Inagi City

Municipal and metropolitan taxes on retirement income

Last updated: January 4, 2022

 Personal municipal tax and metropolitan inhabitant tax related to retirement income, like income tax, are calculated separately from other income by the payer of retirement allowances, etc., and are specially collected at the time of payment of retirement allowances, etc. I am.

taxpayer

 Those who have an address in Inagi City as of January 1st of the year in which they should receive payment of retirement allowance, etc. (usually the date of retirement)

How to calculate municipal tax and metropolitan tax on retirement income

Calculating taxable retirement income

 (1) (Retirement allowance - Retirement income deduction) x 1/2 = Taxable retirement income (rounded down to the nearest thousand yen)
For employees who have been employed for five years or less and are not executives, etc., formula (2) is used.
(2) Retirement allowance - Retirement income deduction = A (3 million yen if over 3 million yen)
A x 1/2 + (Retirement allowance - Retirement income deduction - 3 million yen) (B) = Taxable retirement income (rounded down to the nearest 1,000 yen)
If (B) is less than 0 yen, (B) = 0 yen.

Calculation of retirement income deduction

 If your years of service are 20 years or less, calculate your amount as follows: 400,000 yen x years of service (800,000 yen if it is less than 800,000 yen)
If you have worked for more than 20 years, calculate the amount as follows: 8 million yen + 700,000 yen x (years of work - 20 years)

Calculation of municipal tax special collection tax amount

 Taxable retirement income amount x 6% = Municipal tax special collection tax amount (rounded down to the nearest 100 yen)

Calculation of special collection amount of Metropolitan inhabitant tax

 Taxable retirement income amount × 4% = special metropolitan resident tax amount (rounded down to the nearest 100 yen)
The amount to be paid is the sum of the special municipal tax levy and the special metropolitan municipal tax levy.

Example of calculation of municipal tax and metropolitan 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

 With over 20 years of service,
The retirement income deduction is 8 million yen + 700,000 yen x (29 years - 20 years) = 14,300,000 yen.

Calculating taxable retirement income

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

Calculation of municipal tax and metropolitan tax on retirement income

 Calculation of special municipal tax collection amount: 2,627,000 yen x 6% = 157,620 yen Rounded down to the nearest 100 yen, it will be 157,600 yen.
Calculation of special collection tax amount of Tokyo inhabitant tax 2,627,000 yen x 4% = 105,080 yen Rounded down to the nearest 100 yen, it becomes 105,000 yen.

Payment amount

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

Retirement tax on specified officer retirement allowance, etc. (for officers, etc. with 5 years or less of service)

Retirement allowance - Retirement income deduction = Taxable retirement income

What is an officer?

(1) Directors, executive officers, accounting advisors, auditors, directors, auditors, and liquidators of a corporation, and persons other than these who are engaged in the management of a corporation and are specified by government ordinance (2) Members of the Diet and local governments Members of parliaments of public organizations (3) National civil servants and local civil servants

Inquiries about this page

Inagi City Citizens Department Taxation Division Phone: 042-378-2111