Crypto Taxes in Japan 2026 – English Guide to NTA Rules

Japan taxes cryptocurrency under some of the strictest rules among major economies. This English guide explains the NTA's classification of crypto as miscellaneous income, the high tax rates, and how to file.

Japan's Classification of Cryptocurrency

Japan's National Tax Agency (NTA) classifies cryptocurrency gains as miscellaneous income (zatsu shotoku) – the most unfavorable tax classification available. Unlike capital gains, which receive preferential rates in many countries, miscellaneous income in Japan is added to your total income and taxed at progressive rates up to 55% (including local inhabitant tax).

Income Tax Rates in Japan

National income tax rates in Japan range from 5% to 45% progressively, plus a 10% local inhabitant tax, giving a combined maximum rate of 55%:

• Up to ¥1.95M: 5% national + 10% local = 15%
• ¥1.95M–¥3.3M: 10% + 10% = 20%
• ¥3.3M–¥6.95M: 20% + 10% = 30%
• ¥6.95M–¥9M: 23% + 10% = 33%
• ¥9M–¥18M: 33% + 10% = 43%
• ¥18M–¥40M: 40% + 10% = 50%
• Over ¥40M: 45% + 10% = 55%

What Counts as a Taxable Event in Japan

• Selling crypto for Japanese Yen (JPY)
• Trading one cryptocurrency for another
• Using crypto to purchase goods or services
• Receiving crypto as payment for work
• Staking rewards and mining income (taxable when received)
• Airdropped tokens with market value

Moving Average Cost Method

Japan requires the total average cost method (sōheikin-hō) for calculating cost basis. Every time you buy the same cryptocurrency, the new cost is averaged into the total. The NTA also permits the moving average method. FIFO is used as a practical default for most calculations. Specific ID is not permitted.

Annual Exemption

Miscellaneous income below ¥200,000 per year does not need to be reported for individuals with employment income (salary workers). Self-employed individuals must report all miscellaneous income regardless of amount. This exemption is not a deduction – it only applies to the filing obligation.

Filing the Kakutei Shinkoku

Report crypto income in the Kakutei Shinkoku (確定申告, final income tax return) filed with your local tax office. The filing period runs February 16 to March 15 for the prior tax year. Report crypto income in the "miscellaneous income" section with a calculation breakdown. Crypto tax software that supports Japanese tax rules and JPY conversion can greatly simplify this process.

Reform Efforts

Japan's crypto industry has lobbied for reclassification of crypto gains as capital gains (20% flat tax) rather than miscellaneous income. As of early 2026, no reform has been enacted, but proposals continue to be discussed by Japan's Financial Services Agency and LDP.

Disclaimer: This article is for general informational purposes only and does not constitute tax advice. For individual tax advice, consult a licensed tax professional.