National tax revenue Japan FY 2016-2025

In the fiscal year 2023, a total national tax revenue of around 77.4 trillion Japanese yen was reported in Japan. The main sources of national tax revenue were consumption tax, income tax, and corporation tax.

Taxes and other government revenue

Taxes are the main source of income for the government. They are collected to finance public services, infrastructure, and other government spending. Taxes accounted for around 62 percent of the government’s general account revenue. However, expenditure has exceeded the revenue from tax and other income sources for the past decades. To make up for fiscal deficits, government expenditure is partly financed by debt, such as special deficit-financing bonds and construction bonds.

Local governments

Taxes in Japan are levied by the central government and local governments. On the local level, taxes are collected on both, the prefectural and municipal level. Total tax revenue in Japan amounted to 122 trillion yen in fiscal 2023. The national tax revenue share in this was roughly 63 percent in the fiscal year 2022. At the same time, local government expenditure made up 56 percent of the total government expenditure in Japan. This is why a part of the national tax revenue is allocated to local governments, in the form of local allocation taxes, local transfer taxes, and special grants to local governments.