How much profit do you need to make in crypto (crypto assets) before it is taxed in Japan? Short answer: if you make even ¥1 of profit, it is subject to income tax. However, someone who receives salary from a single employer and has had year-end tax adjustment done does not need to file an income tax return if the total of their non-salary income (including crypto profit) is ¥200,000 or less for the year. Resident tax is different: it must be declared even when profit is ¥200,000 or below, so '¥200,000 or under means nothing to do' is not correct.
Based on the National Tax Agency's Tax Answer pages and its 'Tax Treatment of Crypto Assets, etc.: FAQ' (last revised December 2025 (Reiwa 7)), this article sets out where the line for filing sits, a combined income-tax-and-resident-tax rate table, when a gain becomes taxable, the treatment of merely holding crypto, and how profit made on overseas exchanges (MEXC, BingX, etc.) is treated, under the law as it stood on 16 September 2026.
How much crypto profit is taxed in Japan? The ¥200,000 rule for salaried employees, and resident tax is separate
Under the Income Tax Act, profit from selling crypto assets and similar transactions is classified in principle as miscellaneous income (other miscellaneous income), taxed under aggregate (comprehensive) taxation together with salary and other income (NTA FAQ 2-2). There is no minimum amount below which income tax simply does not apply — once a profit arises, it becomes income for that year. However, separate rules set out who does not need to file a return.
| Situation | Condition that requires a return | Note |
|---|---|---|
| Salaried employee (one employer) | Total of income other than salary and retirement income (including crypto profit) exceeds ¥200,000 for the year | No income tax return needed if ¥200,000 or under. Resident tax must still be declared (see below) |
| Salary above ¥20 million | Must file a return regardless of amount | The ¥200,000 rule does not apply |
| Filing a return anyway | Profit of ¥200,000 or under must also be included when filing | The ¥200,000 rule only applies to those who are not filing |
| No salary income | Where total income exceeds the total of income deductions such as the basic deduction | The ¥200,000 rule is written for salaried employees and does not apply as-is |
※ Source: National Tax Agency Tax Answer No. 1900 (current as of 1 April 2026 (Reiwa 8)). The ¥200,000 figure is judged on 'profit' (income after deducting the cost of disposal, fees and other necessary expenses from proceeds).
The ¥200,000 rule is an income-tax (return-filing) rule; resident tax has no equivalent threshold. Even if crypto profit is ¥200,000 or under and you do not file an income tax return, you must still declare it to your municipality for resident tax. If you do file an income tax return, that content is shared with your municipality, so a separate resident-tax declaration is not needed.
Note that if your income (total sale proceeds) from crypto-asset transactions in a year exceeds ¥3,000,000, the profit is in principle classified as business income if you keep the required books and records, or as miscellaneous income (miscellaneous income related to a business) if you do not (FAQ 2-2, updated December 2025 (Reiwa 7)). Anyone trading at a scale close to full-time should be aware that the income category itself may change.
Crypto tax-rate table: 5%–45% income tax plus 10% resident tax (up to about 55%)
Under aggregate taxation, salary income and other income are combined with crypto profit, income deductions are subtracted to reach 'taxable income', and income tax is calculated against that using the quick-reference table below. Resident tax's income levy is roughly a flat 10%, so the combined rate falls between 15% and 55% (the special reconstruction income tax is separate).
| Taxable income | Income tax rate | Deduction | Combined rate with 10% resident tax |
|---|---|---|---|
| ¥1,000 – ¥1,949,000 | 5% | ¥0 | approx. 15% |
| ¥1,950,000 – ¥3,299,000 | 10% | ¥97,500 | approx. 20% |
| ¥3,300,000 – ¥6,949,000 | 20% | ¥427,500 | approx. 30% |
| ¥6,950,000 – ¥8,999,000 | 23% | ¥636,000 | approx. 33% |
| ¥9,000,000 – ¥17,999,000 | 33% | ¥1,536,000 | approx. 43% |
| ¥18,000,000 – ¥39,999,000 | 40% | ¥2,796,000 | approx. 50% |
| ¥40,000,000 and above | 45% | ¥4,796,000 | approx. 55% |
※ Income tax = taxable income × rate − deduction. The special reconstruction income tax (2.1% of income tax, or 1.1% for income earned from 1 January 2027 (Reiwa 9)) is added on top. Resident tax's income levy has a standard rate of 10% (4% prefectural + 6% municipal) and varies slightly by local authority.
