# Salary! Tax! Rent!



## Raffish_Chapish

Hi again all,

I have been having trouble working out how much I will get Net after taxes on a gross salary of Y500,000 a month in Tokyo - I'm single male in my thirties...

I don't suppose anyone can help me here?

So how much should I be looking to spend on rent do you think?

I completely forgot about taxes.... hwell:

Thanks again for any help..

RC


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## larabell

Many years ago I found an excellent illustrated guide to calculating Japanese income/resident's tax but I can't find the link. I did find How To Calculate Income Tax, Japan - Tax which hits all the main points. The computation isn't hard but it involves a number of factors. You essentially subtract some percentage of your gross (based on a table), then subtract social insurance, life insurance, and a fixed fee of 380,000 per dependent (just you, in your situation). Then you look the result up in a table to find your tax. When it gets closer to the end of the year, Google "2014 Income Tax Guide" and you should find this year's instructions, in English, from the National Tax Agency (nta.go.jp). Previous years are also online. The guide is pretty extensive... but there are simplified calculators online that will give you a pretty close ballpark.

The resident's tax is based on the previous year's national income tax. You won't have to worry about that for your first year working in Japan.

Rent depends on how much space you want and where. The further you go from the city, the less you'll end up paying. You could pay half your salary for a 1DK (one bedroom plus dining/kitchen) if you decide to live in Roppongi. Or you could commute maybe 20~30 minutes outside the Yamanote loop and pay 60,000 for a one room with kitchenette. A 1DK is probably fine for someone single and just starting out. A quick google search for 1DK places around my area (Nakano-ku) shows they seem to hover around 100,000 plus-or-minus a couple man. If that's still too much, keep in mind that further from the city equals cheaper (mostly -- it doesn't apply to popular places like Kichijoji, for example). Other factors would be the age of the building, how far the nearest train station is, and whether you need to take a bus in addition to the train.

Search for the Metropolis Magazine web site (or the physical magazine, once you get here). They have plenty of ads for places that will give you some idea of what costs how much and where. You don't have to live right smack in the middle of town and, in fact, you probably won't mind being father out in a quieter area once you've been here for a while. Figure out which lines go through wherever you're working and look for places near the stations along those lines.

If you're OK with posting the approximate location of your office (station or area name is good enough) you might get some interesting suggestions as to possible locations to live. There are plenty of interesting neighborhoods not too far from the various city centers that don't cost an arm and a leg. The downside (which could be an advantage, depending on how you look at it) is that the cheaper places will be in all-Japanese neighborhoods where you may end up doing your grocery shopping on a street lined with small family-owned shops where they don't speak English. But... you aren't moving here just to see more of what you can already see back home, right?


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## Raffish_Chapish

Thanks!

I'm working in Roppongi - suggestions very welcome. 

It looks like from doing the maths I'll get circa 385,000 after tax per month.

I found an awesome apartment for 155,000, not including bills so I guess could be looking at 175,000 with bills??

That would leave me with 210,000 per month. Can I live on this? I like to go out for a drink on Friday nights.

RC


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## larabell

From Roppongi I would go West. If you go out the Hibiya/Toyoko line there's a nice little "villiage" called Jiyugaoka. It's not going to be super-cheap but it's cheaper and quieter than Roppongi. If you like action and have the cash, Hiroo is OK and you could walk home from work. But that area is really expensive, IMHO. The Oedo line is usually less crowded (in my estimation... but realize that this is coming from someone who hasn't commuted to work for about seven years now. ) and if you go toward Nerima things should be fairly cheap... but very suburban. Nakano-sakaue is also on the Oedo line and that's a really nice area that's not all that expensive.

Of course, it sounds like you already have a place in mind. The price sounds like something near Roppingi -- which I suppose is OK if you're OK with spending that much money.

Your 210K monthly comes out to 5K per week for everything except rent and taxes. If I go out to dinner and end up drinking a lot, I can spend as much as 10,000 yen in just one place. So you may have to be careful on Friday if you hope to eat again on Monday. But it doesn't sound impossible... just a bit tight. With some care, you can eat for less than 5000 per day, leaving plenty for Friday night. Not much for saving, though.

Also, don't forget things like social insurance, health insurance, etc. Those depend on your salary so I can't say how much you might have to pay there but hopefully it's not too much.


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## Raffish_Chapish

Thanks - I take it you mean 50k per week? I hope so anyway! ;-)

Do you think my bill estimates are accurate?

Thanks for all your help.

RC


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## larabell

Yeah... 50k not 5k... just a typo.

Maybe you're OK with the bills (you allowed 20k/month). My electric bill for a 3-story place with four people inside is almost always 15k all by itself but I have a lot of 24/7 electronics. Your may well be half that. The other stuff (gas, water) pales by comparison... a couple thousand a month probably. I don't know if you're including internet, cable, and cell phone as "bills" but that stuff adds up fast, too. Squeeze a bit and you should be OK... but I haven't been 30 and living alone for quite some time now so I'm kinda treading on thin ice here. It would be nice if someone else on the forum who is in a similar living situation would also comment on the figures.


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## Raffish_Chapish

Thankyou - all this is much appreciated you are very helpful.

I just put a deposit down on a place in Nakai - if that a nice area? *fingers crossed*


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## larabell

I've never been to Nakai myself but, luckily, somebody posted a page full of photos online. Looks like a nice enough place. I see a small shopping street (always a nice touch), two train lines, and a river runs through the area (looks more like a huge drainage ditch but it's got pedestrian walkways running along the side which are good if you like walking/jogging). Speaking of walking, there are a few interesting areas within about one station's distance from Nakai -- feel free to PM me once you're settled in and I can point them out.

When I first looked up Nakai, I was concerned about the commute but one of the two lines that stop in Nakai is the newer Oedo-sen which runs right through Roppongi -- and, IMHO, it's one of the less crowded lines during commute-time. There's only a half-dozen stations further out from Nakai so there may not be as much commute traffic inbound and, once you get past Tochomae (basically Tokyo City Hall) a lot of people will disembark.

Sounds like a nice choice.


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