Cryptocurrency Taxes and Tax Returns: Thematic Guide for 2026

What You Can Learn on This Page

• The basic concepts of cryptocurrency taxation and the conditions under which tax returns are required
• How to calculate gains and losses and the process leading to tax returns
• The risks of non-filing and underreporting, and the realities of additional tax assessments
• Taxation by asset and service types, including airdrops, NFT games, and stablecoins

If you make a profit from cryptocurrency (crypto assets), you are generally required to file a tax return. However, the method of calculating taxes and the necessity of filing depend on the nature and circumstances of the transactions. Therefore, it is important to correctly understand cryptocurrency taxation to calculate taxes appropriately and carry out the necessary procedures.

This page compiles information related to tax returns thematically, from basic tax knowledge to loss and gain calculations, tax-saving strategies, methods and points of caution for filing tax returns, and taxation by asset type. Please check the themes that match your transactions or the information you want to know.
Table of Contents

1. Basic Tax Knowledge
2. Preparation for Calculation and Filing
3. Tax Saving and Tax Strategies
4. Filing Risks and Penalties
5. Taxation by Asset and Service Types
6. Tax Reforms and Future Trends
7. Frequently Asked Questions (FAQ)

Basic Tax Knowledge

As of 2026, profits from cryptocurrency are subject to comprehensive taxation as "miscellaneous income." With the amendment of the Financial Instruments and Exchange Act in July 2026, a transition to separate taxation for declarations has been decided, expected to take effect from January 1, 2028. Let’s confirm the structure of the current system and the conditions under which tax returns are required thematically.

For detailed tax treatment, please also check the National Tax Agency's "Tax Treatment of Crypto Assets."

Tax rates and taxation timing explained by a tax accountant｜Contributed by Gtax

A tax accountant explains the timing of taxation for cryptocurrencies, the structure of miscellaneous income, methods of calculating gains and losses, and cases where tax returns are required. This is an article that should be read first as an entry point into the overall taxation.
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Important cryptocurrency taxes explained by a tax accountant

This article explains the characteristics of cryptocurrency income and the basic structure of how it is taxed. You can grasp three key points: comprehensive taxation, prohibition of loss offsetting, and prohibition of carryover deductions.
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Frequently asked questions about cryptocurrency taxes and tax returns

This article explains common questions such as the conditions under which filing is necessary, the treatment of overseas exchanges, and whether it can be discovered by companies, in a Q&A format. It serves as a reference when in doubt.
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Preparation for Calculation and Filing

You can sequentially confirm the methods for calculating gains and losses and the process for filing. The flow of gain and loss calculations and filing has been organized into two themes: year-end preparation and filing tools. Since the choice of calculation method becomes continuously applicable once reported, it is recommended to confirm it early.
Flow of Gain and Loss Calculation and Filing
Year-End Preparation and Filing Tools

When do profits subject to tax occur? Timing of gain and loss occurrence explained

This article explains the timing of gains and losses for different types of transactions such as sales, exchanges, and staking. It provides basic knowledge to prevent becoming unaware of the need to file a return.
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Explanation of moving average method and total average method for cryptocurrency gain and loss calculations

This article explains the differences and calculation examples of the moving average method and total average method used for gain and loss calculations. Since it cannot be changed for three years once reported, it is important to understand the mechanism before making a choice.
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Flow of cryptocurrency gain and loss calculation – from profit calculation to tax payment

This article explains the entire flow of tax returns from collecting transaction history to calculating gains and losses, creating tax return forms, and paying taxes. It serves as a practical guide for those filing for the first time to understand the procedures.
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Summary of important points for cryptocurrency taxes for tax returns

This article summarizes important points to keep in mind before filing, such as securing funds for tax payments, compressing gains and losses, and practical procedures for tax returns.
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Preparation for cryptocurrency taxes and tax returns before year-end｜Contributed by Gtax

This article explains the organization of transaction history, confirmation of gains and losses, and how to summarize expenses that should be completed before year-end. It also covers tax-saving strategies that can be implemented within the year, such as compressing gains and utilizing deductions.
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How to register and use Cryptact｜Easily and quickly file tax returns

This article explains how to register and use the cryptocurrency gain and loss calculation tool "Cryptact." It can automatically calculate complex transaction histories, streamlining the tax return process.
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Tax Saving and Tax Strategies

Since cryptocurrency losses cannot be carried over to the following year, it is important to confirm gains and losses within the year and consider necessary measures. Let’s check the mechanism of "loss compression," where unrealized losses are sold to offset profits, and points to consider when cutting losses at year-end regarding cryptocurrency tax-saving and tax strategies.

