Japan, one of the world’s most technologically advanced nations, has proactively regulated cryptocurrencies. If you buy, sell, or earn cryptocurrency (Kasō tsūka/仮想 通貨) in Japan, taxes apply sooner than expected. A quick swap, staking reward, or payment in tokens can trigger a reporting duty.
Japan treats crypto differently from stocks, and the rules affect both casual investors and active traders. Missing a detail can lead to errors, extra tax, or follow-ups from the authorities.
This guide explains how crypto taxes work in Japan for the 2025 to 26 period, with a clear look at current rules and upcoming reforms. You will see which activities are taxable, how rates apply, when to report, and what records matter. Each section focuses on practical clarity, so you can assess your position and prepare with confidence.
Key Takeaways
- Cryptocurrency is taxable in Japan and treated as miscellaneous income.
- Gains and rewards added to your total income and attracts tax up to 55% plus 10% inhabitant tax.
- Selling crypto, swapping tokens, using crypto for payments, and earning rewards from staking, mining, DeFi, or airdrops all create taxable events.
- Crypto income above ¥200,000 must be reported, while losses can only offset other miscellaneous income within the same tax year.
- Japan plans to replace the current system with a flat 20% tax from 2026, which may also allow loss offsets and carry forward, subject to approval.
Is Cryptocurrency Taxable in Japan?
Yes, cryptocurrency is taxable in Japan. The National Tax Agency treats digital assets as property, not as legal tender. Profits and rewards from crypto fall under miscellaneous income, which sits outside salary, business, or capital gains income. This classification places crypto within the regular income tax system.
Crypto taxation is guided by the Payment Services Act and the Financial Instruments and Exchange Act. Income tax applies at progressive rates up to 45% based on your total earnings, along with a fixed 10% inhabitant tax. Together, these rules determine how much tax you owe on crypto activity.
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Crypto Tax in Japan: Key Regulations
In Japan, cryptocurrency taxation is governed by guidance issued by the National Tax Agency through official Tax Answer codes. These codes explain how crypto assets are classified and taxed for individuals and businesses under Japan’s income and inheritance tax system.
- Tax Answer No. 1524 – Income Tax: This is the most important guidance for individual crypto investors in Japan. It states that profits arising from selling, swapping, or using crypto assets are generally treated as Miscellaneous Income (雑所得).
- Tax Answer No. 15002 – Gift Tax: Applies when cryptocurrency is received as a gift from another individual. Gift tax may apply if the value exceeds the annual exemption of ¥1.1 million.
- Tax Answer No. 4102 / 4105 – Inheritance Tax: Crypto assets are treated as taxable property when acquired through inheritance. The taxable value is based on the market price of the crypto at the time of death.
Latest Updates On Crypto Tax Japan
Here’s how Japan crypto taxation has changed over the years:
2026: The “Big Reset” (Current Status)
Japan’s 2026 tax reform plan signals a structural shift in how crypto is treated for individuals.
- Flat 20% tax proposal: Crypto is expected to move from miscellaneous income to separate self assessment taxation (申告分離課税), aligning it with stocks and mutual funds at a combined 20% rate.
- Loss carryforward introduced: Crypto losses may be carried forward for up to 3 years to offset future gains.
- Insider trading rules extended: Reclassification under the Financial Instruments and Exchange Act brings insider trading restrictions into the crypto market.
2025: The Transition Year
Regulators focused on tightening oversight while preparing the ground for tax reform.
- FSA reclassification push: Crypto assets were formally proposed to be treated as financial instruments rather than payment instruments.
- Intermediary licensing introduced: New ECISBO licensing rules applied to crypto exchange intermediaries, increasing compliance and reporting obligations.
2024: Expanding Corporate Exemptions
Relief measures for businesses holding crypto were widened.
- Unrealised gains exemption phase 2: Companies could hold third party tokens long term without year end taxation, provided no sale occurred.
- Balance sheet flexibility: Japanese firms gained the ability to hold assets like Bitcoin without forced tax payments on paper gains.
2023: Corporate Relief Begins
The first major tax relief for crypto focused companies was implemented.
- Unrealised gains exemption phase 1: Companies issuing their own tokens were no longer taxed on unrealised gains, reducing pressure to liquidate tokens for tax payments.
