2026 Japan Crypto Tax Guide: Calculation Methods & Tax Rates Explained | Denpyo

Disclaimer: This article provides general information only and does not constitute tax or legal advice. Please consult a qualified tax professional (zeirishi) for advice specific to your situation. Information is based on official National Tax Agency (NTA) sources and current as of January 2026.

Disclosure: This article is published by Denpyo, a receipt and expense management service. Some tools and services mentioned include Denpyo products.

Introduction: Cryptocurrency Tax Filing in Japan — No Longer Optional

"I made profits trading crypto, but do I really need to file taxes?"
"The calculation method seems impossibly complicated..."

If you're a foreigner living in Japan and investing in cryptocurrency, these concerns are completely valid. As we enter the 2026 tax filing season, the tax implications of holding or trading crypto assets are something you simply cannot ignore.

Key Facts You Need to Know:

• Cryptocurrency profits are taxed as miscellaneous income (zatsu shotoku) — with rates reaching up to 55%

• Salary earners must file a tax return if annual crypto profits exceed 200,000 yen

• Japanese exchanges report transaction data to tax authorities, so unreported income will be discovered

• The 2026 tax reform discussions include a proposal for separate taxation (similar to stocks at ~20%)

What You'll Learn in This Guide:

• Who needs to file (and who doesn't)

• How to calculate your crypto profits (Moving Average vs. Total Average methods)

• How to use the NTA's official calculation spreadsheets

• Step-by-step e-Tax filing instructions

• Common mistakes and how to avoid them

1. Who Needs to File Cryptocurrency Taxes

1.1 When Tax Filing Is Required

Source: NTA Cryptocurrency Tax Treatment

1.2 When Tax Filing Is NOT Required

You don't need to file if:

• You only purchased cryptocurrency (haven't sold or used it)

• You're only holding cryptocurrency (no realized gains)

• You're a salary earner and your miscellaneous income (including crypto) is 200,000 yen or less

Important Warning: Even if your income is below 200,000 yen and you don't need to file income tax, you still must file residence tax (juumin-zei) with your municipal office.

1.3 Taxable Events: When Profits Are Realized

This is where many crypto investors get caught off guard. Trading Bitcoin for Ethereum is a taxable event — you're essentially selling BTC and buying ETH, which triggers a capital gain (or loss) calculation.

2. Cryptocurrency Tax Rates in Japan

2.1 Aggregate Taxation as Miscellaneous Income

Cryptocurrency profits in Japan are classified as "miscellaneous income" (zatsu shotoku) and subject to aggregate taxation (sougou kazei).

This is fundamentally different from stock investments, which benefit from separate taxation (bunri kazei) at a flat rate of approximately 20%. With crypto, your profits are added to your other income (salary, business income, etc.), and then progressive tax rates apply to the total.

For high earners, this can result in crypto profits being taxed at your marginal rate — potentially much higher than the 20% applied to stock gains.

2.2 Tax Rate Table

Note: A reconstruction special income tax (2.1% of income tax) also applies separately.

Practical Example:

• Salary income: 5 million yen + Crypto profit: 2 million yen = Total taxable income: 7 million yen

• The 7 million yen falls into the 23% income tax bracket

• Tax on the 2 million yen crypto profit: approximately 660,000 yen (effective rate around 33%)

This is why many Japanese crypto investors eagerly await tax reform — the current system can result in paying over half your crypto gains in taxes if you have significant other income.

2.3 2026 Tax Reform: Will Crypto Get Stock-Like Treatment?

The Financial Services Agency has formally requested that the 2026 tax reform change cryptocurrency taxation to separate taxation at approximately 20% — the same treatment as stock investments.

Current Status: This remains a proposal. The request will be reviewed as part of the December 2025 tax reform outline and debated in the 2026 ordinary session of the Diet.

If passed, this would be a major win for crypto investors in Japan. However, don't count on it for your 2025 income year filing — plan based on current rules.

3. How to Calculate Your Crypto Profits

3.1 The Basic Formula

Profit (Income) = Sale Price - Acquisition Cost

The challenge? Determining your acquisition cost when you've made multiple purchases at different prices over time.

Japan's NTA recognizes two methods for calculating acquisition cost:

1. Moving Average Method (Idou Heikin Hou) — Recalculates your average cost after each purchase
2. Total Average Method (Sou Heikin Hou) — Calculates one average based on all purchases for the entire year

3.2 Moving Average Method: Example Calculation

Calculation:

• Average acquisition cost = (5,000,000 + 6,000,000) / 2 = 5,500,000 yen/BTC

• Sale profit = 7,000,000 - 5,500,000 = 1,500,000 yen

With the moving average method, your average cost updates each time you make a purchase.

