# Crypto Tax in Japan: Miscellaneous Income Up to 55% — and the 20% Reform > Japan taxes crypto gains as miscellaneous income at progressive rates that can reach around 55%. A reform to a flat 20% is advancing but not yet law. Here is the current system and what may change. Source: https://thecryptotools.com/guides/crypto-taxes-japan/ · Updated: 2026-07-27 · Figures verified: 2026-07-27 · Reading time: 8 min > General information, not tax advice. Japan's crypto tax reform is in progress and not yet enacted; personal circumstances vary. Check nta.go.jp or a Japanese tax accountant (zeirishi) before you file. Japan has one of the heaviest crypto tax regimes in the developed world, and it comes down to how gains are classified. Rather than being a separate, flat-rated capital gain the way stock profits are, crypto gains are lumped into 'miscellaneous income' and stacked on top of your salary — pushing many holders into the highest tax brackets. A long-discussed reform would change this, but as of now the heavy system is still the law. ## Crypto gains are miscellaneous income (up to ~55%) Profits from crypto are treated as miscellaneous income (zatsu-shotoku). They are added to your other income and taxed at Japan's progressive national income tax rates of 5% to 45%, plus a flat 10% local inhabitant tax. At the top, that combination reaches roughly 55% — far above the flat 20% that applies to listed-stock gains. The more you earn overall, the higher the rate your crypto gains face, because they sit on top of everything else. > This is the core unfairness holders complain about: a stock trader pays a flat ~20%, while a crypto trader with the same gain can pay more than double, purely because of how crypto is classified. → Calculator: https://thecryptotools.com/tools/crypto-tax-calculator/ ## Every crypto-to-crypto trade is taxable Japan taxes not just cash-outs but crypto-to-crypto trades. Swapping BTC for ETH realises a gain or loss on the BTC at its yen value at the time of the trade. Spending crypto is likewise a taxable disposal. For active traders this means a long list of taxable events across the year, each needing a yen valuation — record-keeping is a real burden here. → Calculator: https://thecryptotools.com/tools/average-entry-calculator/ ## Limited loss relief Because crypto gains are miscellaneous income, losses get little relief. A crypto loss can generally only be offset against other miscellaneous income in the same year — not against your salary, and not against separately-taxed categories like stock gains. And miscellaneous-income losses cannot be carried forward to future years. A bad year gives you little to show for it at tax time, which compounds the sting of the high rates. → Calculator: https://thecryptotools.com/tools/profit-calculator/ ## Staking, mining and rewards Staking rewards, mining income, lending yield and airdrops are taxed as miscellaneous income at their yen value when received — at the same progressive rates. As everywhere, receiving is one taxable moment and the later disposal of those tokens is another, measured against the value already taxed as income. ## The proposed 20% reform Change is on the table. A bill to reclassify crypto as a financial instrument — aligning it with stocks and applying a flat 20% separate tax — has advanced through Japan's lower house, with a target of taking effect around 2026–2028. But it is not yet law: it still needs upper-house passage, government promulgation and Financial Services Agency rulemaking. And the relief would not be universal. - Only around 105 tokens listed on domestic-licensed exchanges (including BTC and ETH) are expected to qualify for the flat 20% rate. - Staking, lending and DeFi yields, NFTs, and trades on foreign or unregistered exchanges would remain miscellaneous income at rates up to ~55%. - The result would be a two-tier system — so the classification of exactly what you hold and where you trade it would determine your rate. ## Reporting and deadlines - The tax year is the calendar year. Crypto is reported in the annual final income tax return (kakutei shinkoku), filed between 16 February and 15 March. - There is a modest threshold below which salaried employees with small side income need not file, but crypto gains above it must be declared. - Keep detailed yen-valued records of every trade, reward and disposal — the miscellaneous-income treatment and per-trade taxation make this essential. ## The bottom line Under today's rules, Japan taxes crypto gains as miscellaneous income at up to around 55%, taxes every crypto-to-crypto trade, and gives losses almost no relief — a genuinely tough regime. A flat 20% reform is advancing and could transform the picture, but it is not yet enacted and would likely apply only to a limited set of listed tokens. Until it passes, file on the basis of the current system, and watch the reform closely if you hold meaningful gains. ## Frequently asked questions ### What is the crypto tax rate in Japan? Crypto gains are miscellaneous income, taxed at progressive national rates of 5%–45% plus a flat 10% local inhabitant tax — up to roughly 55% at the top. This is far higher than the flat ~20% on listed-stock gains. ### Are crypto-to-crypto trades taxable in Japan? Yes. Swapping one crypto for another is a taxable disposal at the yen value at the time of the trade, as is spending crypto. Active traders generate many taxable events across the year. ### Can I offset or carry forward crypto losses in Japan? Only narrowly. A crypto loss can generally offset other miscellaneous income in the same year, but not your salary or stock gains, and miscellaneous-income losses cannot be carried forward to future years. ### Is Japan cutting its crypto tax to 20%? A reform to reclassify crypto and apply a flat 20% rate has passed the lower house but is not yet law — it needs further approval and rulemaking. It would likely apply only to around 105 listed tokens, with staking, DeFi and foreign-exchange trades staying at up to ~55%. ### How are staking rewards taxed in Japan? As miscellaneous income at their yen value when received, at the same progressive rates up to ~55%. Selling the reward tokens later is a separate taxable disposal. ## Sources Every figure above was taken from the primary source below — the tax authority or the legislation itself, never a secondary summary. - [Income tax information for individuals](https://www.nta.go.jp/english/taxes/individual/index.htm) — National Tax Agency ## Related calculators - https://thecryptotools.com/tools/crypto-tax-calculator/ - https://thecryptotools.com/tools/average-entry-calculator/ - https://thecryptotools.com/tools/profit-calculator/