2021–2022: The Enforcement Era
This period marked strict enforcement and regulatory foundations.
- Income classification confirmed: Crypto gains remained classified as miscellaneous income (雑所得).
- Maximum tax exposure: Progressive rates continued to apply, reaching up to 55% including inhabitant tax.
- First conviction in 2021: Japan recorded its first major crypto tax evasion conviction, highlighting advanced NTA tracking.
- Stablecoin reform in 2022: The Diet passed legislation regulating stablecoins as digital money, setting the stage for institutional participation.
Can NTA Track Your Cryptocurrencies?
Yes, the National Tax Agency has strong systems in place to monitor crypto activity in Japan. Oversight does not rely on a single source. Instead, it combines exchange level reporting, global data sharing, and on chain analysis to identify taxable activity and unreported income.
Oversight Through Regulated Crypto Exchanges
All crypto asset exchange service providers operating in Japan must register with the Financial Services Agency. These platforms follow strict KYC and AML rules, which require identity checks and detailed transaction records. This information can be shared with tax authorities when required.
Mandatory Transaction Reporting by Exchanges
Japanese exchanges prepare annual transaction summaries for users and submit relevant data to tax offices. These records allow the NTA to review trading activity, calculate gains, and compare filings against reported income.
International Data Sharing Agreements
Japan works closely with global bodies such as FATF and APG. Through frameworks like CRS and CARF, the NTA can receive information about overseas accounts and foreign platform activity linked to Japanese residents.
Use of Blockchain Analysis Tools
Public blockchains allow transaction tracing. The NTA uses analytics tools to follow fund movements, connect wallets to individuals, and review activity across decentralised platforms when needed.
How Much Tax is Applied on Cryptocurrencies in Japan?
The amount of tax applied to cryptocurrencies in Japan depends on your total income and how your crypto activity fits into it. Since crypto is treated as miscellaneous income, gains and rewards are added to your annual earnings and taxed under the personal income tax system, along with local taxes.
Progressive Income Tax Rates Apply
Crypto income follows Japan’s standard income tax brackets. Rates start at 5% and rise as income increases, reaching 45% for high earners. These rates apply to the taxable portion of your total income, not just crypto related earnings, which means higher overall income can push crypto profits into higher brackets.
Additional Inhabitant Tax Increases the Effective Rate
Alongside national income tax, a flat 10% inhabitant tax applies to all taxable income. When combined with the highest income tax rate, the effective tax burden on crypto can reach up to 55%, making Japan one of the highest taxing countries for individual crypto investors.
Income Threshold and Filing Conditions
If your total income from all sources, including crypto, exceeds ¥200,000 in a year, you must report it on your tax return. Even below this level, reporting becomes mandatory if you claim deductions such as medical expenses or hometown tax benefits.
Special Tax Rules for Certain Taxpayers
Non permanent residents pay a flat 20.42% tax on income earned in Japan, including crypto. Individuals operating through a registered business or corporation follow separate business or corporate tax rules, which can change the overall tax outcome.
Income Tax on Cryptocurrencies in Japan
Cryptocurrency income in Japan is taxed under personal income tax rules as miscellaneous income. Gains from selling, swapping, or spending crypto, along with rewards from mining, staking, or DeFi, are added to your yearly earnings. The NTA uses a progressive tax rate on your cryptocurrencies.
Income Tax Rate in Japan for 2025-26
Here’s the income tax rate in Japan for 2025-26:
Taxable Income (Yen) | Tax Rate |
0 – 1,950,000 | 5% |
1,950,000 – 3,300,000 | 10% |
3,300,000 – 6,950,000 | 20% |
6,950,000 – 9,000,000 | 23% |
9,000,000 – 18,000,000 | 33% |
18,000,000 – 40,000,000 | 40% |
40,000,000 and above | 45% |
Note: Individuals classified as non permanent residents are taxed at a flat rate of 20.42% on income sourced within Japan, including cryptocurrency earnings. |
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What is The New Crypto Tax Reform Proposed in Japan?
Japan is considering a major shift in how cryptocurrency profits are taxed, but the change may take longer than expected. While earlier expectations pointed to a rollout around 2027, recent political inputs suggest the reform may only take effect from January 1, 2028. The government is currently prioritising investor protection and regulatory stability before changing the tax framework.
