Guide to Crypto Taxes in Japan for 2025

Japan treats digital assets as “miscellaneous income” rather than capital gains. That single choice drives every other rule: no preferential long-term rates, no annual exemption, and a need for meticulous record-keeping in yen.

Is cryptocurrency taxed in Japan?

Yes. Any disposal or reward can create taxable income. Disposals include selling for yen, swapping one coin for another, or spending tokens on goods or services. Rewards include mining proceeds, staking interest, airdrops, liquidity incentives, and salary paid in crypto.

Japan does not apply separate crypto rates. Instead, you add your crypto income to your salary, interest, and other earnings, then apply the national income-tax brackets for the 2024 year of assessment that you file in 2025:

• 5% on the first ¥1 ,950 ,000

• 10% on ¥1 ,950 ,001 to ¥3 ,300 ,000

• 20% on ¥3 ,300 ,001 to ¥6 ,950 ,000

• 23% on ¥6 ,950 ,001 to ¥9 ,000 ,000

• 33% on ¥9 ,000 ,001 to ¥18 ,000 ,000

• 40% on ¥18 ,000 ,001 to ¥40 ,000 ,000

• 45% on anything above ¥40 ,000 ,000

Add the flat 10% local inhabitant tax after you apply the national table.

Learn about crypto tax free countries.

Buying and holding cryptocurrency

Buying with yen is not taxed. Moving coins between wallets you own is also tax-free, but you must keep the transfer records.

Selling cryptocurrency

Selling for yen or spending on a purchase creates miscellaneous income equal to the difference between the sale proceeds and your acquisition cost in yen.

Mining and staking cryptocurrency

Rewards are ordinary income on the date you receive them, measured at their fair-market value in yen. When you later sell the coins, you compute a separate disposal using that value as cost basis.

Learn more about staking crypto.

Crypto-to-crypto trades taxed

Swapping BTC for ETH counts as disposing of BTC and acquiring ETH. Calculate the gain in yen on the BTC leg at the time of the swap.

Receiving cryptocurrency as payment

Salary, freelance fees, and promotional airdrops are employment or business income at full yen value on receipt, subject to withholding if paid through a Japanese employer.

Japan does not distinguish capital gains from other crypto income. Every gain is miscellaneous income unless you run a registered crypto business.

You may not use crypto losses to offset salary or interest income. You can offset miscellaneous gains in the same year, but unused losses cannot be carried forward.

Promotional airdrops are taxable income at the time you gain control of the tokens. If tokens arrive without you requesting them and have no clear market value, you may delay recognition until a reliable price exists, but you must document that decision.

Learn more about how crypto airdrops are taxed.

• Lending interest, yield-farming rewards, and liquidity incentives are ordinary income when credited.

• Depositing tokens into a liquidity pool is treated as a disposal of the original tokens and an acquisition of the pool token.

• Gas fees directly linked to a taxable transaction are deductible as acquisition or disposal costs.

Learn more in our DeFi tax guide.

Resident companies pay 23.2% corporation tax on profits up to ¥8 million and the same 23.2% rate on profits above that level. Local enterprise tax and inhabitant tax add roughly 10%. Inventory tokens must be measured consistently at cost or lower of cost and market.

Exchanges, custodians, and wallet providers must register with the Financial Services Agency under the Payment Services Act and follow strict anti-money-laundering rules. Stablecoin issuance is limited to licensed banks, trust companies, and money transmitters.

See our expert picks of the best crypto wallets.

Using crypto to pay for a purchase triggers a disposal for the payer and ordinary business income for the recipient. Consumption tax applies to the good or service, not to the crypto itself.

• Hold assets until a low-income year, when your marginal rate may be lower.

• Offset gains with losses in the same calendar year.

• Elect separate self-assessment if you qualify for the blue-return system and run a crypto business, which allows additional deductions.

• Hold crypto within a registered corporation if that structure reduces your overall tax burden.

• Buying crypto with yen.

• Moving tokens between personal wallets.

• Receiving unsolicited airdrops with no determinable value until a later taxable event arises.

Store the following for at least seven years: transaction date, token name, quantity, yen value, exchange fees, wallet addresses, and a description of each activity.

• Individual return and payment: typically March 15th

• Blue-return business owners must file by the same date to keep blue-return status.

• Corporations: two months after fiscal year-end, with an automatic one-month extension available if you file the request on time.

You need a complete yen-denominated ledger of every trade and reward, proof of exchange rates used, and invoices for any deductible expenses.

See our expert picks of the best crypto trading bots.

1. Aggregate every transaction in yen.

2. Separate business income from personal miscellaneous income if you run a crypto business.

3. Attach your ledger to the blue or white return as required.

4. File electronically through e-Tax or submit the paper forms at your local tax office.

5. Pay any balance by bank transfer, convenience-store payment slip, or credit card.

Log into the National Tax Agency e-Tax portal, report all crypto trading and reward income in Section 6 of Income Tax Return Form B, apply either the total-average or moving-average cost basis, and pay the assessed tax by March 15th.

Use our free crypto tax calculator.

Japan crypto tax FAQs

How is transferring crypto between different wallets taxed in Japan?

Transferring crypto between wallets you control is not taxed because ownership does not change, and you must keep records proving you own both wallets.

When do you need to report your crypto taxes?

You need to report crypto taxes every year by March 15th, even if your trades produced only losses.

Do I need to pay taxes on crypto gifts or donations?

Giving crypto away triggers income recognition on any gain for the donor, and the recipient may owe Japanese gift tax if the annual allowance is exceeded.

Are NFT sales and purchases taxable?

Buying an NFT sets its cost basis, and selling or trading it later is taxable miscellaneous income. If you create and sell NFTs as a business, the proceeds are business income.

Do I need to report crypto held in foreign exchanges?

Yes, residents must report worldwide crypto income, so trades on overseas exchanges must be converted to yen and included in your annual return.