Guide to Crypto Taxes in Japan for 2026

Yes. Any disposal or reward is taxed. Disposals include:

• selling for yen

• swapping coins

• paying with tokens

Rewards include

• crypto mining

• staking

• liquidity incentives

• airdrops

• salary paid in crypto

Crypto income is added to your other income and taxed at the national brackets for the 2024 tax year (filed in 2025):

• 5% on the first ¥1,950,000

• 10% on ¥1,950,001–¥3,300,000

• 20% on ¥3,300,001–¥6,950,000

• 23% on ¥6,950,001–¥9,000,000

• 33% on ¥9,000,001–¥18,000,000

• 40% on ¥18,000,001–¥40,000,000

• 45% on anything above ¥40,000,000

Add a uniform 10% local inhabitant tax after applying the national table.

Buying and holding cryptocurrency

No tax when you purchase with yen or transfer between wallets you own.

Selling cryptocurrency

Selling for yen or spending tokens creates miscellaneous income equal to yen proceeds minus yen cost.

Mining and staking cryptocurrency

Crypto mining proceeds are ordinary income at fair‑market yen value on receipt. A later sale is a separate disposal using that value as cost basis.

Crypto‑to‑crypto trades

Swapping BTC for ETH disposes of BTC and acquires ETH. Calculate the BTC gain in yen at the time of the swap.

Receiving cryptocurrency as payment

Employment or business income at full yen value on receipt, subject to withholding if paid by a Japanese employer.

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

Yes. Domestic exchanges report KYC data, and the NTA cooperates with foreign platforms under tax treaties. Large transfers of crypto assets are also flagged under the Act on Prevention of Transfer of Criminal Proceeds.

The NTA classifies most individual crypto activity as miscellaneous income. Businesses follow corporate rules, and blue‑return sole proprietors can claim broader deductions.

Losses can only offset other miscellaneous gains in the same year. Unused losses do not carry forward and cannot offset salary or interest income.

Promotional crypto airdrops are taxable at market value on control. If no reliable price exists at receipt, recognition may be deferred until a price is available, but you must keep documentation.

• DeFi interest, yield farming, and liquidity rewards are ordinary income when credited.

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

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

Resident companies pay 23.2% corporation tax on all profits. Local enterprise and inhabitant levies add roughly 10%. Inventory tokens must be measured at cost or lower of cost and market consistently.

Exchanges, custodians, and wallet providers must register with the Financial Services Agency under the Payment Services Act and follow strict AML and travel‑rule standards. Only licensed banks, trust companies, and money transmitters may issue stablecoins.

Paying with crypto triggers a disposal for the payer and ordinary business income for the recipient. Consumption tax applies to the underlying good or service, not the crypto itself.

• Hold assets until a low‑income year to reduce your marginal rate.

• Offset gains with losses inside the same calendar year.

• Elect blue‑return status for a crypto business to claim extra deductions.

• Operate through a corporation if that lowers your effective rate.

• Buying crypto with yen.

• Moving tokens between wallets you control.

• Receiving unsolicited airdrops that have no determinable market value until a later taxable event.

Keep for at least seven years: date, token, quantity, yen value, exchange fees, wallet addresses, and a brief description of each activity.

• March 15th – statutory due date for individual income-tax returns and payment; if March 15th falls on a weekend or national holiday, the deadline is extended to the next business day.

• Blue‑return – business owners must file by the same adjusted date to retain blue‑return status.

• Corporations – return due two months after fiscal year‑end; an automatic one‑month extension is available if the request is submitted before the original deadline.

A complete yen‑denominated ledger, proof of exchange rates, and invoices for any deductible expenses.

Use the e‑Tax portal or paper forms at your local tax office. Report crypto totals in the miscellaneous income section, attach your detailed ledger, and pay the balance via bank transfer, convenience store, or credit card.

Convert every transaction to yen on the date it occurs, choose either the moving‑average or total‑average cost method, aggregate gains and rewards, apply the national brackets plus 10% inhabitant tax, and submit payment by March 15th. Our free crypto tax calculator automates the conversions and cost basis.