For US citizens and green card holders in Japan

US Taxes for Americans Living in Japan

An American in Japan deals with two tax systems. This page sets out the US side: the yearly return, accounts held in Japan, double tax relief, social security, and the Streamlined route for missed years.

US returnFBARForm 8938Treaty: yesTotalization: yes

Request a Quote What to File

Quick answer

Do US citizens living in Japan have to file US taxes?

Yes. The US taxes citizens and green card holders on worldwide income wherever they live. Living in Japan gives an automatic extension to June 15, accounts there above US$10,000 in total need an FBAR, and the foreign tax credit or the foreign earned income exclusion (US$132,900 for 2026) usually prevents double tax. The US has an income tax treaty with Japan, and a social security agreement has been in force since October 1, 2005.

Prepared by Illuminous Accounting · Sources checked November 11, 2026

At a glance

Yearly US return: Yes, on worldwide income; due June 15 automatically when living abroad
US tax treaty with Japan: Yes, per the IRS list (saving clause applies to US citizens)
Social security agreement: Yes, in force since October 1, 2005
Accounts in Japan: FBAR above US$10,000 in total; Form 8938 above higher limits
Behind on filing: Streamlined: 3 years of returns, 6 years of FBARs

Do Americans living in Japan have to file US taxes?

Yes. The United States taxes its citizens and green card holders on worldwide income wherever they live, so moving to Japan does not end the yearly US return (IRS Pub 54). Salary, self-employment income, interest and pensions from Japan all go on it, converted from Japanese yen to US dollars.

The return is due April 15. If you live and work outside the US on that date, you get an automatic 2-month extension to June 15, and you can extend further to October 15. Interest still runs on tax paid after April 15.

Reporting Japanese bank and investment accounts

Two separate reports cover money held in Japan, and many Americans there need both.

Report	Who files	When
FBAR (FinCEN Form 114)	Foreign accounts above US$10,000 in total at any time in the year	April 15, automatic extension to October 15 (IRS)
Form 8938	Living abroad: above US$200,000 at year end or US$300,000 at any time if single; US$400,000 / US$600,000 if married filing jointly	With the tax return; US$10,000 penalty if not filed (IRS)

Pension and savings products in Japan can be reportable too, so we list every account before deciding what goes where.

Will I pay tax twice living in Japan?

Most Americans in Japan end up owing little or no US income tax, because tax paid in Japan or the exclusion of foreign earnings offsets it. The exclusion covers up to US$130,000 of earned income for 2025 and US$132,900 for 2026 (IRS); the foreign tax credit instead uses the income tax you paid in Japan.

The US has an income tax treaty with Japan (IRS treaty list), but US treaties contain a saving clause: they generally do not reduce US tax for US citizens, with specific exceptions written into each treaty (IRS Pub 54). So the treaty helps at the edges, for example with pensions or the order of tax credits, while the main relief comes from the exclusion or the credit.

See FEIE vs foreign tax credit for how the two compare.

Missed years while living in Japan

Behind on US filings while living in Japan? Eligible non-willful filers who live abroad can use the Streamlined Foreign Offshore Procedures: file the last 3 years of returns and 6 years of FBARs, pay any tax and interest, and the IRS does not charge the usual failure-to-file, information return or FBAR penalties (IRS). More in our Streamlined guide.

The local side

Americans in Japan include English teachers, employees of Japanese and US companies, and spouses of Japanese citizens.

Your tax in Japan is a matter for a local adviser. We take their final figures and make sure the US return gives you the relief it should.

How we help

Gurleen Kaur, CPA licensed in British Columbia and Washington State, prepares and signs US returns for Americans living in Japan: the yearly return with the exclusion or credit, FBAR and Form 8938, and Streamlined catch-up. Every engagement starts with a fixed written quote after we review the file. See the yearly filing package.

Where these rules come from (Japan)

Treaty and social security

The IRS lists the 2003 income tax treaty, signed November 6, 2003, amended by protocols listed for 2003 and 2013. General effective date (IRS Table 3): treaty Jan. 1, 2005; protocol Jan. 1, 2020 (IRS treaty documents for Japan; treaty text; IRS Table 3).
Saving clause: subparagraph (a) of paragraph 4 of Article 1 (General Scope), which lets the United States tax its citizens as if the treaty had not come into effect, apart from listed exceptions.
Article 23 (Relief from Double Taxation), on relief from double taxation.
Article 17 (Pensions, Social Security, Annuities, and Support Payments), on pensions and social security.
Social security: the US agreement with Japan entered into force on October 1, 2005 (SSA).

US law

Form 8938: Code section 6038D and Treas. Reg. section 1.6038D (IRS Form 8938 instructions).
FBAR: 31 USC 5314 and 31 CFR 1010.350 (IRS Internal Revenue Manual 4.26.16).
Green card holders and residency: Code section 7701(b) (IRS Pub 519).
Foreign earned income exclusion: Code section 911 (IRS Form 2555 instructions).
Foreign tax credit: Code section 901 (IRS Pub 54).

The tax rules of Japan also apply to you there; a local adviser covers that side.

Common questions

I moved to Japan. Do I still file a US return?

Yes. US citizens and green card holders file a US return on worldwide income wherever they live. Living in Japan on April 15 gives an automatic extension to June 15, and tax paid in Japan or the foreign earned income exclusion often reduces the US tax to little or nothing.

Does the US-Japan tax treaty stop double taxation?

Partly. The treaty exists, but its saving clause lets the US tax its own citizens as if there were no treaty, with listed exceptions. The main relief is the foreign tax credit or the foreign earned income exclusion.

Do I pay social security in both the US and Japan?

Generally not. The US-Japan social security agreement, in force since October 1, 2005, assigns your work to one system.

What if I never filed US taxes while living in Japan?

If it was not willful, the Streamlined Foreign Offshore Procedures let you file 3 years of returns and 6 years of FBARs, and eligible people living abroad do not pay the usual failure-to-file, information return or FBAR penalties.

Sources

Every rule and figure on this page links to the IRS, CRA or other official source it comes from. Amounts change; we re-check them before each engagement.

Gurleen Kaur, CPA licensed in British Columbia and Washington State. Last updated November 11, 2026. This page is general information, not tax or legal advice for your situation.

Living in Japan? Request a quote

Tell us your situation in a few lines. We confirm whether we can help, what records matter and the next step. Substantive advice begins under a paid diagnostic or signed engagement.

Prepared and signed by a licensed US CPA who can represent you before the IRS. Verify Gurleen Kaur's Washington licence (#41150) on CPAverify

Call +1-778-325-0564 [email protected]

Name

Phone optional

Service needed

Briefly describe what you need

How did you find us? optional

By submitting, you agree that Illuminous Accounting may use this information to respond to your inquiry. Please do not include account numbers or other sensitive documents. If we work together, documents come in through our secure client portal, never by email. Read our privacy notice.