![Using Crypto to Send Money Home from Japan? What the 55%→20% Tax Reform Means for You [2026]](https://media.yolo-japan.com/wp-content/uploads/2026/06/crypto-tax-reform-2026-en.webp)
Introduction
If you send money home using Bitcoin or USDT, this is worth reading. Japan’s government has officially announced plans to cut crypto taxes from a maximum of 55% down to a flat 20%, recording it in the government’s official 2026 tax policy document. That’s less than half the current rate — and it could significantly change the cost of sending money and making transactions.
TL;DR
- Crypto tax is moving toward a flat 20% (down from a maximum 55%)
- Officially recorded in Japan’s 2026 government tax policy document
- This is not in effect yet — the law needs to pass first
- More options for those sending money home from Japan once it’s enacted
The tax information in this article is based on official information from the National Tax Agency (NTA). Tax reform details may change during the legislative process. For personal tax guidance, consult a tax professional.
How the Current Tax System Works: Why 55% Is Possible
Under the current system, crypto asset profits are classified as *miscellaneous income (zatsu shotoku, comprehensive taxation)*. This means they are added on top of your other income (salary, freelance earnings, etc.) and taxed at a progressively higher rate.
For residents whose combined income exceeds ¥40 million, the national tax rate reaches 45%. Add the standard 10% resident tax (jyuminzei) and the effective rate on crypto profits can reach 55%.
This high rate has been widely noted as a major obstacle to crypto investment and participation in Japan’s Web3 economy.
What Changes: A Flat 20% Separate Self-Assessment Tax
With the proposed reform, crypto profits will be taxed under the same system as listed stocks and investment trusts. A flat 20% tax rate will apply to all profits, regardless of your total income level.
| Current | Proposed | |
|---|---|---|
| Tax rate | Up to 55% (combined with salary) | Flat 20% |
| Can you deduct losses from gains? | Limited | Potentially expanded to stocks, FX |
| Can you carry losses into future years? | No | 3-year carryover under consideration |
At a 20% flat rate, a profit of ¥1 million would result in ¥200,000 in tax rather than potentially ¥550,000. The difference compounds significantly for larger gains.
Why Now?
The timing reflects Japan’s push to remain competitive in global Web3 development. Countries like Singapore, the UAE, and Portugal offer significantly lower crypto tax burdens, and there have been cases of investors and entrepreneurs relocating to those jurisdictions.
There is also a compliance angle: complex rules and high rates have made accurate filing difficult for many. A simpler, lower rate is expected to improve voluntary compliance.
(Source: Financial Services Agency Japan)
The reform is positive news, but current tax law still applies to any profits you realize today. No need to rush transactions before the reform is formally enacted.
What This Means for Us: More Options for Remittances and Investing
For those sending money home to family while working in Japan, this reform is particularly relevant. Some international residents have explored using stablecoins as a lower-cost alternative to traditional remittance channels, but the complexity of tax filing under the current system has made many hesitant.
If the reform passes, tax reporting on crypto-based transfers and exchanges should become significantly simpler. For a full breakdown of how crypto gains are taxed in Japan today, see our Cryptocurrency Taxes in Japan guide. For a comparison of other remittance options, see How to Send Money Overseas from Japan.
That said, even with a lower rate, each individual transaction remains a taxable event. Any gain realized at the point of exchange or transfer (including stablecoin transactions) is still subject to tax. The reform makes it cheaper and simpler, but not tax-free.
For international residents in Japan, tax treatment can vary depending on your length of stay and whether a tax treaty exists between Japan and your home country. Those classified as hi-eijusha (non-permanent residents — generally under 5 years in Japan) may be exempt from tax on certain overseas-sourced income. Consult a tax professional familiar with international tax for your specific situation.
When Does This Take Effect? No Confirmed Date Yet
The tax reform outline is a policy direction statement. For the new rate to actually apply, several steps still need to happen:
- The Financial Instruments and Exchange Act amendment passes the Diet
- Related tax legislation passes and is promulgated
- The National Tax Agency issues guidance and updated filing instructions
A 2026 legislative pass with a 2027 effective date is being discussed, but the timeline depends on how Diet proceedings go. The direction is confirmed — the exact date is not.
FAQ
Should I buy crypto now before the reform passes?
This article is informational, not investment advice. Tax-driven investment decisions have many variables, and the reform is not yet law. If you are considering significant positions, consult a tax accountant who handles crypto assets.
As an international resident in Japan, does Japanese crypto tax law apply to me?
Generally, yes. If you have an address registered in Japan (jyusho), Japanese tax law applies to your worldwide income. Those classified as non-permanent residents (under 5 years in Japan) may have exceptions based on tax treaties or income source rules. Consult a tax professional for your specific situation.
Can I offset crypto losses against other income?
Under the current system, this is limited. The proposed reform includes expanding loss offsetting rules, potentially allowing crypto losses to offset gains from stocks or FX, but the specifics are still being finalized.
Does this apply to NFTs or DeFi earnings?
The scope of the reform for NFTs and DeFi income is not yet formally defined. Check for updated guidance from the Financial Services Agency and National Tax Agency as the legislation progresses.
Do I also need to report to my home country’s tax authority?
Depending on your home country’s tax laws and any applicable tax treaties, you may have reporting obligations in your home country as well. To avoid double taxation, consult a professional familiar with both countries’ tax systems.
Key Takeaways
- ✅ Japan is moving crypto tax to a flat 20% rate (from a maximum 55%)
- ✅ Included in the 2026 tax reform outline; FIEA amendment expected this Diet session
- ✅ Not in effect yet — current rates still apply to today’s transactions
- ✅ Loss carryover and broader offsetting rules are also under consideration
- ✅ International residents should also check non-permanent resident rules and applicable tax treaties
- ✅ For tax guidance specific to your situation, consult a professional
This is a significant shift for anyone holding or trading crypto assets in Japan. Keep an eye on Diet proceedings in 2026 — when the legislation passes, we’ll update you with the full details and an effective date.
