Taxes · JPN
Taxes in Japan
In Japan, profits from selling or exchanging cryptocurrency are classified as miscellaneous income and taxed at progressive income tax rates up to 45%, plus a 10% local inhabitant tax, for a potential top effective rate of 55%. There is no separate preferential capital gains rate for crypto, which is a key distinction from many other countries. Losses from crypto generally cannot be carried forward to offset future income, making Japan one of the more tax-burdensome jurisdictions for active crypto investors.
The tax figures
Tax wedge
33.12 %
Of every €100 an employer spends on an average single worker, about €33 goes to tax and social contributions before pay-out.
13 of 36 countries that publish it · 2025 · see the ranking →
What this measures, and what it does not
The OECD tax wedge: income tax plus employee AND employer social contributions as a share of total labour cost, for a single person at exactly the average wage. It is a comparable type case between countries — not your personal tax rate.
Tax on pay
22.65 %
Of every $100 of gross pay at the average wage in Japan, about $23 goes to income tax and employee social contributions.
11 of 37 countries that publish it · 2025 · see the ranking →
What this measures, and what it does not
The OECD net personal average tax rate: income tax plus the EMPLOYEE’s social contributions as a share of gross wage earnings, for a single person with no children at exactly the average wage. This is the rate you can apply to a salary. It is deliberately smaller than the tax wedge on the same page, which measures a wider bite (it adds the employer’s contributions) over a wider base (total labour cost) — two honest answers to two different questions.
Take-home pay
$38,818 PPP
The average job in Japan pays about $38,818 a year (PPP) after income tax and the employee's social contributions.
24 of 37 countries that publish it · 2025 · see the ranking →
What this measures, and what it does not
Our own calculation: the OECD average annual wage multiplied by (1 − the OECD net personal average tax rate). Both legs share the same denominator — gross wage earnings — which is what makes the multiplication valid; the tax wedge, which is measured against total labour cost including the employer’s contributions, cannot be used this way. It is a comparable type case for a single average earner: not your salary, and not a full net-income figure, since it excludes benefits, deductions and consumption taxes.
Top income tax
55.95 %
37 of 37 countries that publish it · 2025 · see the ranking →
What this measures, and what it does not
The top statutory rate on wage income — what the last euro of a very high salary is taxed at, combining central and typical sub-central rates (OECD). Almost nobody pays this on their whole income: it applies only above the top threshold.
Corporate tax
23.20 %
57 of 96 countries that publish it · 2026 · see the ranking →
What this measures, and what it does not
The statutory (headline) corporate income tax rate from OECD Corporate Tax Statistics. Effective rates after deductions and incentives are typically lower; this is the rate on paper that companies plan around.
The rules, in words
Income tax
Mining rewards, staking income, airdrops, and other crypto earnings are treated as miscellaneous income taxed at progressive rates of 5% to 45% plus 10% local inhabitant tax. Fair market value at time of receipt determines taxable amount.
VAT / GST
Exempt. Japan removed the consumption tax (VAT) on cryptocurrency transactions in 2017. Buying and selling crypto is not subject to Japan's 10% consumption tax for individual holders.
Capital gains
Crypto disposal gains are taxed as 'miscellaneous income' (zatsujo shotoku), not capital gains. Progressive income tax rates apply from 5% to 45%, plus 10% local inhabitant tax, giving an effective top rate of about 55%. No preferential flat rate exists.
Type case, not tax advice: figures describe a single average earner and standard rates; your situation depends on residency, deductions and local rules. Verify with the tax authority before acting. — Fiatmap