a US CPA, enrolled agent, or attorney experienced in Japan-US cases.
Who this is for
- US citizens and green-card holders in Japan
- Americans planning a move
What this is not
- Non-US taxpayers
- Specific US return preparation
- Japanese tax software does not handle US obligations; coordinate a Japan zeirishi with a US professional.
Frequently asked questions
How does tax residency work in Japan?
For tax, Japan classifies you as non-resident, non-permanent resident, or permanent resident — separate from your immigration status. Broadly: non-residents are taxed only on Japan-source income; non-permanent residents (in Japan under 5 of the last 10 years, without permanent intent) are taxed on Japan-source income plus foreign income paid in or remitted to Japan; permanent residents (for tax) are taxed on worldwide income. This affects foreign income and investments, so confirm your category with the NTA or a tax accountant.