Municipal Resident Tax and Tokyo Metropolitan Resident Tax on Retirement Income

The Municipal Resident Tax and Tokyo Metropolitan Resident Tax related to retirement income are calculated separately from other income by the payer of retirement benefits, similar to Income Tax, and are to be withheld at the time of payment of retirement benefits.

Taxpayer

Those who have an address in Inagi City as of January 1 of the year to which the date of payment of retirement allowances, etc. (usually the retirement date) belongs.

Calculation Method for Municipal Resident Tax and Tokyo Metropolitan Resident Tax on Retirement Income

Calculation of Taxable Retirement Income

(1) (Retirement Allowance - Retirement Income Deduction) × 1/2 = Taxable Retirement Income (rounded down to the nearest thousand yen)

Employees other than executives with less than 5 years of service will be calculated using formula (2).

(2) Retirement Allowance - Retirement Income Deduction = A (300,0000 yen if over 3 million yen)

A×1/2 + (Retirement Allowance - Retirement Income Deduction - 3 million yen) (B) = Taxable Retirement Income (rounded down to the nearest thousand yen)
If (B) is 0 yen or less, then (B) = 0 yen.

Calculation of Retirement Income Deduction

How to calculate when the years of service are 20 years or less

400,000 yen × years of service (if less than 800,000 yen, then 800,000 yen)

How to calculate when the years of service exceed 20 years

8 million yen + 700,000 yen × (years of service - 20 years)

Calculation of Municipal Resident Tax Special Collection Amount

Taxable retirement income amount × 6% = Municipal Resident Tax special collection amount (rounded down to the nearest hundred yen)

Calculation of Tokyo Metropolitan Resident Tax Special Collection Amount

Taxable retirement income amount × 4% = Tokyo Metropolitan Resident Tax special collection amount (rounded down to the nearest hundred yen)
The payment amount is the total of the Municipal Resident Tax special collection amount and the Tokyo Metropolitan Resident Tax special collection amount.

Example of Calculation for Municipal Resident Tax and Tokyo Metropolitan Resident Tax on Retirement Income

The calculation example is based on the following conditions.
Years of service: 29 years
Retirement allowance: 19,555,000 yen

Calculation of Retirement Income Deduction

Since the years of service exceed 20 years,
the retirement income deduction will be 8 million yen + 700,000 yen × (29 years - 20 years) = 14,300,000 yen.

Calculation of Taxable Retirement Income

(19,555,000 yen - 14,300,000 yen) × 1/2 = 2,627,500 yen
Rounded down to the nearest thousand, it will be 2,627,000 yen.

Calculation of Municipal Resident Tax and Tokyo Metropolitan Resident Tax on Retirement Income

Calculation of Municipal Resident Tax Special Collection Amount

2,627,000 yen × 6% = 157,620 yen
Rounded down to the nearest hundred yen, it will be 157,600 yen.

Calculation of Tokyo Metropolitan Resident Tax Special Collection Amount

2,627,000 yen × 4% = 105,080 yen
Rounded down to the nearest hundred, it will be 105,000 yen.

Payment Amount

157,600 yen + 105,000 yen = 262,600 yen.

Retirement taxation for specific executive retirement allowances, etc. (executives with less than 5 years of service)

Retirement Allowance - Retirement Income Deduction = Taxable Retirement Income

What is an officer, etc.

1. Directors, executive officers, accounting advisors, auditors, board members, supervisors, and liquidators of a corporation, as well as those engaged in the management of the corporation as specified by government ordinance.
2. Members of the National Diet and members of local government assemblies
3. National and Local Public Servants