Japan Crypto Tax Guide for Foreign Residents (2026): What You Owe and How to File

At a Glance

Your situation	Tax rate on crypto gains
Salary ¥5M + crypto gains	Crypto taxed at ~33–43% (added on top of salary)
Salary ¥10M + crypto gains	Crypto taxed at ~43–55%
Non-permanent resident, gains on foreign exchanges (kept offshore)	May be 0% — see below
Salaried employee, total misc. income ≤ ¥200,000/year	May not need to file nationally
After 2028 (domestic exchanges only, if reform passes)	20.315% flat rate

The Tax Category: Miscellaneous Income (雑所得)

Japan classifies crypto gains as 雑所得 (miscellaneous income, zatsu shotoku), confirmed in NTA guidance No. 1524.

This classification has three important consequences:

Progressive rates up to 55%. Unlike stocks (which are taxed at a flat 20.315%), crypto gains are added on top of all other income before applying Japan's progressive income tax rates (5%–45% national + 10% local inhabitant tax). A person earning ¥8M in salary who makes ¥3M in crypto gains sees that ¥3M taxed at approximately 43–50%.
Losses cannot be offset against other income. Crypto losses do not reduce your salary tax. You can offset crypto losses against other miscellaneous income in the same year, but not against salary, freelance income, or stock gains.
No loss carryforward. Under current rules, if you lose ¥2M in crypto in 2025 and make ¥3M in 2026, you cannot apply the 2025 loss to reduce your 2026 tax. Each year stands alone. (This is expected to change under the 2028 reform — see below.)

The 2.1% reconstruction income surtax applies on top of national income tax. Local inhabitant tax (10% flat) is collected the following year after the annual filing.

What Is a Taxable Event?

These ARE taxable

Event	Tax treatment
Selling crypto for JPY	Gain = proceeds − acquisition cost
Trading crypto for other crypto (BTC → ETH)	Disposal of first coin at fair market value in JPY; any gain is taxable
Paying for goods or services with crypto	Disposal at fair market value; any gain over acquisition cost is taxable
Staking rewards	Income at market value in JPY when received
Mining rewards	Income at market value in JPY when received
Airdrops (with a determinable market price)	Income at market value in JPY when received
DeFi yield farming / liquidity rewards	Income at market value in JPY when credited
Depositing into a liquidity pool	Treated as a disposal of the original tokens
NFT sales	Miscellaneous income (casual seller); business income if trading commercially

Crypto-to-crypto trades are the most common surprise. When you trade BTC for ETH, you have disposed of your BTC at its current JPY value. The JPY gain on that disposal is taxable immediately — even if you never touch Japanese yen.

Source: NTA FAQ Ver. 9 — Kimura CPA summary

These are NOT taxable

Buying crypto with JPY
Transferring crypto between wallets you own
Hard forks — the received coin has an acquisition cost of ¥0 and is only taxed when later disposed of
Holding unrealized gains (Japan does not mark-to-market for individual crypto holders)

Calculating Your Gain: Cost Basis Methods

Japan does not use FIFO. Two methods are allowed:

総平均法 — Total Average Method (default)

If you make no election, this is the method that applies. It calculates one weighted average cost per coin type based on all purchases made during the entire calendar year, including purchases made after the sale in question.

This retroactive averaging can produce counterintuitive results and is generally less favorable than moving average for rising-price assets.

移動平均法 — Moving Average Method (requires election)

Recalculates your average cost after each new purchase, using only the holdings you have at the time of each transaction. Most traders prefer this as it reflects the actual sequence of purchases.

To elect this method: File the specified notification (仮想通貨の評価方法の届出書) with your tax office by March 15 of the year following your first crypto acquisition. Once elected, it applies going forward.

Transaction fees (gas fees, exchange fees): Include these in the acquisition cost. They increase your cost basis and reduce your taxable gain.

If you genuinely don't know your original acquisition cost: The NTA allows using 5% of the selling price as a substitute cost basis. This rarely works in your favor for assets that have appreciated significantly.

