Investment taxes in Japan
How stocks, dividends, NISA, iDeCo, and crypto are taxed — and when filing helps.
Listed-share gains and dividends are usually taxed separately at about 20.315%, NISA shelters eligible gains entirely, iDeCo defers tax and deducts contributions, and crypto is taxed as miscellaneous income at your progressive rate — much higher for large gains.
Effective: 2026-01-01 to 2026-12-31
Professional review pending — treat as draft and confirm with the authorities.
Key points
- Listed shares: separate taxation, combined 20.315%; a withholding account can avoid filing.
- Filing a share loss lets you offset dividends and carry the loss forward three years.
- NISA shelters gains and dividends but its losses cannot offset taxable gains.
- Crypto is miscellaneous income at progressive rates — taxable on swaps and spending, not just cash-out.
Shares, dividends, and accounts
Gains on listed shares are generally taxed under separate self-assessment at a combined 20.315% (15% national + 0.315% reconstruction + 5% local). A withholding-designated (特定) account can settle the tax without a return. Listed dividends usually have 15.315% national withholding plus 5% local; you may choose non-filing, aggregate, or separate taxation. Filing can be worthwhile to offset a listed-share loss against dividends and to carry a qualifying loss forward three years — but filing can also raise resident-tax-based measures like health-insurance premiums.
NISA, iDeCo, and crypto
NISA lets you invest up to ¥3.6M a year (¥18M lifetime at acquisition cost) with eligible gains and distributions tax-free; sold capacity generally becomes reusable the next year, but NISA losses cannot offset taxable gains. iDeCo deducts contributions from income, defers investment tax, and taxes benefits as pension or retirement income. Crypto is different: disposals — selling, swapping, or spending — generally produce miscellaneous income taxed at your progressive rate, and crypto losses do not get the listed-share loss regime.
Who this is for
- New and active investors
- People weighing NISA, iDeCo, or crypto
What this is not
- Foreign brokerage and cross-border specifics
- US taxpayers (PFIC issues)
- Deciding to file dividends or losses affects resident tax, insurance premiums, and dependent status — model the whole picture, not just national tax.
Frequently asked questions
How is cryptocurrency taxed in Japan?
Crypto profits are treated as miscellaneous income (雑所得) and taxed at your marginal rate — combined with resident tax this can reach roughly 55%, unlike the ~20% flat rate for listed stocks. Every disposal is taxable, including selling for yen, trading one crypto for another, and spending crypto on goods. You must track cost basis and calculate gains, so recordkeeping tools are important, and larger activity often warrants a tax accountant.