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🇭🇰 Hong Kong vs 🇯🇵 Japan: 2026 take-home pay
At $120,000 gross (single filer, 2026 model), estimated net is about $102,000 for Hong Kong versus $88,000 for Japan. Hong Kong vs Japan at $120k: HK typically wins on headline net for tax residents
2026 tax data · Last reviewed: April 1, 2026 · Source: methodology
TL;DR — Key Takeaways
- →At $120,000: Hong Kong ≈ $102,000 net vs. Japan ≈ $88,000.
- →Japan residence tax + social insurance stack on top of national income tax.
- →HK 15% cap vs progressive SG/JP interplay matters more above $200k equivalent.
Net Pay at $120,000 Salary (2026)
| Country | Estimated net (USD) |
|---|---|
| 🇭🇰 Hong Kong | $102,000 |
| 🇯🇵 Japan | $88,000 |
🇭🇰
Hong Kong
$102,000
estimated net take-home
Top rate: 17%
🇯🇵
Japan
$88,000
estimated net take-home
Top rate: 45%
Annual delta at $120,000
🇭🇰 Hong Kong saves $14,000/year
Over 10 years at 7% compounding: $206,920 more
Key Tax Differences
| Factor | 🇭🇰 Hong Kong | 🇯🇵 Japan |
|---|---|---|
| Top income tax rate | 17% | 45% |
| Effective rate at $100k | 12% | 28% |
| Taxation basis | Territorial | Worldwide |
| Special regimes | None | None |
🇭🇰 Hong Kong — Key Tax Facts
- →Salaries tax: 2%–17% progressive (standard tax); or flat 15% on net income if lower.
- →Territorial taxation: only Hong Kong-source income is taxed.
- →MPF (pension): 5% employee + 5% employer, capped at HKD 1,500/month each.
- →No capital gains tax, no GST/VAT, no inheritance tax.
- →Effective rate at HKD 1M (≈ USD 128k) income: approximately 12–14%.
- →Basic and additional allowances reduce taxable income significantly for residents.
🇯🇵 Japan — Key Tax Facts
- →National income tax: 5%–45% progressive; local (residence) tax adds approximately 10% flat.
- →Combined top marginal rate: ~55% (national + local).
- →Employee social insurance: ~15% of salary (pension, health, employment).
- →Non-permanent residents (first 5 years): only Japan-source income taxed; foreign income taxed only if remitted to Japan.
- →Japan has no territorial exemption for permanent residents — worldwide income taxed.
- →High cost of living in Tokyo; significantly lower in regional cities.
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Estimates assume a single filer with no dependents and no treaty benefits. Not tax advice. See methodology.