Key Points From The Proposal
- Crypto profits may move to a separate declaration taxation system instead of being combined with total income
- A unified tax rate of 20% is under consideration, similar to equity investments
- The reform depends on the full implementation and review of crypto regulations under the Financial Instruments and Exchange Act
- Current timelines indicate possible enforcement from January 2028, subject to legislative approval
Overview of Cryptocurrency Taxes in Japan for 2025-26
Here’s how cryptocurrency transactions are taxed in Japan:
Cryptocurrency Transaction | Tax Treatment in Japan |
Buying Crypto With Yen or Fiat | Not taxable |
Holding Crypto | Not taxable |
Transferring Crypto Between Your Own Wallets | Not taxable |
Paying Gas or Network Fees | Not taxable |
Crypto to Crypto Swaps | Taxable under Income Tax |
Selling Crypto for Yen Or Fiat | Taxable under Income Tax |
Spending Cryptocurrency | Taxable under Income Tax |
Mining Crypto | Taxable under Income Tax |
Staking Rewards | Taxable under Income Tax |
Airdrops | Taxable under Income Tax |
Gifting Crypto | Taxable under Gift Tax Rules |
Donating Crypto | Not Taxable if donated to a registered charity |
How Cryptocurrency Transactions Attract Taxes in Japan?
Let’s now understand how different crypto transactions attract taxes in Japan:
Buying Crypto With Yen or Fiat
Buying cryptocurrency using Japanese Yen or any other fiat currency does not create a taxable event in Japan. The National Tax Agency does not treat purchases as income or disposals. Tax only applies later when the asset is sold, exchanged, or used.
Example:
Taro buys Bitcoin worth ¥500,000 using Yen on a registered exchange. Since this transaction only involves purchasing crypto with fiat, no tax applies at this stage and no income is recognised.
Holding Crypto
Holding cryptocurrency without selling, swapping, or using it does not attract tax in Japan. The NTA does not tax unrealised gains, so price changes during the holding period have no tax impact until a disposal or income event occurs.
Example:
Aiko buys Ethereum and keeps it in her wallet for the entire year without selling or using it. Even though the value increases during this period, no tax applies because she has not disposed of the asset.
Transferring Crypto Between Your Own Wallets
Moving cryptocurrency between wallets that you own does not trigger tax in Japan. Since ownership does not change, the NTA does not treat these transfers as disposals or income events. However, accurate records should be kept to prove continued ownership.
Example:
Ken transfers Litecoin from an exchange wallet to his private hardware wallet. As both wallets belong to him, the transfer does not create taxable income and no tax is due.
Paying Gas or Network Fees
Paying gas or network fees on its own does not create a taxable event in Japan. These fees are treated as transaction costs. When directly linked to a taxable disposal or income event, they can be included in the cost calculation to reduce taxable income.
Example:
Mika pays a network fee while transferring crypto during a taxable swap. The fee is added to the transaction cost, which lowers the taxable amount calculated on that swap.
Crypto-to-Crypto Swaps
Swapping one cryptocurrency for another is a taxable event in Japan. The NTA treats the transaction as a disposal of the asset you give up. Income is calculated using the yen value of the disposed crypto at the time of the swap.
Example:
Hiro swaps Bitcoin for Ethereum when the Bitcoin is worth ¥1,200,000. If his acquisition cost was ¥900,000, he enjoys a gain of ¥300,000. This will be added to his income as miscellaneous income.
Selling Crypto for Yen Or Fiat
Selling cryptocurrency for Yen or any other fiat currency is a taxable event in Japan. The profit is treated as miscellaneous income and calculated by subtracting the acquisition cost from the sale proceeds, both valued in yen at the time of the transaction.
Example:
Yumi sells Solana for ¥700,000 after buying it for ¥450,000. The difference of ¥250,000 is recognised as taxable income and added to her annual earnings.
Spending Cryptocurrency
Using cryptocurrency to pay for goods or services is treated as a taxable disposal in Japan. The NTA considers this the same as selling crypto. Income is calculated using the yen value of the crypto on the date of payment, minus its acquisition cost.
