Japan Expat Tax Guide 2025
FEIE, Foreign Tax Credits, banking, visa options & filing strategies for US expats in Japan.
How Japan Taxes Work
Japan's tax system: Worldwide income for permanent residents; national + local taxes.
FEIE vs Foreign Tax Credit
FEIE covers US tax. Japan has a US-Japan tax treaty and totalization agreement — avoid double Social Security taxation.
The FEIE allows you to exclude up to $130,000 of foreign earned income from US taxation in 2025.
Social Security & Self-Employment Tax
Japan has a totalization agreement with the US. This prevents double Social Security taxation.
Banking for US Expats
SMBC Prestia and Shinsei Bank are expat-friendly. Japan Post Bank also accepts foreigners.
Visa Options
Business Manager visa, Highly Skilled Professional visa, or Specified Skilled Worker visa.
Cost of Living
Moderate to high — $2,500–$4,000/month in Tokyo, less outside major cities.
Frequently Asked Questions
Do US expats in Japan need to file US taxes?
Yes. US citizens must file regardless of where they live. The FEIE can exclude up to $130,000.
Should I use FEIE or FTC?
FEIE covers US tax. Japan has a US-Japan tax treaty and totalization agreement — avoid double Social Security taxation.
What is the cost of living?
Moderate to high — $2,500–$4,000/month in Tokyo, less outside major cities.
Compare FEIE vs FTC vs Combined strategies for Japan.
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