Guide to Crypto Taxes in Japan for 2026

This guide covers Japanese tax law and guidance from the National Tax Agency (NTA). It is for informational purposes only and is not tax advice. If you are unsure how the rules apply to your situation, speak with a Japanese tax accountant, or zeirishi.

Yes. Japan taxes both crypto disposals and crypto received as income.

A disposal includes:

• selling crypto for yen

• swapping one crypto asset for another

• using crypto to pay for goods or services

Crypto received through the following activities may also be taxable:

• mining

• staking

• liquidity incentives

• airdrops

• salary or other compensation paid in crypto

Under the current system, most individual crypto income is added to your other taxable income and taxed at Japan's progressive national income tax rates. The brackets are unchanged for 2025 and 2026 income:

• 5% on taxable income up to ¥1,949,000

• 10% from ¥1,950,000 to ¥3,299,000

• 20% from ¥3,300,000 to ¥6,949,000

• 23% from ¥6,950,000 to ¥8,999,000

• 33% from ¥9,000,000 to ¥17,999,000

• 40% from ¥18,000,000 to ¥39,999,000

• 45% on ¥40,000,000 or more

A 10% local inhabitant tax generally applies in addition to the national tax. For 2026 income, the reconstruction special income tax also adds 2.1% of your national income tax.

At the top bracket, the combined rate works out to roughly 55.9%.

How different crypto transactions are taxed in Japan

Buying and holding cryptocurrency

Buying crypto with yen does not create a taxable event. Neither does moving crypto between wallets you own.

Individuals also are not taxed on unrealized gains simply because the value of their crypto rises before year-end.

Selling cryptocurrency

Selling crypto for yen creates taxable income equal to the yen value you receive minus your yen-denominated cost.

Using crypto to make a purchase is also a disposal.

Mining and staking cryptocurrency

Mining and staking rewards are generally miscellaneous income based on their yen market value when you receive them.

If your mining or staking activity rises to the level of a business, the income may instead be treated as business income.

When you later sell the crypto, that sale is a separate transaction. The value previously recognized when you received the crypto becomes part of its cost basis.

Crypto-to-crypto trades

Swapping one crypto asset for another is taxable.

If you trade BTC for ETH, for example, you dispose of the BTC and acquire ETH. Calculate the BTC gain or loss in yen at the time of the trade.

Receiving cryptocurrency as payment

Crypto received as salary or business compensation is valued in yen when you receive it.

Employment income may also be subject to withholding when a Japanese employer pays compensation in crypto.

Not under the current system.

The NTA generally treats gains from selling or using crypto as miscellaneous income rather than capital gains. Crypto activity connected to a business may instead produce business income.

Holding crypto for several years does not currently qualify you for a lower long-term capital gains rate.

Japan's new 20% crypto tax regime

Japan enacted a major crypto tax reform in 2026 that creates separate taxation for certain "specified crypto assets" sold through registered Japanese crypto businesses.

The new rate is 20%, consisting of 15% national income tax and 5% local inhabitant tax. Including the reconstruction surtax, the effective rate is 20.315%. Qualifying net losses on specified crypto assets will also be eligible for a three-year carryforward against later gains in the same category.

The new treatment does not apply to every crypto transaction. It covers specified crypto assets under the new regulatory framework. Transactions through overseas exchanges, decentralized exchanges, or private wallets remain subject to the existing progressive system.

Timing also matters. The new tax rate applies to sales made on or after January 1 of the year after the amended Financial Instruments and Exchange Act, or FIEA, takes effect.

The Diet passed the FIEA amendment in July 2026, but the Cabinet has not yet set its effective date. If the relevant provisions take effect during 2027, the 20% tax regime would begin January 1, 2028.

Until then, the existing miscellaneous income rules continue to apply.

Yes. Japanese crypto exchanges maintain customer and transaction records, and the country's crypto reporting network expanded further in 2026 with the introduction of the OECD Crypto-Asset Reporting Framework, or CARF.

Beginning January 1, 2026, customers of covered Japanese crypto exchanges must provide information about their tax residence. Anyone who already held an account on December 31, 2025, has until December 31, 2026, to provide the required declaration.

Starting in 2027, exchanges begin reporting covered transactions involving non-residents to the NTA. Japan will also receive information about Japanese residents with reportable crypto accounts in other CARF jurisdictions.

Certain large crypto transfers may also be flagged under Japan's anti-money laundering rules. Using a foreign exchange therefore does not necessarily keep your crypto activity outside tax-authority reporting.

The NTA generally classifies individual crypto gains as miscellaneous income. Businesses follow different rules, and qualifying sole proprietors using blue-return status may have access to broader deductions.

For more detail, see the NTA's crypto FAQ in Japanese.

Under the current system, crypto losses generally offset other miscellaneous income earned during the same year. They cannot be used to offset salary or interest income, and unused losses generally cannot be carried into future years.

That will change for transactions covered by the new 20% regime. Once it takes effect, qualifying net losses on specified crypto assets may be carried forward for up to three years and applied against later gains in the same category.

The NTA has not published a specific rule covering every type of crypto airdrop.

