Crypto Tax in Japan | Tax Rates, Calculation Examples, and Filing Basics

You bought a bit of Bitcoin because a friend recommended it. Months later it's up, and a new question surfaces: "Do I owe taxes on this?" A quick search turns up "up to 55%" and suddenly the gains don't feel as exciting. Here's how crypto tax actually works in Japan — with numbers, not just scary percentages.

Crypto gains are taxed as miscellaneous income — up to 55%

Under Japan's Income Tax Act, cryptocurrency profits are classified as "miscellaneous income" (雑所得) and taxed at progressive rates from 5% to 45%, plus 10% resident tax, for a combined maximum of 55% (NTA Crypto FAQ, December 2025 revision).

The 55% rate only kicks in above ¥40 million (~$266,000) in taxable income, so small gains won't be hit anywhere near that hard. Still, compared to the flat 20.315% rate on stock market gains, crypto carries a heavier tax burden in Japan. For most people in their twenties, the effective rate on crypto profits lands around 20%. We'll walk through the math below.

Japan's income tax uses seven brackets:

Source: NTA Income Tax Rates (No. 2260) / MOF tax burden data

Add 10% resident tax on top of these rates for the total burden.

6 transactions that trigger tax

It's not just cashing out to yen. Several other crypto actions create taxable events in Japan.

Source: NTA Crypto FAQ (December 2025)

The most commonly overlooked one is the swap. Converting Bitcoin to Ethereum triggers a taxable event even though you never touched yen. If you're swapping tokens on DeFi regularly, those transactions can pile up faster than you'd think.

A worked example: ¥300,000 profit on a ¥2M taxable income

Let's run the numbers for a young salaried worker with ¥2 million (~$13,300) in taxable income who made ¥300,000 (~$2,000) profit on Bitcoin.

The salary taxable income is ¥2,000,000 and the crypto profit is ¥300,000, giving a combined taxable income of ¥2,300,000. Using the quick calculation table:

• With crypto: ¥2.3M × 10% − ¥97,500 = ¥132,500
• Without crypto: ¥2.0M × 10% − ¥97,500 = ¥102,500
• Income tax on crypto portion: ¥30,000 (~$200)
• Resident tax on crypto portion: ¥300,000 × 10% = ¥30,000 (~$200)

Total tax on ¥300,000 of crypto profit: about ¥60,000 (~$400) — an effective rate of roughly 20%.

The 55% headline is real but distant at this income level. The actual hassle is more about gathering transaction records and calculating gains than the tax bill itself.

Cost basis: total average vs. moving average

To calculate gains, you need to know your cost basis — what you paid per unit. If you bought crypto multiple times, you must choose a method to average out the cost.

Japan allows two methods. If you don't file a notification, total average (総平均法) applies automatically (NTA notification procedure).

If you trade frequently, a crypto tax tool (Cryptact, Gtax, etc.) is practically essential. Import your exchange CSV files and let it do the math — much better than trying to work it out by hand in late February.

The "under ¥200,000" rule — and its trap

Salaried workers in Japan who have completed year-end tax adjustment (年末調整) and whose non-salary income totals ¥200,000 (~$1,330) or less per year are exempt from filing an income tax return (NTA No. 1900). But there's a catch that trips up a lot of people.

Another thing to watch: the ¥200,000 threshold counts all non-salary income combined. If your crypto profit is ¥150,000 but you also earned ¥80,000 selling items on Mercari, your total non-salary income is ¥230,000 — above the threshold, and you need to file.

Related readIs Collecting Money for a Group Dinner a Taxable Gift? (Japan's Gift Tax, Explained)

Japan's NTA is stepping up crypto audits: 613 field investigations in the Reiwa 6 business year (July 2024–June 2025), up 14.6% year-on-year, resulting in ¥4.6 billion in additional tax assessments (Atarashii Keizai, NTA Reiwa 6 business year results). Assuming small amounts fly under the radar is not a safe bet.

2028: flat 20.315% tax rate is coming

In March 2026, Japan enacted a revised Income Tax Act that will fundamentally change how crypto is taxed. After a parallel amendment to the Financial Instruments and Exchange Act (FIEA), the new rules are expected to take effect from January 2028 (Daiwa Research Institute, February 2026).

Two caveats. The flat rate will likely apply only to transactions through domestically registered exchanges. Trades on overseas exchanges or DEXs may remain subject to progressive taxation at up to 55%. And while you'll be able to offset crypto losses against crypto gains, cross-asset netting with stock market gains won't be allowed.

FAQ

Q. Is swapping Bitcoin for another cryptocurrency a taxable event?

Yes. When you swap Bitcoin for Ethereum, the NTA treats it as selling Bitcoin at its market value at the time of the swap. The difference between that value and your cost basis is taxable — even though you never converted to yen.

Q. Are stablecoin payments (JPYC, etc.) taxed?

Yen-pegged stablecoins like JPYC are classified as "electronic payment instruments" (電子決済手段) under the Payment Services Act (資金決済法). Using them at face value for settlement generates no gain or loss. However, swapping a volatile crypto asset (like BTC) into JPYC creates a taxable event on the crypto side. For a step-by-step guide on settling expenses with stablecoins, see how to settle split bills with cryptocurrency.

Q. Can I carry forward crypto losses to offset future gains?

Under the current rules (through tax year 2027), no. You can offset gains and losses within the same year across different crypto assets (e.g., Bitcoin losses against Ethereum gains), but you cannot carry losses into the following year. Starting from tax year 2028, a three-year loss carryforward is expected to be introduced.

How you store your crypto matters just as much as how you report it. If leaving assets on an exchange feels risky, consider self-custody with a hardware wallet.

Related readHow to choose a hardware wallet — keeping your crypto safe with self-custody

Wrapping up

Download your transaction history from your exchange at year-end, run it through a tax calculation tool, and file if you're above the ¥200,000 threshold. Even below it, don't forget resident tax. The 20% flat rate arrives in 2028, so getting comfortable with the filing process now means you'll be ready when the rules change.

This article provides general information and does not constitute individual tax advice. For specific tax situations, consult a tax accountant or your local tax office.