Example:
Satoshi uses crypto worth ¥120,000 to buy electronics. If he originally acquired the crypto for ¥80,000, he recognises ¥40,000 as taxable income.
Mining Crypto
Mining cryptocurrency creates taxable income in Japan at the time the rewards are received. The fair market value in yen on the receipt date is treated as miscellaneous income. Any later sale of the mined crypto triggers a separate taxable event.
Example:
Rina receives mining rewards worth ¥300,000 during the year. She must report ¥300,000 as income. If she later sells the crypto for a higher amount, the difference is taxed separately.
Staking Rewards
Staking rewards are taxable in Japan when you receive them. The National Tax Agency treats these rewards as miscellaneous income, valued at their fair market price in yen on the receipt date. If you later sell the rewarded crypto, that sale is taxed separately.
Example:
Yuki earns staking rewards worth ¥200,000 during the year. This amount is added to her annual income. If she later sells the rewards for ¥260,000, the extra ¥60,000 becomes additional taxable income.
Airdrops
Airdrops are taxable in Japan when you gain control over the tokens and a reliable market value exists. The fair market value in yen at receipt is treated as miscellaneous income. If no clear price is available, taxation may occur when the value becomes determinable.
Example:
Naoko receives an airdrop worth ¥90,000 based on market prices on the receipt date. She must report ¥90,000 as income. If she later sells the tokens at a higher price, the increase is taxed separately.
Gifting Crypto
Gifting cryptocurrency triggers tax implications in Japan for both parties. For the sender, gifting is treated as a disposal, and income is calculated using the yen value at the time of the gift minus the acquisition cost.
For the recipient, gift tax rules may apply if the value exceeds annual exemption limits set under Japan’s gift tax framework. Gift tax rates depend on the relationship between the sender and recipient and the total value received during the year.
Example:
Daichi gifts crypto worth ¥600,000 to his friend. Daichi recognises income based on the gain since purchase. The friend may also need to report gift tax if the annual exemption is exceeded.
Donating Crypto
Donating cryptocurrency to a recognised charity does not usually trigger income tax in Japan. The act of donation is not treated as a taxable disposal. In some cases, donations made to qualifying organisations may be eligible for deductions, subject to documentation and approval rules.
Example:
Emi donates crypto worth ¥200,000 to a registered charitable organisation. She does not recognise taxable income on the donation and may be able to claim a deduction if the charity meets eligibility requirements.
How are NFTs Taxed in Japan?
The National Tax Agency has issued formal guidance on January 13, 2023, explaining how different NFT activities should be taxed. While this guidance is not a law, tax authorities rely on it when reviewing filings. NFT taxation depends on whether the activity involves creation, resale, rewards, or transfers, and which tax category applies.
NFT Transaction | Tax Type | Tax Treatment Method |
Creating an NFT and selling it to a third party | Income Tax or Corporate Tax | Treated as miscellaneous income or business income based on activity scale and intent. |
Creating an NFT and gifting it to an acquaintance | Income Tax and Gift Tax | Disposal income for the creator, with possible gift tax for the recipient. |
Non resident creating an NFT and selling on a Japanese platform | Income Tax | Japanese source income subject to domestic tax rules. |
Reselling a purchased NFT | Income Tax | Taxed as miscellaneous income based on yen gain at resale. |
Purchased NFT lost due to unauthorised access | Income Tax | Loss generally not deductible unless linked to business activity. |
Receiving tokens as payment for services | Income Tax or Corporate Tax | Treated as income at fair market value in yen on receipt. |
Receiving tokens when purchasing goods | Income Tax | Income recognised at market value on receipt. |
Receiving in game tokens as gameplay rewards | Income Tax | Taxed as miscellaneous income when credited. |
NFT acquired through inheritance or gift | Inheritance Tax or Gift Tax | Tax applies based on transfer value and existing thresholds. |
Withholding obligations on NFT transactions | Withholding Tax | Applies in limited cases involving service payments. |
NFT creation by digital art creators | Consumption Tax | May apply depending on registration and transaction structure. |
NFT resale by traders or businesses | Consumption Tax | Tax treatment depends on seller status and activity type. |
How To Calculate Crypto Taxes in Japan?
