Estimates of average marginal tax rates on factor incomes in Japan

► We estimate average marginal tax rates on factor incomes in Japan. ► We adapt the method of Joines (1981) to the Japanese tax and social security system. ► Tax rates on labor incomes with social security have increased from 21% to 33%. ► Tax rates on capital incomes have fluctuated between 35% and 58%. ► Our estimates are compared with average tax rates and the labor and capital wedges.