The Rules for Foreign Residents (The Part Most Guides Skip)

Japan's tax rules for foreign residents depend on your residency tier:

Non-permanent residents (非永住者) — your first 5 years in Japan

If you are a foreign national who has lived in Japan for 5 years or less within the preceding 10 years, you are a non-permanent resident. This is the most favorable tax category for foreign expats.

What is taxed:

All Japan-source income (including gains from selling crypto on Japanese exchanges such as Coincheck, Bitflyer, GMO Coin)
Foreign-source income only if it is paid in Japan OR remitted to Japan

The key benefit: If you sell crypto on Binance, Coinbase, or any other foreign exchange and keep the proceeds in a foreign bank account without transferring them to Japan, those gains are not subject to Japanese income tax.

Important caveats:

Using a foreign credit or debit card in Japan to pay for purchases may count as "remittance" and bring offshore gains into Japanese taxable income
Japan participates in the OECD's Crypto-Asset Reporting Framework (CARF), effective January 1, 2026 — the NTA receives automatic reports on transactions at Japanese exchanges involving non-residents and is expanding international data sharing with 70+ jurisdictions
If you later transfer funds from your foreign account to Japan, the previously unremitted gains become taxable

Source: TaxMatch Japan — Foreign Resident Crypto Guide; Nagashima Ohno & Tsunematsu — 2026 Reform Guide

Permanent residents (永住者) — 5+ years in Japan

If you have lived in Japan for more than 5 years within the preceding 10 years, you are a permanent resident for tax purposes (regardless of whether you hold an immigration permanent resident card).

All worldwide crypto gains are taxable in Japan — including gains from Binance, Coinbase, Kraken, DEXs, and any other foreign exchange. The exchange being foreign provides no special treatment.

What about crypto bought before you moved to Japan?

This is a genuine grey area with no official NTA guidance. The general principle is that your acquisition cost is the price you actually paid, converted to JPY at the exchange rate on the purchase date. This means if you bought BTC at ¥500,000 before moving and sell it for ¥5,000,000 after becoming a Japan resident, you could owe Japanese tax on the full ¥4,500,000 gain — even though most of it accrued before you had any Japan tax nexus.

This issue requires consultation with a Japanese 税理士 who specializes in crypto and international tax. There is currently no NTA-provided safe harbor.

How to File: Kakutei Shinkoku (確定申告)

When

February 16 – March 15 of the year following the tax year (January 1 – December 31). For example, 2025 gains must be declared by March 15, 2026.

Do you need to file?

Salaried employees: If your total miscellaneous income (crypto + all other misc.) is ¥200,000 or less for the year, you are generally not required to file a national income tax return. However, you still must file a local inhabitant tax return with your municipality.

This ¥200,000 threshold is net gain — total gains minus total acquisition costs, not gross proceeds.

Self-employed / freelancers: No threshold. All crypto income must be declared regardless of amount.

Which form

Use Form B (第二表), the version that covers all income types. Declare crypto gains in the 雑所得 — その他 (miscellaneous income — others) section.

Record-keeping

Japan requires a minimum 7-year retention of all transaction records — exchange statements, wallet transaction logs, receipts for purchases made with crypto. Without records, you cannot accurately calculate gains.

Calculation Tools

Manually calculating gains is extremely difficult if you have traded across multiple exchanges or made many transactions. These tools support Japan-specific methods:

Cryptact — Japan's largest crypto tax platform (~150,000 users). English interface available. Supports 41+ exchanges via API (Japanese and international). Calculates both total average and moving average methods.

Divly — International tool with strong Japan support. Good for foreign exchange users. Provides Annual Transaction Reports for platforms that don't connect directly.

Gtax — Professional-oriented, Japanese-language, suited for complex multi-exchange situations.

International options with Japan mode: Koinly, Coinpanda, CoinLedger — all support 500+ exchanges globally including major foreign platforms.

Limitation for non-permanent residents: None of the major tools natively calculate the remittance-basis split. If you are a non-permanent resident with gains on foreign exchanges, you will likely need to manually segregate taxable from non-taxable gains or work with a specialist 税理士.

NTA's free Excel tool (国税庁の仮想通貨計算書) is available but limited — does not support the moving average method and requires manual data entry.

