Sole Proprietor vs Salaryman Simulator
Compare taxes, insurance, and take-home pay between employment and freelancing (Kojin Jigyo) in Japan.
About this tool
This simulator compares the financial outcomes of being a regular employee (Salaryman) versus a Sole Proprietor (Kojin Jigyo).
- Salaryman: Employer pays 50% of Health Insurance and Pension (Shakai Hoken). Taxes are deducted automatically.
- Sole Proprietor: You pay 100% of National Health Insurance (Kokumin Kenko Hoken) and National Pension (Kokumin Nenkin). You can deduct expenses and use the Blue Tax Return deduction (up to ¥650,000) to lower your taxable income.
- Business Tax: Sole proprietors earning over ¥2.9M in profit typically pay an additional 5% Personal Business Tax.