Crypto Tax in Japan (and the 2026 Reform)

Reviewed by Jordy Meow & Emi (accountant) · Updated 23 Jun 2026 · About

Cryptocurrency is one of the most awkward things to be taxed on in Japan, because right now it is taxed as income, not as an investment. That means rates far higher than the flat 20% that shares enjoy. A reform is on the way to fix this, but it is not fully here yet. Here is where things stand.

This is general information, not tax advice. Crypto tax gets complicated for cross-border holders and the rules are mid-reform, so for anything sizeable talk to a tax accountant⁴.

How crypto is taxed right now #

In Japan, profit from crypto assets¹ (暗号資産) is treated as miscellaneous income² (雑所得). It is added on top of your salary and other income, and taxed at Japan's progressive rates. Stack the income tax (5% to 45%), the 10% resident tax, and the 2.1% reconstruction surtax, and a big crypto year can be taxed at close to 55%.

This is the key thing to understand: crypto is not taxed like a stock. Listed shares are taxed at a flat ~20%; crypto is taxed like extra salary.

What actually triggers tax #

You are not taxed for holding. Tax is triggered when you dispose of crypto, and there are more triggers than people expect:

• Selling crypto for yen.
• Swapping one crypto for another (crypto-to-crypto is a taxable event, even with no yen involved).
• Spending crypto on goods or services.
• Earning crypto: staking and lending rewards, mining, airdrops, or being paid a salary in crypto.

For each disposal, your gain is the proceeds minus your cost basis, and Japan expects you to track this across every transaction and every exchange.

Reporting it #

Crypto gains go on your annual final tax return (確定申告³), filed in February and March. A couple of points that catch people out:

• If you are a company employee, you generally must file once your total side income (crypto plus anything else) exceeds ¥200,000 in the year.
• If you are a tax resident of Japan, your worldwide crypto gains are in scope, not just trades on Japanese exchanges. How much of your foreign-sourced gain is taxable depends on your residence status, the same rule explained in our tax return guide.

Curious what a given amount of extra income does to your tax? Add it to your salary in the tax calculator for a rough idea.

The 2026 reform: toward a flat 20% #

The good news is that Japan has been moving to tax crypto more like a normal investment. The 2026 tax reform direction is to treat certain "listed" crypto assets under a separate, flat tax of around 20% (national plus resident), with the ability to carry losses forward for a few years, instead of the punishing up-to-55% income treatment.

The important caveats:

• It is being phased in, with full effect expected only later (around 2028), not the moment you read this.
• It is expected to apply to specified / registered crypto assets, not necessarily everything.

So treat the flat 20% as the direction of travel, not today's rule. Until it is actually in force for your assets, the miscellaneous-income rules above are what you file under.

Practical tips #

• Keep every record. Export the annual transaction reports from each exchange you use. Reconstructing a year of trades by hand is misery.
• Know your cost-basis method. Japan uses moving-average or total-average methods; pick one and be consistent.
• Consider crypto tax software to total it all up, and a tax accountant for a big or cross-border year.
• If you are leaving Japan, settle your crypto position thoughtfully and see our leaving Japan guide for the wider exit checklist.

Official references: National Tax Agency, crypto-asset tax treatment (FAQ) · NTA English, income tax

This might help #

¹ Crypto asset : 暗号資産 angō shisan
² Miscellaneous income : 雑所得 zatsu shotoku
³ Final tax return : 確定申告 kakutei shinkoku
⁴ Tax accountant : 税理士 zeirishi