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India vs Japan: tax rates compared
Japan's income tax rate is 25.9pp higher than India's (55.9% vs 30%). The 200-country average is 28%: both sit above it. India's figure is dated 2026-05-12 and Japan's 2025-01-01, so the two rates come from different data vintages.
Verified data covers six of the six tracked tax types for both countries; every rate below is cited to its source and dated.
At a glance
| Tax | IN | JP | Difference |
|---|---|---|---|
| Income Tax | 30% | 55.9% | JP +25.9 pplargest gap |
| Corporate Tax | 30% | 29.7% | IN +0.3 pp |
| VAT | 18% | 10% | IN +8 pp |
| Capital Gains Tax | 12.5% | 20.3% | JP +7.8 pp |
| Crypto Tax | 30% | 55% | JP +25 pp |
| Wealth Tax | 0% | 0% | match |
Income Tax
| Country | Rate | Source |
|---|---|---|
| India | 30% | Source: PWC Worldwide Tax Summaries — India (Individual, Taxes on personal income) · as of 2026-05-12 |
| Japan | 55.9% | Source: OECD Tax Database — Top statutory personal income tax rates · as of 2025-01-01 |
| Difference | −25.9 pp | Japan higher |
Corporate Tax
| Country | Rate | Source |
|---|---|---|
| India | 30% | Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01 |
| Japan | 29.7% | Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01 |
| Difference | +0.3 pp | India higher |
India's corporate tax rate is 0.3pp higher than Japan's (30% vs 29.7%). The 201-country average is 22.6%: both sit above it.
VAT
| Country | Rate | Source |
|---|---|---|
| India | 18% | Source: PWC Worldwide Tax Summaries — India (Corporate, Other taxes) · as of 2026-05-11 |
| Japan | 10% | Source: PWC Worldwide Tax Summaries — Japan (Corporate, Other taxes) · as of 2026-01-13 |
| Difference | +8 pp | India higher |
India's VAT rate is 8pp higher than Japan's (18% vs 10%). The 181-country average is 15%: India sits above it, Japan sits below it.
Capital Gains Tax
| Country | Rate | Source |
|---|---|---|
| India | 12.5% | Source: PWC Worldwide Tax Summaries — India (Individual, Other taxes) · as of 2024-07-23 |
| Japan | 20.3% | Source: PWC Worldwide Tax Summaries — Japan (Individual, Income determination) · as of 2026-01-13 |
| Difference | −7.8 pp | Japan higher |
Japan's capital gains tax rate is 7.8pp higher than India's (20.3% vs 12.5%). The 175-country average is 10.3%: both sit above it. India's figure is dated 2024-07-23 and Japan's 2026-01-13, so the two rates come from different data vintages.
Crypto Tax
| Country | Rate | Source |
|---|---|---|
| India | 30% | Source: Ministry of Finance, Government of India — Memorandum Explaining the Provisions in the Finance Bill 2022 · as of 2023-04-01 |
| Japan | 55% | Source: PWC Japan — Japan Tax Update: Overview of 2026 Tax Reform Proposals (December 2025) · as of 2025-12-19 |
| Difference | −25 pp | Japan higher |
Japan's crypto tax rate is 25pp higher than India's (55% vs 30%). The 88-country average is 13%: both sit above it. India's figure is dated 2023-04-01 and Japan's 2025-12-19, so the two rates come from different data vintages.
Wealth Tax
| Country | Rate | Source |
|---|---|---|
| India | 0% | Source: PWC Worldwide Tax Summaries — India (Individual, Other taxes) · as of 2026-05-12 |
| Japan | 0% | Source: PWC Worldwide Tax Summaries — Japan (Individual, Other taxes) · as of 2026-01-13 |
| Difference | 0 pp | displayed rates match |
India's wealth tax rate is identical to Japan's — both sit at 0%. The 193-country average is 0.1%: both sit below it.