💴 Money, Tax & Insurance
Resident Tax When You Resign or Leave Japan — The "Pay-Later" Trap
A bill arrives even though you're no longer working. The procedures to do before you leave
📖 8 min read📅 2026-09-24
Half a year after returning home, a "demand notice for resident tax" arrived from Japan. "I'm not even in Japan anymore — why?"
Quang (28), from Hanoi in Vietnam, worked in Japan for five years before resigning and returning home in the spring of 2024. He had done his job properly, and taxes had been deducted from his salary every month, so he thought "there are no money problems at all."
But a few months after returning home, through a friend still in Japan, he learned that a "resident tax payment slip" addressed to him — and later a "demand notice" — had arrived. The amount was over a hundred thousand yen. Quang was confused. "I'm not even working in Japan anymore — why is a bill coming now?"
The reason lay in "how resident tax works." Resident tax is charged on the previous year's (January–December) income and is paid the following year on a "pay-later" basis. In other words, even after you resign and leave the country, you are billed for the resident tax for the year you worked. Quang had not settled this before returning home.
Quang hadn't known that resident tax is "paid later" and follows you even after you've gone home. And that if he had taken steps before leaving — such as appointing a "tax representative" — he could have avoided the trouble.
Resident tax when you resign or leave Japan. We've gathered the "pay-later" trap and the procedures you should take, in a Q&A format.
Unlike income tax (withheld from your salary every month and settled within the same year), resident tax is a "pay-later" tax: "you pay it the following year on the previous year's income." If you don't know how this works, you can be shocked by an unexpected bill when you resign or leave Japan. Let's look at it step by step.
❓ Frequently Asked Questions
Q.What is resident tax in the first place? Is it different from income tax?
A.Resident tax is a tax you pay to the municipality and prefecture where you live. Whereas income tax (a national tax) is "paid in the same year on that year's income," resident tax is a "pay-later" system: "paid from June of the following year on the previous year's (January–December) income." It is levied by the municipality where you have your address as of January 1 of that year. Company employees usually have it deducted from their salary every month (special collection).
Q.Why does a bill arrive after I've resigned or left the country?
A.This is the "pay-later" trap. Because resident tax is a tax on the previous year's income, even if you, for example, work in 2024 and resign and leave in 2025, the obligation to pay the resident tax on your 2024 income remains in 2025. "Getting billed for the previous year even though you're not working" is exactly for this reason. When the deduction from your salary stops, the remainder is for you to pay yourself, and if you leave it unpaid, a demand notice arrives and a delinquency charge may be added.
Q.What happens to my resident tax when I resign?
A.Since deduction from your salary (special collection) becomes impossible, the remaining resident tax becomes one of the following: ① Lump-sum collection: the remaining balance is deducted all at once from your final salary or retirement allowance. ② Ordinary collection: you pay it yourself using payment slips. The treatment changes depending on when you resign: if you resign between January and May, in principle the remaining balance is collected in a lump sum. If you resign between June and December, it is collected in a lump sum if you request it, and switches to ordinary collection if you don't. The take-home from your final salary can drop significantly, so be mentally prepared.
Q.[Important] What should I do when I leave Japan?
A.If unpaid resident tax remains when you leave Japan, you need to report a "tax representative" to your municipality before departure. A tax representative is someone who, on your behalf, receives the payment slips and handles the tax-payment procedures. An individual living in Japan (it can be an acquaintance — they don't have to be a relative) or a corporation (such as your employer) can serve in this role. In some cases the company will cooperate. The report is filed at the tax counter of the municipality where you live.
Q.What happens if I leave Japan without appointing a tax representative?
A.Since there is no one to deliver the tax notice to, the municipality proceeds using a method called "service by public notice." If payment is not made by the due date, a demand notice is issued and a delinquency charge may be added. As with Quang, an unexpected bill or demand may follow you after you've returned home. To avoid trouble, it's important to take the procedures before you leave. Note that if you pay the full amount of resident tax before departure, a tax representative may not be necessary in some cases (the treatment varies by municipality, so always check at the counter).
Q.Are there cases where no resident tax applies?
A.Yes. If your previous year's income is below a certain amount, resident tax is exempt (as a rough guide, the exemption threshold for the income-based portion is total income of ¥450,000 or less for the previous year if you have no dependents). However, the exemption threshold varies by municipality. You can check whether you are subject to taxation and how much remains at the tax counter of the municipality where you live. Once you start thinking about resigning or leaving Japan, checking your remaining resident tax balance early will give you peace of mind.
🤝 Where to get help (free, multilingual, anonymous OK)
Tax Counter of Your Municipality
You can consult about checking your remaining resident tax balance, the collection method on resignation, filing a tax representative, and settling up before departure. Some municipalities also have a dedicated consultation desk for foreign residents.
🌐 Multilingual support and interpreters vary by municipality ⏰ Weekdays (varies by municipality)
📝 Contact via web →