The 2028 Reform: 20% Flat Rate Coming

A major tax reform bill passed Japan's Lower House and is pending final passage in the Upper House as of June 2026. If enacted:

From January 1, 2028:

Crypto traded on Japanese FSA-licensed exchanges qualifies for a 20.315% flat self-assessment rate (申告分離課税) — the same rate as stocks
Three-year loss carryforward becomes available for qualifying crypto losses

What does NOT qualify for the 20% rate:

Transactions on overseas exchanges (Binance, Coinbase, Kraken, DEXs) — these remain at progressive rates up to 55%, even after 2028
Speculative tokens that don't meet the qualifying "wealth-building asset" standard

Impact on foreign residents: If you primarily trade on domestic exchanges, the 2028 reform will significantly reduce your tax burden. If you trade primarily on overseas exchanges, rates stay the same. Permanent residents who split their activity between Japanese and foreign exchanges will face a two-tier tax situation from 2028.

Source: EY Japan Tax Alert; Nagashima law firm analysis

Exit Tax and Crypto: Currently Not Triggered

Japan's exit tax (国外転出時課税制度) currently does not apply to cryptocurrency. The exit tax targets securities as defined under the Financial Instruments and Exchange Act (FIEA). Crypto is regulated under the Payment Services Act — a different law — so it is outside the exit tax scope.

However, this is expected to change. The same 2028 reform that introduces the 20% rate also reclassifies qualifying crypto as FIEA financial products. This reclassification would bring crypto within the exit tax scope, potentially from around 2027.

Who exit tax would affect (if crypto is in scope): Foreign nationals who (1) hold ¥100M+ in qualifying crypto assets AND (2) have lived in Japan for more than 5 years within the preceding 10 years. Note: time spent on Table 1 visas (work visas, business manager, etc.) does NOT count toward this 5-year threshold. Only time on Table 2 visas (permanent resident, spouse of Japanese national, long-term resident) and as a Japanese national counts.

Practical implication: If you are a long-term foreign resident with large unrealized crypto gains and you are considering leaving Japan in the next few years, monitor this legislation closely. Consult a specialist before the final bill passes.

Source: Mondepal International Tax — Crypto Exit Tax Analysis

FAQ

Q1. I traded BTC for ETH on Coinbase last year and didn't convert to JPY. Do I owe Japanese tax? If you are a permanent resident (more than 5 years in Japan), yes — the crypto-to-crypto trade is a disposal event. The JPY value of your BTC at the time of the trade is the proceeds; your acquisition cost is subtracted; the gain is miscellaneous income.

If you are a non-permanent resident (5 years or less in Japan) and the Coinbase account is offshore with proceeds remaining offshore, you may not owe Japanese tax — but document everything carefully and consult a specialist.

Q2. My total crypto gain for the year is ¥150,000. I also earn a salary. Do I need to file? Miscellaneous income of ¥150,000 is below the ¥200,000 salaried-employee threshold, so you are not required to file a national return. However, you should still file a local inhabitant tax return. Keep your transaction records in case you are queried.

Q3. I received staking rewards in ETH. When do I pay tax on them — when I receive them or when I sell? When you receive them. Staking rewards are taxable as miscellaneous income at the JPY market value of the received ETH at the moment of receipt. When you later sell that ETH, you calculate gain using that receipt-date value as your acquisition cost.

Q4. I use Binance. Will the NTA know about my trades? Japan's CARF reporting system (effective January 2026) enables the NTA to receive automatic transaction reports from foreign crypto exchanges — including Binance, which operates in jurisdictions participating in the OECD framework. Japan has information exchange agreements with 70+ countries. Assuming foreign exchange activity is invisible to the NTA is increasingly risky.

Q5. Should I use the total average or moving average cost basis method? For most traders in a market where prices trend upward over time, the moving average method is generally more favorable — it does not retroactively average in later purchases made at higher prices. However, if you trade heavily with many small purchases, the total average may simplify record-keeping. Elect the moving average method by filing the notification with your tax office by March 15 of the year after your first crypto purchase.

Last updated: 2026-06-16

Japan Crypto Tax Guide for Foreign Residents (2026): What You Owe and How to File

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