Guide
Crypto Tax in Japan: The Complete Guide (Calculation, Filing, Records, Reform)
Bottom line: progressive "miscellaneous income" now, flat 20% proposed
In Japan, profits from crypto are generally classified as miscellaneous income (雑所得) and added to your other income (such as salary) under progressive taxation — meaning the more you earn, the higher the rate, up to roughly 55% (income tax + resident tax combined). Separately, the ruling party's December 2025 tax-reform outline proposed moving crypto to a flat 20% separate tax, in line with stocks — but this is still at the outline/proposal stage, not enacted law.
This pillar builds on the basics in Crypto Tax in Japan (basics) and is your end-to-end map of calculation, filing, record-keeping, and the coming reform.
Key points
- Tax is triggered when a profit is realized: selling for yen, swapping one crypto for another, spending crypto, or receiving staking/mining rewards. Merely holding (unrealized gains) is generally not taxed.
- Default category is miscellaneous income under progressive rates. It generally cannot be offset against other income, and losses cannot be carried forward.
- Salaried workers may not need to file income tax if non-salary income is ¥200,000 or less per year — but resident tax may still require a separate filing.
- Cost basis uses the total-average or moving-average method; without a filing it defaults to total-average, and the choice is generally fixed for 3 years.
- The Dec 2025 outline proposes a flat 20% separate tax — not yet law, expected (if enacted) from the year after the revised financial-instruments law takes effect (potentially 2028 onward).
This is a map, not tax advice
Tax rules are complex, change over time, and depend on your situation. Always confirm your actual calculation and filing with Japan's NTA or a tax professional. This is educational content.
STEP 1: When are you taxed? (the timing map)
You are taxed when a profit is realized:
| Trigger | Example | How profit is figured |
|---|---|---|
| Sell for yen | Sold BTC for JPY | Sale price − cost basis − fees |
| Crypto-to-crypto swap | Swapped BTC for ETH | Treated as a sale at the swap-time market value |
| Spending | Paid for goods in crypto | Same as selling at the spend-time value |
| Receiving rewards | Staking / mining / airdrop / lending | Market value at receipt is income |
The most common mistake
"I didn't cash out to yen, so it's tax-free" is wrong. A crypto-to-crypto swap is a taxable event in Japan. This is where under-reporting most often happens.
STEP 2: Cost-basis methods (total-average vs moving-average)
Profit = sale price − cost basis. When you buy the same coin in several lots, you need a per-unit cost basis, and there are two methods:
| Method | Logic | Notes |
|---|---|---|
| Total-average (default) | Yearly total cost ÷ total quantity | Simple; applies if you don't file a choice |
| Moving-average | Recompute the average each time you buy | More precise but more work |
Rules: file your method choice by the tax deadline (the NTA filing form); no filing defaults to total-average; the choice is generally fixed for 3 years and applied per coin.
STEP 3: How the tax adds up (progressive)
Miscellaneous income is added to your total taxable income and taxed at progressive rates (income tax 5–45%) plus resident tax (~10%). A key drawback: it cannot be offset against other income, and losses cannot be carried forward — unlike listed-stock losses.
Treat the numbers as concepts
Actual tax depends on deductions, your other income, and your municipality. Confirm the rate tables at the NTA and simulate with a professional or filing software.
STEP 4: Do you need to file? (the ¥200,000 guide)
- Salaried workers: if non-salary income (including crypto profit) is ¥200,000 or less per year, income-tax filing may not be required.
- But resident tax is outside this rule and may still require a separate filing.
- Pensioners, sole proprietors, and people with multiple income sources have different conditions.
"Under ¥200,000 so I do nothing" is risky
There are many exceptions (resident-tax filing; if you file a return for medical-expense deductions you must include crypto profit even if under ¥200,000). Ask a professional.
STEP 5: Records and bookkeeping (the most important step)
Accurate filing rests on records. Keep them from the moment you buy — reconstructing later is painful.
Minimum to keep:
- Your exchange's annual report / trade-history CSV
- Date, coin, quantity, yen rate, and fee for each trade
- Transfer and wallet movement records (a transfer isn't a sale, but you must track it)
- Receipt date and market value of rewards (staking/airdrops, etc.)
Common failures: losing overseas-exchange or DeFi history (especially if a platform exits Japan); forgetting crypto-to-crypto swaps; ignoring small rewards/airdrops; losing proof of cost basis (which overstates your gain).
STEP 6: The big 2026 development — a proposed flat 20% separate tax
The FY2026 (令和8年度) tax-reform outline, published December 19, 2025, proposed taxing crypto like stocks and funds — a flat 20% separate tax (15% income + 5% resident; reconstruction surtax extra). It is paired with the shift to the financial-instruments law (FIEA).
| Item | Now (June 2026) | Proposed in the outline |
|---|---|---|
| Category | Miscellaneous, progressive | Separate tax (for eligible assets) |
| Rate | Progressive (up to ~55%) | Flat 20% |
| Offsetting losses | Generally not allowed | Allowed within the separate regime (planned) |
| Loss carry-forward | Not allowed | 3-year carry-forward (planned) |
| Effective date | — | Year after the revised law takes effect (potentially 2028+) |
Still an outline/proposal
An outline is the government's intent, not enacted law. Eligibility is limited to "specified crypto assets registered with the financial-instruments registry," so not every domestically listed coin may qualify. Confirm with the FSA and NTA. See also the 2026 framework update and yen stablecoins.
Checklist (save this)
- [ ] You save trade history (CSV / annual report) after each trade
- [ ] You include crypto-to-crypto swaps and spending in your profit calculation
- [ ] You record the receipt-time value of rewards/airdrops
- [ ] You know and have filed your cost-basis method (total/moving average)
- [ ] You've checked the ¥200,000 and resident-tax rules for your case
- [ ] You confirmed unclear points with the NTA's latest FAQ or a tax pro
FAQ
Q. Do I always have to file if I made a profit? A. It depends (e.g., the ¥200,000 guide for salaried workers). Resident tax may still apply, with many exceptions — confirm with the NTA or a professional.
Q. Is swapping one crypto for another taxable even without cashing out? A. Generally yes — profit is figured at the swap-time market value.
Q. Can I offset a losing year against my salary or stock gains? A. Not under the current miscellaneous-income rules, and losses can't be carried forward (this could change if the proposed separate tax becomes law).
Sources
- NTA FAQ on crypto tax: https://www.nta.go.jp/publication/pamph/pdf/virtual_currency_faq_03.pdf
- NTA cost-basis method filing: https://www.nta.go.jp/taxes/tetsuzuki/shinsei/annai/shinkoku/annai/21kasou.htm
- FSA, FY2026 tax-reform items (Dec 2025): https://www.fsa.go.jp/news/r7/sonota/20251226-2/01.pdf
- Daiwa Institute of Research, 20% separate tax (Feb 2026): https://www.dir.co.jp/report/research/law-research/tax/20260206_025575.html
Important notice
This article is educational information, not investment or tax advice. Crypto carries risk of price swings and hacking. Rules and tax law change; this guide reflects publicly available information as of June 2026. Verify the latest details with Japan's NTA (tax), the FSA (regulation), or a licensed professional, and only invest money you can afford to lose.
This article is informational only and is not financial, investment, or trading advice. Prices are reference snapshots and may be outdated. Always do your own research.