3.3 Total Average Method: Example Calculation

The total average method calculates your average cost across the entire year:

Calculation:

• Total annual purchases = 10,000,000 + 5,500,000 + 4,500,000 = 20,000,000 yen

• Total quantity purchased = 2 + 1 + 1 = 4 BTC

• Average price = 20,000,000 / 4 = 5,000,000 yen/BTC

• Sale profit = 14,000,000 - (5,000,000 x 2) = 4,000,000 yen

3.4 Which Method Should You Choose?

Important: Once you choose a method, you must generally continue using it consistently. Switching methods requires justification and isn't done casually.

Pro Tip: If you use a Japanese exchange that provides annual transaction reports (most major ones do), the Total Average Method is often simpler because their reports are designed for this calculation.

Source: NTA Cryptocurrency Calculation Forms

4. Using the NTA's Official Calculation Spreadsheets

4.1 Types of Calculation Forms

The NTA provides Excel spreadsheets to help you calculate crypto profits:

1. Cryptocurrency Calculation Form (Moving Average Method) — For those using moving average
2. Cryptocurrency Calculation Form (Total Average Method) — For those using total average

Download here: NTA Cryptocurrency Calculation Forms

The forms are in Japanese, but the structure is straightforward once you understand the fields.

4.2 Information You'll Need to Enter

• Type of cryptocurrency — Bitcoin, Ethereum, etc.

• Transaction date — When the trade occurred

• Transaction type — Buy, sell, exchange, etc.

• Quantity — How much crypto involved

• Amount in yen — Transaction value converted to Japanese yen

4.3 Leveraging Exchange Annual Reports

Major Japanese exchanges like bitFlyer, Coincheck, and GMO Coin issue annual transaction reports (nenkan torihiki houkokusho).

If your exchange provides this report, use the Total Average Method calculation form — the reports are structured for this approach.

Tip: Download your annual reports early in January before the filing rush. Some exchanges experience slow download times during peak tax season.

5. Filing via e-Tax: Step-by-Step Guide

5.1 Preparation

1. Gather Required Documents:

• Exchange annual transaction reports

• Withholding slip (gensen choushuu-hyou) from your employer (if salary earner)

• My Number Card (mainambaa kaado)

2. Complete Your Profit/Loss Calculation:

• Use the NTA calculation spreadsheets, or

• Use a third-party crypto tax calculation tool (see Section 8)

5.2 Creating Your Tax Return

Step 1: Access the NTA Tax Return Preparation Corner

Step 2: Click "Start Preparation" (sakusei kaishi) and select "e-Tax"

Step 3: Enter your income information

Step 4: Select "Miscellaneous Income (Other)" (zatsu shotoku - sono ta)

Step 5: Enter your cryptocurrency income:

• Category: Select "Cryptocurrency" (angou shisan)

• Revenue: Your total sales amount for the year

• Expenses: Acquisition cost + trading fees

Step 6: Enter deductions and verify your calculated tax amount

Step 7: Apply your electronic signature and submit

Source: NTA Tax Return Preparation Corner

6. Filing Tips by Transaction Type

6.1 NFT Trading

Profits from selling NFTs are taxed as miscellaneous income, just like other cryptocurrency.

Calculation:

Profit = NFT Sale Price - NFT Purchase Price - Gas Fees

Don't forget to include gas fees paid in ETH — these are deductible expenses.

6.2 Staking Rewards

Staking rewards are recognized as income at the time you receive them — not when you sell.

Acquisition Cost = Market value at the time of receipt

This means if you receive 0.1 ETH in staking rewards when ETH is trading at 500,000 yen, you have 50,000 yen of income — even if you never sell those rewards.

6.3 Airdrops

Cryptocurrency received via airdrops is taxable at the market value when received.

Acquisition Cost = Market value at time of receipt (may be 0 yen if the token has no established market)

If an airdropped token has no market value at receipt, your acquisition cost is effectively zero — meaning 100% of your eventual sale proceeds would be profit.

6.4 DeFi (Decentralized Finance)

DeFi can get complex because transactions often involve multiple taxable events. Consider using a specialized crypto tax tool if you're active in DeFi.

6.5 Using Multiple Exchanges

Even if you trade on multiple exchanges, you must aggregate all transactions for your profit/loss calculation.

Example:

• Exchange A: 300,000 yen profit

• Exchange B: 100,000 yen loss

• Net result: 300,000 - 100,000 = 200,000 yen taxable income

You can offset losses against gains across exchanges within the same tax year. However, you cannot offset crypto losses against other types of income (like salary).

7. Common Mistakes and How to Avoid Them

Mistake 1: Not Reporting Crypto-to-Crypto Exchanges

Wrong thinking: "I just swapped BTC for ETH — I didn't cash out to yen, so no tax, right?"