Worked example: a salaried employee makes a ¥1,000,000 profit from crypto
Suppose someone whose taxable income from salary alone is ¥4,000,000 makes a ¥1,000,000 profit from crypto (after necessary expenses). Taxable income becomes ¥5,000,000, which falls in the '¥3,300,000 – ¥6,949,000' band, so income tax is ¥5,000,000 × 20% − ¥427,500 = ¥572,500. Without the crypto profit, income tax would be ¥4,000,000 × 20% − ¥427,500 = ¥372,500. So the ¥1,000,000 profit increases income tax by ¥200,000, and resident tax by roughly ¥100,000 — a total increase of about ¥300,000 (about 30% of the profit), excluding the special reconstruction income tax.
The tax on crypto profit depends not only on the amount of profit but also on your other income, such as salary, and your income deductions. The table above is only for checking which band your own taxable income falls into: for the same ¥1,000,000 profit, someone with taxable income under ¥1,950,000 sees roughly ¥150,000 added, while someone above ¥18,000,000 sees roughly ¥500,000 added — a large difference.
Under the amended Financial Instruments and Exchange Act enacted on 15 July 2026, crypto profit is expected to eventually move to separate self-assessment taxation at a 20% rate, but this is expected to apply from 1 January 2028 at the earliest — trades in 2026 and 2027 remain under the current aggregate taxation. The timing of the move to separate taxation is covered in the next column.
When does a gain become taxable? At sale, exchange or payment — merely holding is not taxed
A common question is 'am I taxed just for holding crypto?' No — an unrealised increase in the value of crypto assets you hold is not taxed. Income arises at the point you 'dispose of' or 'acquire' crypto assets, as follows (NTA FAQ 1-1 to 1-3, 1-7).
| Transaction | How income is calculated | FAQ |
|---|---|---|
| Sold crypto assets for yen | Sale price − cost of disposal (acquisition cost per unit × quantity) − fees | 1-1 |
| Bought goods or services | Value of the goods (= disposal price of the crypto assets) − cost of disposal | 1-2 |
| Crypto-to-crypto exchange | Market value of the crypto assets acquired (= disposal price) − cost of disposal. Taxable even without converting to yen | 1-3 |
| Mining, staking, lending | Market value at the time received is income; a separate disposal gain is calculated on sale | 1-7 |
| Settled a futures position | Aggregate the gain or loss on each settlement. Not eligible for FX-style separate self-assessment taxation; taxed under aggregate taxation | 2-12 |
| Held or moved to own wallet | No income arises (a transfer that does not change ownership is not a disposal) | — |
※ Source: National Tax Agency 'Tax Treatment of Crypto Assets, etc.: FAQ', last revised December 2025 (Reiwa 7). Acquisition cost is calculated per type of crypto asset using either the total average method or the moving average method; the total average method applies if no notification is filed (FAQ 2-4, 2-5).
On overseas exchanges it is common to first convert Bitcoin into USDT (a stablecoin) before buying another coin. This 'BTC→USDT' exchange counts as an exchange between crypto assets, and income is calculated as if the unrealised gain on the BTC was realised at that point (FAQ 1-3). The fact that this is taxable even without converting to yen is the point most often overlooked.
For a year in which a loss arises, a loss from miscellaneous income cannot be offset against other income such as salary (FAQ 2-11), and a miscellaneous-income loss cannot be carried forward to later years either. It can be offset against other miscellaneous income in the same year, such as profit from a different crypto asset.
Profit on overseas exchanges (MEXC, BingX and others) is also subject to Japanese tax
Residents of Japan owe Japanese income tax on their worldwide income, regardless of where it arose. Profit made on overseas exchanges such as MEXC and BingX is combined and declared as miscellaneous income, the same as profit from domestic exchanges. Overseas exchanges often do not issue the annual transaction reports that domestic exchanges provide, so the following preparation is needed.
