The average worker in Japan faced a tax burden on labour income (tax wedge) of 31.6% in 2013 compared with the OECD average of 35.9%. Japan was ranked 23 of the 34 OECD member countries in this respect.
Some examples of the results reflected in the Overview charts for Japan are:
- The tax burden for the single average worker increased by 6.9 percentage points from 24.7% to 31.6% between 2000 and 2013. Between 2009 and 2013, there was an increase of 2.4 percentage points.
- The corresponding figures for the OECD were a decrease of 0.8 percentage points from 36.7% to 35.9% between 2000 and 2013 and an increase of 0.8 percentage points between 2009 and 2013.
- The tax burden for the one-earner couple with 2 children at the AW level increased by 5.1 percentage points from 21.0% to 26.1% between 2000 and 2013. Between 2009 and 2013, there was an increase of 2.5 percentage points.
- The corresponding figures for the OECD were a decrease of 1.3 percentage points from 27.7% to 26.4% between 2000 and 2013 and an increase of 1.4 percentage points between 2009 and 2013.
The data used for the average and marginal tax wedges is taken directly from the "Tax Wedge Decomposition' dataset within the online OECD data warehouse: DotStat. The dataset includes the breakdown of the average and marginal tax wedges into five separate components as percentage of total labour cost:
- central income taxes,
- local income taxes,
- employee social security contributions,
- employer social security contributions, and
- family benefits.
You can access the full datasets by using the following links:
Explanations and definitions of the terminology used throughout the publication, or as indicators within figures and charts, can be found within the Methodology (PDF), or within the annex tables: A.1. Terminology, and A.2 Characteristics of taxpayers.