Reality: Exchanging one cryptocurrency for another is a taxable event. Profit is realized at the moment of exchange based on the yen value.

Mistake 2: Not Tracking Your Acquisition Cost

Problem: You bought Bitcoin at various prices over three years and have no idea what your average cost is.

Solution: Download your complete transaction history from every exchange you've used. Use crypto tax calculation tools to reconstruct your cost basis.

Mistake 3: Forgetting to Deduct Gas Fees

Gas fees (transaction fees) are deductible expenses. Many people forget to include them, paying more tax than necessary.

Keep records of gas fees paid — they add up, especially if you're active in DeFi or NFT trading.

Mistake 4: Mishandling Year-End Transactions

Scenario: You bought crypto in December 2025 and sold in January 2026.

Correct treatment:

• 2025 tax filing: Purchase only (no tax — you're just acquiring an asset)

• 2026 tax filing: Report the sale profit

The taxable event occurs in the year you sell, not the year you buy.

8. Crypto Tax Calculation Tools

If you have numerous transactions, manual calculation becomes impractical. Consider using a specialized crypto tax tool.

Popular Tools in Japan:

• Cryptact — Japan's largest crypto tax platform; supports many exchanges and DeFi protocols

• Gtax — Simple and user-friendly interface

• Keiry — Offers a free plan for basic use

How They Work:

1. Upload CSV files from your exchanges
2. The tool automatically calculates your profits using your chosen method
3. Export results for your tax filing

These tools can save hours of work and reduce calculation errors — especially valuable if you trade frequently or use multiple exchanges.

9. Frequently Asked Questions (FAQ)

Q1: Can I carry forward cryptocurrency losses to next year?

A: Unfortunately, no. Losses from miscellaneous income (including crypto) cannot be offset against other income types, nor can they be carried forward to future years. This is different from stock investments, where losses can be carried forward for three years.

This is one reason why the current crypto tax treatment is considered unfavorable compared to stocks.

Q2: Do I need to report profits from overseas exchanges?

A: Yes, absolutely. Japanese tax residents are taxed on worldwide income. Profits from Binance, Coinbase, or any other overseas exchange must be reported just like domestic exchange profits.

Using an overseas exchange doesn't exempt you from Japanese taxes.

Q3: What if I lost my transaction history?

A: Contact your exchange to request historical data. Most exchanges retain records for several years. You can also use blockchain explorers to verify on-chain transactions if needed.

Start gathering your records now — don't wait until tax season.

Q4: What if I inherited cryptocurrency?

A: Inherited crypto is treated as acquired at the market value on the date of inheritance. When you eventually sell, your acquisition cost for profit calculation is that inheritance-date value.

Note: Inheritance tax is a separate issue and may also apply depending on the value inherited.

Q5: Will unreported crypto income be discovered?

A: Very likely, yes. Japanese exchanges are required to submit payment records (shiharai chousho) to tax authorities. The NTA can match this data against filed tax returns to identify non-filers.

Penalties for non-filing include:

• Delinquency tax (entai-zei) — interest on unpaid taxes

• Non-filing penalty tax (musinkoku kasanzei) — up to 20% of unpaid tax

• Heavy additional tax (juu kasanzei) — up to 40% in cases of willful evasion

It's not worth the risk. Report your crypto income accurately.

Summary

Let's recap the essential points for filing cryptocurrency taxes in Japan.

5 Key Takeaways:

1. Filing required when profits exceed 200,000 yen — For salary earners (480,000 yen for self-employed)
2. Tax rates can reach 55% — Crypto is taxed as miscellaneous income with progressive rates
3. Crypto-to-crypto exchanges are taxable — Swapping BTC for ETH triggers a taxable event
4. Exchanges report to tax authorities — Non-filing is high-risk and likely to be discovered
5. Use calculation tools for many transactions — Manual calculation is error-prone for active traders

2026 Tax Filing Deadline: March 16 (Monday)

Start preparing now. Gather your exchange reports, calculate your profits, and file on time.

Useful Links

• NTA Tax Return Preparation Corner — Official e-Tax filing portal

• NTA Cryptocurrency Tax Information — Official guidance and calculation forms

• Start Expense Management with Denpyo — Track receipts and expenses for tax filing

Related Tools

Key Japanese Terms Glossary

References & Sources

1. NTA - Cryptocurrency Tax Treatment and Calculation Forms
2. NTA Tax Answer No.1524 - When Cryptocurrency is Sold
3. Financial Services Agency - 2026 Tax Reform Request
4. NTA - Tax Return Preparation Corner

Last Updated: January 2026

Author: Denpyo Content Team