- Save your transaction history (spot fills, futures settlements, deposits/withdrawals, fees) as CSV files, organised by year. Get this before an exchange becomes unusable due to withdrawal or closure
- Convert USDT-denominated gains and losses into yen at the exchange rate on the date of settlement, and use a consistent conversion method within the year
- Work out the acquisition cost per unit for each type of crypto asset using the total average method. If you want to use the moving average method instead, file a notification by the filing deadline for the year you acquired the asset
- A transfer between a domestic and an overseas exchange is a 'move' and does not itself generate income. However, exchanging or selling after the transfer is taxable, so keep the acquisition cost carried forward
- Resident tax must be declared even if profit is ¥200,000 or under. If it exceeds ¥200,000, file an income tax return between 16 February and 15 March of the following year
As for whether 'an overseas exchange means it won't be noticed', the automatic exchange of crypto-asset information (CARF), which took effect in January 2026, and the National Tax Agency's published crypto-asset audit results are covered in the next column.
Are overseas exchange crypto profits reported to Japan's tax office? CARF and audits →
This article is a general explanation based on National Tax Agency publications, and does not calculate individual tax amounts or handle filing on your behalf. If the amount is large or you are unsure how income should be classified, check with your local tax office or a tax accountant familiar with crypto assets.
Frequently asked questions
Q. How much crypto profit is taxed in Japan?
A. Once a profit arises, it is subject to income tax regardless of the amount. However, a salaried employee who receives salary from a single employer and has had year-end adjustment done does not need to file an income tax return if the total of income other than salary (including crypto profit) is ¥200,000 or under for the year (NTA No. 1900). Resident tax must be declared to your municipality even at ¥200,000 or under.
Q. If my crypto profit is ¥200,000 or under, do I owe no tax at all?
A. It only removes the need to file an income tax return; resident tax still has to be declared and paid. If you file an income tax return for another reason, such as a medical expense deduction, profit of ¥200,000 or under must also be included. Anyone with salary income above ¥20,000,000 must file regardless of amount.
Q. Am I taxed just for holding crypto?
A. No. An unrealised increase in the value of crypto assets you hold is not taxed. Income arises when you dispose of the asset — by selling, exchanging for another crypto asset, or buying goods — or when you receive crypto assets, for example through staking (NTA FAQ 1-1 to 1-3, 1-7).
Q. What is the tax rate on crypto profit?
A. In principle it is taxed as miscellaneous income under aggregate taxation: income tax has seven bands from 5% to 45% depending on taxable income (NTA No. 2260), plus roughly 10% resident tax income levy and the special reconstruction income tax. The combined rate runs roughly from 15% to 55%, determined by the taxable-income band once combined with other income such as salary.
Q. Is converting Bitcoin into USDT taxable, even without cashing out?
A. Yes. Exchanging one crypto asset for another is treated as disposing of the asset held to acquire another crypto asset, and the difference between the market value at the time of exchange and the acquisition cost becomes income (NTA FAQ 1-3). This is taxable even without converting to yen.
Q. Do I need to declare profit made on overseas exchanges such as MEXC and BingX?
A. Yes. Residents of Japan owe Japanese income tax on their worldwide income, and profit from overseas exchanges is combined and declared as miscellaneous income, the same as profit from domestic exchanges. Because overseas exchanges often do not issue annual transaction reports, keep your own transaction history and convert USDT-denominated gains and losses to yen at the settlement-date exchange rate.
Q. Can crypto losses be offset against my salary?
A. No. A loss arising in the calculation of miscellaneous income cannot be offset against other income such as salary (NTA FAQ 2-11), and it cannot be carried forward to later years either. It can be offset against other miscellaneous income in the same year, such as profit from a different crypto asset.
Sources
- National Tax Agency (Japan) | Tax Answer No. 1900: Salaried employees who must file a return (current as of 1 April 2026) (Japanese) →
- National Tax Agency (Japan) | Tax Answer No. 2260: Income tax rates (current as of 1 April 2026) (Japanese) →
- National Tax Agency (Japan) | Tax treatment of crypto assets, etc.: FAQ, last revised December 2025 (PDF, Japanese) →
- National Tax Agency (Japan) | Tax Answer No. 1524: Tax treatment when a gain arises from using crypto assets (Japanese) →
- National Tax Agency (Japan) | Tax treatment of crypto assets (Japanese) →
- Ministry of Internal Affairs and Communications | Individual resident tax (10% income-based rate: 4% prefectural + 6% municipal; Japanese) →
FX Textbook is an independent information site, not an exchange or a provider of personal investment advice. Crypto-asset trading involves risk: price volatility, liquidation of leveraged positions, transfer mistakes and the operational risk of exchanges and service providers can cause you to lose some or all of your invested capital. No result is guaranteed.
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