Calculating crypto taxes in Japan requires converting every transaction into yen and applying income tax rules correctly. The process focuses on identifying taxable income, calculating gains from disposals, and applying an approved cost basis method. Each step must be documented accurately, as crypto income is added to total earnings and taxed progressively.
Calculating Income Tax
Income tax applies when you receive crypto through mining, staking, airdrops, or payments for services. The taxable amount is the fair market value in yen on the date of receipt.
Taxable Crypto Income = Fair Market Value in JPY on Receipt Date |
This income is added to your annual earnings and taxed based on your applicable income tax slab, plus inhabitant tax.
Calculating Capital Gains Tax
Japan does not apply a separate capital gains tax to crypto. Gains from selling, swapping, or spending crypto are treated as miscellaneous income.
Taxable Gain = Fair Market Value in JPY at Disposal – Acquisition Cost in JPY |
The calculated gain is added to your total income and taxed at progressive rates.
Accepted Cost Basis Method
The cost basis represents how much you paid to acquire crypto, including transaction fees. Japan allows two cost basis methods, and you must use one consistently for the same asset type when calculating gains and losses.
Moving Average Method
The moving average method calculates an average acquisition cost each time you buy or sell crypto. This average updates continuously as new transactions occur, making it suitable for frequent traders with multiple purchases at different prices.
Total Average Method
The total average method calculates a fixed average cost using all acquisitions made up to the point of sale. This cost remains unchanged until the next disposal, even if additional purchases happen in between transactions.
How to Report Crypto on Taxes in Japan?
In Japan, cryptocurrency income is reported as part of your annual income tax return. You can file either online through the National Tax Agency’s digital system or by submitting paper forms at your local tax office. The method you choose depends on your income sources and filing preference.
Which Form to File For Cryptocurrencies in Japan?
If you file on paper, Form A is generally used when you only have employment income and miscellaneous income such as crypto gains, pensions, or dividends, and you do not have any advance tax payments. Taxpayers with more complex income profiles may need Form B.
How to E-File Your Crypto Taxes in Japan?
When filing online through the e-Tax system, the process usually follows these steps:
- Sign in or create an account on the National Tax Agency portal
- Go to income details and select salary income (給与)
- Choose miscellaneous income (雑（その他）) and proceed to confirmation (確定)
- Answer deduction related questions based on your situation
- Select your e-Tax submission method or link your account with the My Number portal
- Enter your crypto profit or loss in yen under the income amount (収入金額)
- Choose crypto assets (暗号資産) under the income category (種目)
- Provide the exchange name and registered address, adding (ほか) if multiple platforms were used
- Complete the remaining sections of the return and submit based on your personal income details
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When to Report Crypto on Taxes in Japan?
Japan follows a calendar year tax system running from January 1 to December 31. Cryptocurrency income earned during this period must be reported in the following filing season.
Individual taxpayers are required to submit their income tax return and pay any tax due by March 15, or the next business day if it falls on a holiday.
How Can You Reduce Your Crypto Taxes in Japan?
While crypto taxes in Japan are strict, certain planning steps can help reduce your overall tax burden when used carefully and within the rules.
Manage Income Around the Annual Threshold
If your total miscellaneous income, including crypto gains, stays below ¥200,000 in a year, you may not need to file a separate return for it. However, this exemption does not apply if you claim deductions such as medical expenses, in which case all crypto income must be reported.
Hold Assets Instead of Frequent Trading
Buying and holding cryptocurrency does not trigger tax in Japan. Tax only applies when you sell, swap, or spend crypto. Holding assets allows you to defer tax on unrealised gains to a future year.
Plan Disposals Based on Your Income Level
Crypto gains are added to your total income and taxed at progressive rates. Selling assets during a year when your income is lower can reduce the rate applied to your crypto profits.
Use Donations to Qualified Charities
Donating crypto to an approved charitable organisation can reduce taxable income. The deductible amount usually equals the donation value minus ¥2,000, subject to an overall deduction cap based on income.
Claim Allowable Expenses
Certain costs can reduce taxable gains when clearly linked to crypto activity. These may include trading fees, acquisition costs, and documented expenses such as internet usage or equipment related to trading.
How Can KoinX Help With Crypto Taxes in Japan?
