Banking, pensions and tax in Japan
Japan taxes pensions from abroad like its own public pensions, at 5% to 45% plus 10% local tax, but foreign income is taxed only when remitted for the first 5 years.
How your pension reaches a Japan bank, what Japan taxes, and what you still report at home. Checked against official sources on Oct 8, 2026.
- Tax on a foreign pension
- 5% to 45% Foreign pensions are taxed. National Tax Agency; PwC Tax Summaries. Checked Oct 8, 2026.
- Top rate, local income
- 45% JPY 40,000,000 and over. National Tax Agency; PwC Tax Summaries. Checked Oct 8, 2026.
- US Social Security
- Direct deposit SSA POMS. Checked Oct 8, 2026.
- UK State Pension
- Frozen GOV.UK. Checked Oct 8, 2026.
- Canada OAS
- Agreement in force Canada.ca. Checked Oct 8, 2026.
- US FBAR
- Over $10,000 Combined foreign accounts at any time in the year. FinCEN. Checked Oct 7, 2026.
Getting your pension paid in Japan
United States
Social Security
Yes. Social Security can be paid straight into a bank in Japan by international direct deposit: Japan is on SSA's list of direct deposit countries, for yen accounts.
SSA POMS. Checked Oct 8, 2026.
United Kingdom
State Pension
It can be paid to you in Japan, but Japan is not on GOV.UK's list of countries where the State Pension goes up every year, so it stays at the rate you first receive there.
GOV.UK. Checked Oct 8, 2026.
Canada
Old Age Security
Paid while you live outside Canada if you lived in Canada for at least 20 years after age 18. Canada and Japan have had a social security agreement since 1 March 2008: if you fall short, Canada counts periods of insurance in Japan's pension programme after age 18 as residence in Canada.
Canada.ca. Checked Oct 8, 2026.
Other countries: check whether your pension can be paid abroad, whether it keeps rising with inflation there, and whether your country has a social security agreement with Japan.
How Japan taxes you
You are a Japanese tax resident if you have your domicile (the centre of your life) in Japan or have lived there continuously for one year or more. Residents are taxed on worldwide income, with one exception: a non-permanent resident, a foreign national who has lived in Japan for 5 years or less in the past 10, is taxed on Japanese income plus foreign income paid in Japan or remitted to Japan. A pension from a foreign social insurance scheme counts as a public pension, taxed as miscellaneous income after the public pension deduction. National income tax runs from 5% to 45%, plus a 2.1% reconstruction surtax on the tax, and a local inhabitant tax of 10% is added. The income tax scale:
| Taxable income | Rate |
|---|---|
| Up to JPY 1,949,000 | 5% |
| JPY 1,950,000 to 3,299,000 | 10% |
| JPY 3,300,000 to 6,949,000 | 20% |
| JPY 6,950,000 to 8,999,000 | 23% |
| JPY 9,000,000 to 17,999,000 | 33% |
| JPY 18,000,000 to 39,999,000 | 40% |
| JPY 40,000,000 and over | 45% |
National Tax Agency; PwC Tax Summaries. Checked Oct 8, 2026.
What US citizens still report
US citizens file a US return on worldwide income wherever they live; the US has an income tax treaty with Japan, which can decide which country taxes some income. Two reports cover money held abroad:
| FBAR (FinCEN Form 114) | Over $10,000 combined, any time |
| Form 8938, single, living abroad | Over $200,000 at year end or $300,000 any time |
| Form 8938, married filing jointly | Over $400,000 at year end or $600,000 any time |
FinCEN; IRS. Checked Oct 7, 2026.
Pension and tax questions
Can I get US Social Security paid in Japan?
Yes. Social Security can be paid straight into a bank in Japan by international direct deposit: Japan is on SSA's list of direct deposit countries, for yen accounts.
Will my UK State Pension go up each year in Japan?
It can be paid to you in Japan, but Japan is not on GOV.UK's list of countries where the State Pension goes up every year, so it stays at the rate you first receive there.
Is my pension taxed in Japan?
Yes. A pension from a foreign social insurance scheme is taxed as a public pension, after the public pension deduction, at the national rates of 5% to 45% plus 10% local tax. In your first 5 years as a non-permanent resident, foreign income is taxed only if it is paid in Japan or remitted there. US citizens still file a US return.
Do I still file a US tax return?
Yes, US citizens file on worldwide income wherever they live, and report foreign accounts on an FBAR once they pass $10,000 combined at any point in the year.
Can I get US Social Security paid in Japan?
Yes. Japan is on Social Security's list of international direct deposit countries, for payments into yen accounts.
Is my foreign pension taxed in Japan?
Yes, for tax residents. A pension from a foreign social insurance scheme is taxed like a Japanese public pension, after the public pension deduction. Non-permanent residents, in their first 5 years, pay tax on foreign income only when it is paid in or remitted to Japan.
Does the UK State Pension go up in Japan?
No. Japan is not on GOV.UK's list of countries where the State Pension rises every year, so it stays at the rate you first receive there.
