Quick Answer
In Japan, crypto gains are taxed as 雑所得 (miscellaneous income) at your marginal income tax rate — which can be up to 55% (income tax + resident tax). Unlike stocks, crypto does NOT get the favorable 20.315% flat rate. You must report gains on your 確定申告 if they exceed ¥200,000.
How crypto is taxed in Japan 暗号資産の課税方法
In Japan, cryptocurrency (暗号資産, formerly called 仮想通貨) is classified as 雑所得 (miscellaneous income) under 所得税法第35条. This is the single most important thing to understand about crypto tax in Japan, because it determines everything else -- the rate you pay, how you report, and what deductions you can take.
Unlike stocks and ETFs, which enjoy a flat 20.315% tax rate in Japan regardless of your income, crypto gains are added to your regular income and taxed at your marginal tax rate. Japan's income tax is progressive, ranging from 5% to 45%. Add 10% resident tax (住民税) on top, and the effective rate on crypto gains can reach up to 55%.
| Taxable income | Income tax rate | + Resident tax | Total rate |
|---|---|---|---|
| Up to ¥1,950,000 | 5% | 10% | 15% |
| ¥1,950,001 - ¥3,300,000 | 10% | 10% | 20% |
| ¥3,300,001 - ¥6,950,000 | 20% | 10% | 30% |
| ¥6,950,001 - ¥9,000,000 | 23% | 10% | 33% |
| ¥9,000,001 - ¥18,000,000 | 33% | 10% | 43% |
| ¥18,000,001 - ¥40,000,000 | 40% | 10% | 50% |
| Over ¥40,000,000 | 45% | 10% | 55% |
Why does this matter? Consider a foreigner earning ¥8M salary. Your marginal rate is already 33% (income + resident tax). Any crypto gains stack on top of your salary, pushing you into higher brackets. A ¥5M crypto profit could easily be taxed at 33-43%, compared to just 20.315% if those same gains came from stocks in a 特定口座.
This is why many financial advisors in Japan suggest using NISA or taxable brokerage accounts for investments and being aware of the significantly higher tax cost of crypto. The tax treatment of crypto in Japan is among the harshest in the developed world.
Key difference from stocks
Crypto gains = 雑所得 (miscellaneous income) = taxed at your marginal rate (up to 55%). Stock gains = 譲渡所得 (capital gains) = flat 20.315%. Same profit, very different tax bills. There is ongoing political discussion in Japan about changing crypto to the 20.315% flat rate, but as of 2026, crypto remains 雑所得.
Taxable events 課税対象となる取引
Not every crypto transaction triggers a tax event. But many more transactions are taxable than most people realize. The National Tax Agency (国税庁) has published detailed guidance on exactly which events create taxable income. Here is the complete list:
Selling crypto for JPY (or any fiat)
The most obvious taxable event. If you bought 1 BTC for ¥3,000,000 and sell it for ¥8,000,000, you have a taxable gain of ¥5,000,000. This applies to selling on any exchange -- Japanese (bitFlyer, Coincheck, GMO) or foreign (Binance, Coinbase).
Trading crypto-to-crypto
This catches many foreigners off guard. Swapping BTC for ETH is a taxable event. The NTA treats this as selling BTC at its current JPY market value and using the proceeds to buy ETH. If BTC appreciated since you acquired it, you owe tax on the gain -- even though you never touched JPY.
Using crypto to pay for goods or services
If you use Bitcoin to buy a laptop worth ¥200,000, and your BTC acquisition cost was ¥100,000, you have a taxable gain of ¥100,000. The NTA explicitly addresses this in タックスアンサー No.1524. Every purchase with crypto is effectively a sale at market value.
Receiving crypto as payment for work
If your employer or client pays you in cryptocurrency, the JPY value at the time of receipt is taxable income. For employees, this would typically be classified as 給与所得 (salary income). For freelancers, it is 事業所得 (business income) or 雑所得 depending on the nature of the work.
Mining and staking rewards
Crypto received through mining or staking is taxable at the JPY market value at the time you receive it. This is classified as 雑所得. The acquisition cost of the mined/staked crypto becomes its JPY value at receipt -- any further gains when you later sell are taxed separately.
NOT taxable
Simply holding (HODL) crypto is not a taxable event. Unrealized gains are not taxed. Transferring crypto between your own wallets (e.g., from Coincheck to your Ledger hardware wallet) is also not taxable -- as long as you are not changing the asset. Buying crypto with JPY is not taxable by itself.
