Crypto tax in Japan for foreign residents: how gains are taxed

Crypto tax in Japan for a foreigner works like this: profit is taxed as miscellaneous income (雑所得, zatsu-shotoku). As of October 2026, the National Tax Agency (国税庁, NTA) says gains from selling or using crypto assets are generally added to your other income and taxed at progressive income tax rates of 5% to 45%, plus resident tax. Swapping one coin for another counts as a sale, and losses can’t offset your salary. Your resident or non-resident status matters most.

Are you a resident?

The NTA’s test is residency, not nationality or visa type. A resident (居住者) has an address in Japan or has lived here continuously for at least a year. Residents are taxed on income wherever it arises. A non-resident is taxed only on Japan-source income. See Japan tax residency for foreigners.

The NTA’s crypto FAQ gives a non-resident example: someone who lives in the US and sells crypto held at a Japanese exchange does not have to file in Japan, and nothing is withheld. If you are a resident, your gains count even if the coins sit at an overseas exchange. Whether a non-permanent resident’s overseas crypto gains count only when remitted isn’t confirmed in the sources used here, so ask a tax accountant.

What counts as a taxable event

The NTA FAQ (revised December 2025, based on law as of 1 December 2025) says:

• Selling crypto for yen or another currency.
• Swapping crypto A for crypto B. This is treated as selling A. In the NTA’s example, 1 BTC bought at ¥1,000,000 each and used to buy 40 XRP worth ¥1,200,000 gives a ¥200,000 gain, before costs.
• Paying for goods with crypto is calculated the same way as a swap.

Buying crypto with yen is not taxed by itself. Timing: normally the year the crypto is delivered, though you can choose the year of the contract.

How the gain is calculated

Gain = proceeds minus the cost of the crypto you sold minus direct costs, such as trading fees. Costs for internet lines or a PC count only for the part directly needed and clearly separable. A PC lasting over a year is depreciated.

Cost basis uses the total average method (総平均法) or the moving average method (移動平均法). If you don’t choose, individuals default to total average. The NTA provides calculation sheets for both, and says to use the total average sheet if you rely on your exchange’s annual transaction report.

Rates

The gain is added to your other income, then taxed at the national bracket rates:

Resident tax is added by your city. See resident tax. Bracket figures come from the NTA’s rate table.

Losses and special cases

• Losses in miscellaneous income can’t be deducted from salary or other income.
• Margin trading in crypto is not eligible for the separate-taxation treatment that FX gets; it is comprehensively taxed.
• Over ¥3 million of crypto proceeds in a year changes the category: generally business income if you keep books, otherwise business-related miscellaneous income.