Advice Needed – Timing of Retiring before moving US to Japan

Good Morning / Afternoon Everyone,

I need some advice on the timing of my retirement before moving to Japan. I'm trying to minimize Japan's "Personal Income Tax Rate." I've heard this has been a horror story for many retirees retiring and moving immediately to Japan. Here's the wording…..

Japan's personal income tax system is progressive, with national income tax rates ranging from 5% to 45% based on income, plus a mandatory 10% flat local inhabitant's tax. 

The tax rate for 2026 is:

Taxable income (JPY*) Approximate USD equivalent Tax rate (%)
0–1,950,000 $0–$12,400 5
1,950,000–3,300,000 $12,400–$21,000 10
3,300,000–6,950,000 $21,000–$44,300 20
6,950,000–9,000,000 $44,300–$57,300 23
9,000,000–18,000,000 $57,300–$114,600 33
18,000,000–40,000,000 $114,600–$254,800 40
40,000,000 and above $254,800 and above 45

It sounds like you'll be taxed on the previous year's income. If I retire or take a minimum part-time job in the previous year, will the Personal Job Income Tax Rate only apply to that income? This should put me in the top two brackets (5-10% tax rate). Are there any gaps in my logic that I may be missing?

Thank you in advance.

by Middle-Repair-2604