Calculation methods 取得価額の計算方法
When you sell or trade crypto, you need to calculate your gain or loss. The gain is: sale price minus acquisition cost (取得価額). The tricky part is determining the acquisition cost when you have bought the same coin at different prices over time. The NTA allows two methods (タックスアンサー No.1525):
| 総平均法 (Total Average Method) | 移動平均法 (Moving Average Method) | |
|---|---|---|
| How it works | Average cost of all purchases during the year (plus carryover from previous year) | Recalculates average cost each time you buy |
| Complexity | Simple -- one calculation per coin per year | Complex -- recalculate after every purchase |
| Best for | Most individuals (and the default if you don't choose) | Active traders who want more precise tracking |
| Can you switch? | You must file a 届出書 to change methods. Once chosen, you must use the same method for at least 3 years. | |
| Default | Yes -- this is the default method | Must elect by filing a notification |
Example using 総平均法: You bought 1 BTC in January for ¥4,000,000 and another 1 BTC in June for ¥6,000,000. Your total cost is ¥10,000,000 for 2 BTC, so the average cost per BTC is ¥5,000,000. If you sell 1 BTC in October for ¥7,000,000, your gain is ¥7,000,000 - ¥5,000,000 = ¥2,000,000.
For most foreigners, the 総平均法 (total average method) is the way to go. It is simpler, it is the default, and crypto tax tracking tools like CryptoTact and Gtax support it natively. Unless you are a very active trader who specifically benefits from the moving average calculation, stick with the default.
Important
You must calculate gains separately for each coin. Your BTC average cost, ETH average cost, and SOL average cost are all tracked independently. You cannot offset gains from one coin with losses from another coin within the same 雑所得 category -- but you CAN net all your crypto gains and losses together since they are all 雑所得.
Filing requirements 確定申告の要件
Whether you need to file a tax return (確定申告) for crypto gains depends on your employment type and the amount of gain:
Salaried employees (給与所得者)
If your total 雑所得 (including crypto gains) exceeds ¥200,000 in a calendar year, you must file 確定申告. If your crypto gains are ¥200,000 or less AND you have no other reason to file, you do not need to file a national income tax return. However, you still need to file a 住民税 (resident tax) return with your municipality -- the ¥200,000 threshold only applies to national income tax.
Freelancers and sole proprietors (個人事業主)
You must file 確定申告 regardless of the amount. Crypto gains are reported as 雑所得, separate from your 事業所得 (business income). Note: even if your crypto activity is substantial, it is generally classified as 雑所得, not 事業所得, unless you can demonstrate it is your primary business activity.
How to report on 確定申告
Crypto gains go on 確定申告書B in the 雑所得 section (その他). The NTA also provides a dedicated 暗号資産の計算書 (crypto calculation worksheet) that you should attach. This worksheet details each coin, your acquisition cost, sale proceeds, and net gain/loss. Tools like CryptoTact and Gtax can generate this form automatically.
Filing deadline: March 15 of the following year (same as regular 確定申告). For gains made in calendar year 2025, you must file by March 15, 2026.
Recommended tools for tracking:
- CryptoTact (クリプタクト) -- Japan's most popular crypto tax tool. Supports all major Japanese and international exchanges. Automatically calculates gains using 総平均法 or 移動平均法 and generates the NTA calculation worksheet. Free tier for up to 50 transactions.
- Gtax -- Another popular Japan-focused crypto tax service. Clean interface, supports DeFi and NFT transactions. Generates the official NTA form. Pricing starts at ¥8,250/year.
- Koinly -- International tool that supports Japanese tax reporting. Good if you use primarily non-Japanese exchanges. Can export data in the NTA format.
Pro tip
Start tracking from your very first transaction. The biggest headache with crypto taxes is reconstructing years of trades after the fact. Connect your exchanges to a tracking tool now, even if you don't owe taxes yet. Most tools offer free tiers for small portfolios.
DeFi and NFTs DeFi・NFTの税務
Decentralized finance (DeFi) and NFTs have grown enormously, and the NTA has been gradually clarifying their tax treatment. Here is the current guidance:
Staking rewards
Tokens received from staking (e.g., ETH staking rewards) are taxable as 雑所得 at the JPY market value when received. The acquisition cost of the staked tokens becomes that JPY value. If you later sell the rewarded tokens at a higher price, the additional gain is also taxable.
Yield farming and liquidity provision
Rewards earned from providing liquidity (LP tokens, farming rewards) are taxed similarly to staking -- as 雑所得 at the JPY value when received. Impermanent loss is a complex area; the NTA has not issued specific guidance, but the general principle is that realized losses can reduce your 雑所得 total.
Airdrops
Tokens received via airdrop are taxable at JPY market value at the time of receipt. If the airdropped token has zero market value at receipt (e.g., a brand new token with no exchange listing), the acquisition cost is ¥0, and you owe tax when you eventually sell it. If it has market value at receipt, you owe tax immediately.
NFT sales
Selling an NFT you purchased is generally 雑所得 (or 譲渡所得 if it qualifies as a "life-use asset"). Creating and selling NFTs as a business may be classified as 事業所得 if it is your primary business activity. The gain is calculated as sale proceeds minus acquisition cost (what you paid for it, or creation costs like gas fees).
