How crypto tax works in Japan
The National Tax Agency treats crypto gains as miscellaneous income, so disposals, swaps, and spends stack onto total income and face progressive national rates of 5% to 45% plus a flat 10% inhabitant tax.
Losses generally offset only within miscellaneous income and do not carry into salary or business income, while staking, lending, mining, and airdrop receipts are income at market value on receipt.
Companies holding crypto generally mark actively traded tokens to market at year-end, and long-standing reform debate about 20% separate taxation has not become law.
Crypto tax brackets in Japan
| Bracket | Rate | Notes |
|---|---|---|
| National income tax entry | 5% | Lowest national band |
| National income tax top | 45% | Highest national band |
| Inhabitant tax flat | 10% | Local surcharge |
| Combined maximum burden | 55% | National plus local |
| Listed-share separate rate | 20.315% | Not available for crypto |
Tax rates at a glance
- National income scale
- 5% - 45%
- Inhabitant tax
- 10%
- Combined top rate
- 55%
- Listed shares comparison
- 20.315%
- Corporate mark to market
- Annual
- Loss carryover
- Restricted
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
Long-term holdersExpatsRemote workersFoundersCorporate treasuries
Watch out for
- Crypto gains stack on top of salary and other income, so a bonus year plus a disposal year can push the same coins into a far higher marginal band.
- Losses stranded inside miscellaneous income cannot shelter employment income, which makes leveraged blow-ups permanently more expensive than equity losses.
- Reform proposals for 20% separate self-assessed taxation resurface regularly without enactment, so files should plan on current law rather than hoped law.
- Exit taxation and inheritance valuation at up to 55% scales mean large holders need residence and succession planning alongside trading records.
Frequently asked questions
How is crypto taxed in Japan?
As miscellaneous income at progressive national rates of 5% to 45% plus 10% inhabitant tax, up to 55% combined. Crypto does not qualify for the 20.315% listed-share rate.
Can crypto losses offset salary in Japan?
Generally no. Losses stay inside miscellaneous income with restricted carryover and cannot shelter employment or business income.
Will Japan cut crypto tax to 20%?
Industry and political proposals for separate 20% taxation exist but have not become law. Until legislation passes, progressive miscellaneous-income treatment applies.