Taxes on dividends
Withholding, non-filing, aggregate vs separate taxation, and the dividend credit.
Listed dividends generally have 15.315% national withholding plus 5% local tax, and you can choose non-filing, aggregate taxation (with the dividend credit), or separate taxation — the best choice depends on your marginal rate, losses, resident tax, and insurance effects.
Effective: 2026-01-01 to 2026-12-31
Professional review pending — treat as draft and confirm with the authorities.
Key points
- Listed dividends: 15.315% national + 5% local withholding.
- Three options: non-filing, aggregate taxation, or separate taxation.
- Aggregate taxation can use the dividend credit at lower incomes.
- Large shareholders and unlisted dividends follow different rules.
Your three options
For listed dividends you can leave them under withholding (non-filing), include them in aggregate taxation (where the dividend credit and your progressive rate apply), or use separate taxation (which pairs with share-loss offsets). Lower-income taxpayers sometimes gain from aggregate taxation and the dividend credit; higher-income taxpayers often prefer non-filing or separate taxation.
What to watch
The right choice depends on the dividend credit, any share losses to offset, your marginal rate, and — importantly — resident tax, health-insurance premiums, and dependent status, since filing adds the income to those measures. Large shareholders and unlisted-company dividends have their own, less favorable rules. Model the full effect before choosing.
Who this is for
- Dividend investors
- People choosing how to report dividends
What this is not
- Large shareholders (special rules)
- Filing dividends can raise insurance premiums and affect dependents — weigh national and local effects together.
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.