Lending (crypto lending platforms)
Interest earned from lending crypto on platforms like BlockFi or Japanese lending services is taxed as 雑所得 at the JPY value when received. This is similar to bank interest, except it does not benefit from the 20.315% flat rate that applies to regular bank interest.
DeFi complexity
DeFi transactions can generate hundreds or thousands of taxable events per year. If you are actively using DeFi protocols, a crypto tax tracking tool is essential. Manual calculation is practically impossible. CryptoTact and Gtax both support DeFi transaction imports, including Uniswap, Aave, and other major protocols.
Common mistakes foreigners make よくある間違い
After helping many foreigners navigate crypto taxes in Japan, these are the mistakes we see most often:
Thinking "I didn't sell to JPY, so I don't owe tax"
Crypto-to-crypto trades are taxable events. Swapping BTC to ETH, using USDT to buy altcoins, or trading on a DEX -- all trigger tax. This is the single most common mistake. Many foreigners trade actively on Binance or Uniswap, never converting to yen, and assume there is no Japan tax liability. There is.
Assuming the 20.315% flat rate applies to crypto
Crypto is 雑所得, not 譲渡所得. The favorable 20.315% rate that applies to stocks and ETFs does not apply to crypto. Your crypto gains are stacked on top of your salary and taxed at your marginal rate.
Not reporting foreign exchange transactions
Trading on overseas exchanges (Binance, Coinbase, Kraken) does not exempt you from Japanese tax. Japan taxes worldwide income for residents. All crypto gains, regardless of where the exchange is based, must be reported on your 確定申告.
Forgetting the ¥200K threshold only applies to national tax
Even if your crypto gains are under ¥200,000 and you skip 確定申告, you still owe 住民税 (resident tax) on those gains. You need to file a separate 住民税申告 with your municipal office. Many people miss this entirely.
Losing transaction records
If you cannot prove your acquisition cost, the NTA may treat it as ¥0 -- meaning your entire sale proceeds are treated as profit. If you sold 1 BTC for ¥10,000,000 but cannot prove you bought it for ¥6,000,000, the NTA could tax you on the full ¥10,000,000. Always keep records.
NTA enforcement
The NTA has been actively auditing crypto holders since 2018. Japanese exchanges (bitFlyer, Coincheck, etc.) report transaction data directly to the NTA. Foreign exchanges are increasingly sharing data through international tax treaties (CRS). Do not assume that using a foreign exchange means the NTA cannot see your trades.
Frequently Asked Questions よくある質問
Can I offset crypto losses against my salary?
No. Crypto gains are classified as 雑所得, and losses from 雑所得 cannot be offset against other income categories (給与所得, 事業所得, etc.). This is called 損益通算の制限. You can offset crypto losses against other 雑所得 gains (e.g., forex trading gains), but not against your salary. Furthermore, crypto losses cannot be carried forward to future years -- unlike stock losses, which can be carried forward for 3 years.
I brought crypto into Japan from my home country. How is it taxed?
Your acquisition cost is whatever you originally paid for the crypto, converted to JPY at the exchange rate on the purchase date. Japan taxes the gain from that original acquisition cost, not from the date you entered Japan. Keep your original purchase records from your home country.
What about stablecoins (USDT, USDC)?
Stablecoins are treated exactly like any other crypto asset. Buying USDT with JPY is not taxable (just a purchase), but selling USDT back to JPY could generate a gain or loss due to JPY/USD exchange rate fluctuations. Using USDT to buy other crypto is a taxable swap event.
Will Japan ever lower the tax rate on crypto?
There has been significant lobbying from the Japan Blockchain Association (JBA) and others to reclassify crypto gains under the 20.315% flat rate (申告分離課税). The ruling LDP party has discussed this, and there is growing political momentum. However, as of March 2026, crypto remains classified as 雑所得 with progressive taxation. We will update this guide if the law changes.
Should I hire a tax accountant for crypto?
If your crypto gains exceed ¥1,000,000, strongly consider it. A qualified 税理士 (licensed tax accountant) typically charges ¥50,000-200,000 for crypto tax filing, depending on the number of transactions. Given the complexity of crypto-to-crypto trades, DeFi, and the high stakes (up to 55% tax rate plus penalties for underreporting), professional help can pay for itself by ensuring accuracy and identifying all legitimate deductions.
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Sources
- 国税庁 暗号資産に関する税務上の取扱いについて (FAQ)
- 国税庁タックスアンサー No.1524 暗号資産を使用することにより利益が生じた場合の課税関係
- 国税庁タックスアンサー No.1525 暗号資産の取得価額の計算方法
- 所得税法第35条 (雑所得)
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