Tracking crypto taxes in Japan can become difficult when trades span multiple wallets, exchanges, and income types. Calculating yen values, applying the correct income rules, and preparing reports for filing takes time and accuracy. KoinX simplifies this process by offering a reliable way to calculate, organise, and prepare crypto tax data in line with Japanese tax requirements.
Seamless Integration Across Platforms
KoinX connects with over 800 blockchains, wallets, and exchanges to capture your complete transaction history. It automatically identifies transfers between your own wallets and consolidates data in one place, reducing manual effort and improving accuracy across complex trading activity.
Compliance Ready Tax Reporting
KoinX generates reports aligned with National Tax Agency reporting standards. It correctly accounts for income from mining, staking, airdrops, and disposals, ensuring your crypto activity is categorised and calculated according to current Japanese tax rules.
Real Time Portfolio Insights
All your crypto transactions are unified into a single dashboard. KoinX helps you review holdings, track performance, and monitor portfolio allocation in real time, making it easier to understand how your assets perform across chains and protocols.
Automatic Transaction Classification
Every transaction is automatically grouped into clear categories such as trades, income, or rewards. This structured classification helps you review category wise gains and losses without sorting data manually or relying on spreadsheets.
Strong Focus on Safety and Security
KoinX uses end to end encryption to protect personal information and transaction data. Your identity, financial records, and portfolio details remain secure while you manage and prepare your tax information.
If you want a simpler way to calculate crypto taxes in Japan without missing details, KoinX can help. From tracking transactions to preparing tax ready reports, the platform handles the complexity for you. Start using KoinX today to stay organised, accurate, and confident when reporting your crypto activity.
Conclusion
Crypto taxes in Japan apply to most trading, income, and reward activities. Gains are treated as miscellaneous income, taxed at progressive rates with local tax added. Clear rules govern disposals, income events, reporting deadlines, and record keeping, while future reforms may reshape how crypto is taxed from 2028 onward.
Managing these rules manually can take time, especially when transactions span wallets and platforms. KoinX fits naturally into this process by helping you calculate gains, organise records, and prepare tax ready reports aligned with Japanese requirements. Use KoinX today to handle crypto taxes with accuracy, clarity, and confidence.
Frequently Asked Questions
How are Crypto Losses Taxed in Japan?
Crypto losses in Japan can only be used to offset gains classified as miscellaneous income within the same tax year. They cannot reduce salary, interest, or other income types. If losses exceed gains, the unused amount cannot be carried forward to future years.
Do You Have To Pay Tax On Crypto Held On Foreign Exchanges?
Yes, Japanese residents must report crypto income regardless of where the assets are held. Crypto stored on foreign exchanges or wallets must still be included in your yen denominated records. Failing to report overseas activity can lead to penalties, as the NTA cooperates with foreign authorities for data sharing
How Is DeFi Taxed In Japan?
DeFi income in Japan is taxed as miscellaneous income when rewards are credited. Yield farming, interest, and liquidity rewards are valued in yen at receipt. Depositing tokens into liquidity pools is treated as a disposal, while gas fees linked to taxable transactions can be included as deductible costs.
What Happens If You Do Not Report Crypto Taxes In Japan?
Not reporting crypto income can result in penalties, interest, and additional tax assessments. In serious cases, the NTA may initiate audits or investigations. Japan actively monitors crypto activity through regulated exchanges, international cooperation, and blockchain analysis, making non reporting a high risk approach.
Is Japan A Crypto Friendly Country?
Japan is often considered crypto friendly due to its early regulatory clarity. Bitcoin has been recognised as a legal means of payment since 2017, and crypto exchanges operate under a licensing system. Traditional financial institutions have also entered the blockchain space, which has helped build trust and improve market maturity.
Is Crypto Taxed In Japan If You Are A Non Permanent Resident?
Yes, crypto income can still be taxed in Japan if you are a non-permanent resident. Income sourced within Japan, including crypto gains and rewards earned while residing there, is taxable. Such income is generally subject to a flat rate of 20.42%, rather than progressive income tax slabs.
What Is The 5 Year Tax Rule In Japan?
The 5 year rule determines tax residency status. A permanent resident includes Japanese nationals and individuals who have lived in Japan for more than 5 of the past 10 years. Permanent residents are taxed on worldwide income, while non permanent residents are generally taxed only on Japan sourced income.