It does state that crypto acquired through activities such as mining, staking, and lending is treated as income at its market value when acquired.

An airdrop with no established market price when you receive it is less straightforward. Keep records showing the announcement, receipt date, token quantity, and any later pricing information.

For unusual or high-value airdrops, confirm the treatment with a zeirishi.

DeFi taxation depends on what happens in the transaction.

Interest, yield-farming rewards, and liquidity incentives may generate miscellaneous income when credited or received.

Liquidity-pool deposits are less settled. The NTA has not issued a broad rule saying that every deposit into a liquidity pool is taxable. When you deposit tokens and receive a different pool token in return, however, the general rule for crypto-to-crypto exchanges may point toward treating the transaction as a disposal.

The correct treatment may depend on the protocol's structure, so complex liquidity positions are worth reviewing with a zeirishi.

Gas fees directly tied to a taxable acquisition or disposal may be included in the relevant acquisition or disposal costs.

Companies follow Japan's corporate tax rules rather than the individual miscellaneous-income framework.

Resident companies generally pay national corporation tax at 23.2%. Most smaller companies may qualify for a 15% rate on their first ¥8 million of taxable income. Local enterprise and inhabitant taxes apply in addition.

For fiscal years beginning on or after April 1, 2026, the new defense special corporate tax adds 4% of the corporation tax amount above ¥5 million. Corporate crypto holdings also follow different valuation rules from those that apply to individuals.

Crypto with an active market that remains on a company's balance sheet at fiscal year-end is generally valued at market price. The resulting unrealized gain or loss is included in taxable income for that year, with the valuation reversing at the beginning of the following year.

Exceptions exist for certain transfer-restricted and self-issued tokens.

Crypto businesses in Japan operate under a strict regulatory framework. Exchanges, custodians, and certain wallet providers must register with the Financial Services Agency and comply with anti-money laundering and travel-rule requirements.

Only qualifying banks, trust companies, and money transmitters may issue regulated stablecoins. Japan's regulatory system is also changing. In July 2026, the Diet passed legislation moving crypto regulation into the Financial Instruments and Exchange Act, the same framework used for securities such as stocks and bonds.

Among other changes, the amended law adds insider-trading rules for crypto. The crypto provisions take effect on a date to be set by the Cabinet.

Using crypto to pay for something creates a disposal for the person spending it.

The recipient generally recognizes business or other applicable income based on the yen value received.

Consumption tax applies to the underlying taxable good or service rather than to the crypto itself.

There are several legitimate ways to manage your crypto tax bill under the current rules.

• Consider realizing gains in a year when your other taxable income is lower.

• Use qualifying crypto losses to offset miscellaneous crypto gains during the same calendar year.

• If you operate a genuine crypto business, blue-return status may provide access to additional deductions.

• A corporate structure may produce a different effective tax result, although it also creates additional compliance costs and tax rules.

Tax planning should reflect your overall income and circumstances rather than a single crypto transaction.

Common crypto activities that do not create an immediate tax bill include:

• buying crypto with yen

• transferring crypto between wallets you own

The NTA has not published a specific timing or valuation rule for every type of airdrop received without an established market price, so airdrops are not included here as automatically tax-free.

Keep a complete yen-denominated record of your crypto activity.

Useful records include:

• transaction dates

• token names

• quantities

• yen values

• exchange and network fees

• wallet addresses

• exchange statements

• a short description of each transaction

Keep relevant tax records for at least seven years when required.

For individuals required to file an income tax return, March 15 is generally the statutory filing and payment deadline.

If March 15 falls on a weekend or national holiday, the deadline moves to the next business day. That pushed the deadline to March 16 in 2026. For 2026 income, the deadline is March 15, 2027.

Business owners using blue-return status generally file by the same individual income tax deadline. Corporations generally file within two months after the end of their fiscal year.

A company that cannot hold its annual shareholders' meeting within that period because of its articles of incorporation or other qualifying circumstances may apply for a filing extension. The application must be submitted by the final day of the business year to which it applies.

Maintain a complete ledger showing each transaction in yen.

You should also retain evidence supporting the exchange rates you used, exchange records, wallet histories, and invoices or receipts for deductible expenses.

Good records become especially important when you use several exchanges, move crypto between wallets, or participate in DeFi.

You can file through Japan's e-Tax system or submit the required forms to your local tax office.

Under the current system, most individual crypto income is reported in the miscellaneous income portion of the return.

Any remaining tax can be paid using one of the payment methods accepted by the NTA, including bank and electronic payment options.

Start by converting each taxable transaction into yen based on its value when the transaction occurred.

For individuals, the total-average method is generally the default cost calculation method. You may elect the moving-average method by submitting the required notification to your tax office.

Then:

• Calculate the yen value and cost of each taxable transaction.

• Separate crypto received as income from later disposals.

• Total your taxable crypto gains, losses, and rewards.

• Combine the applicable miscellaneous income with your other taxable income.

• Apply the national income tax brackets, local inhabitant tax, and reconstruction special income tax.

• File and pay any amount due by the applicable deadline.

You can also estimate your gains with our free crypto tax calculator.