Tax-saving strategies for cryptocurrencies that can be implemented immediately, and the tax-saving effects of loss compression｜Contributed by Aerial Partners

This article explains the mechanism and specific steps of "loss compression," where unrealized losses are sold to offset profits. It is a tax-saving strategy that can be utilized in both profitable and loss-making years.
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Is it better to cut losses before year-end for higher tax-saving effects? A tax accountant explains the advantages and disadvantages of tax selling｜Contributed by Aerial Partners

This article explains the advantages and disadvantages of tax selling through year-end loss cutting and the actual tax-saving effects through case studies. The key is to limit the cut to the amount that can be offset against profits.
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Filing Risks and Penalties

Non-filing or underreporting may result in additional burdens such as additional tax assessments. Let’s confirm under what circumstances filing is necessary, and what burdens arise when failing to file or when there are errors in the filing.

You can't just say you didn't know! The obligations for tax returns on cryptocurrency transactions and the reality of additional tax assessments｜Contributed by Gtax

This article explains the mechanism and simulation of additional taxation arising from non-reporting and underreporting. In the tax audit of 2023, an average of 6.62 million yen in additional tax was incurred. You can check the actual situation of reporting obligations. Read the article →

What is the additional tax if you did not report virtual currency profits of 1 million yen or 10 million yen? We explain the simulation results｜Contributed by Gtax

We simulate the tax amount for profits of 1 million yen and 10 million yen from virtual currency, as well as the additional tax incurred for non-reporting. You can confirm the actual penalties that increase the longer you leave them unattended. Read the article →

Additional tax from tax audits on virtual currency? Specific risks and countermeasures caused by mistakes in tax returns｜Contributed by Gtax

We explain what is checked during tax audits and the tax rates for each penalty. Reporting omissions were discovered in 92% of the audit targets. You can check the points for accurate profit and loss calculations and early reporting. Read the article →

Taxation by Asset and Service

With airdrops, NFTs, blockchain games, and more, the timing of income generation and the method of calculating profits and losses differ depending on the type of virtual currency transaction. It is important to confirm how your transactions will be treated in order to calculate profits and losses appropriately.

Here, we organize the tax points for each transaction divided into three themes: tokens/NFTs, games, and DeFi/derivatives. Let's check from the theme that corresponds to your transactions.
Tokens/NFTs Games DeFi/Derivatives

Is there tax on cryptocurrency (virtual currency) or NFTs received from airdrops?

We explain the taxation considerations for cryptocurrencies and NFTs received from airdrops. The timing of taxation changes depending on whether there is a market value at the time of receipt. Read the article →

Detailed explanation of the tax knowledge and calculation examples necessary for NFT transactions

We explain the timing and calculation methods for profits generated from NFT purchases, sales, and creator sales, depending on the type of transaction. Since there are multiple income categories, it is necessary to confirm according to the nature of the transaction. Read the article →

What happens to the tax on income from cryptocurrency IEOs? Checkpoints for tax returns｜Contributed by Aerial Partners

We explain the tax treatment of profits from selling tokens purchased through IEOs and the points to be careful about during tax returns. You can confirm the points where it is easy to neglect keeping the acquisition cost. Read the article →

Basic tax points regarding stablecoins: Important points for beginners in virtual currency｜Contributed by Aerial Partners

We explain cases where taxation occurs in transactions involving stablecoins. Even if the price is stable, there may be taxable events in NFT purchases or DeFi operations. Read the article →

Do blockchain games also incur taxes? Timing of taxation and points to note regarding income from NFT transactions｜Contributed by Aerial Partners

We explain the timing of taxation on profits earned from blockchain games and the income categories. You can also confirm points that differ from regular virtual currency transactions, such as that NFT sales are considered capital gains. Read the article →

The mechanism of taxes incurred from STEPN and STEPN GO and points for tax returns｜Contributed by Aerial Partners

We explain the timing of taxation on rewards (GST, GMT, gems) earned from STEPN and what can be considered expenses, such as the cost of purchasing NFT sneakers. The tax treatment of STEPN GO is also confirmed. Read the article →

Detailed explanation of the tax knowledge and profit and loss calculation methods necessary for DeFi transactions

We explain the timing and calculation methods for profits and losses for various types of DeFi transactions, such as swaps, staking, and liquidity provision. You can also confirm the unique points of DeFi, where it is difficult to organize transaction histories. Read the article →

Important tax points to remember for "PerpDEX"! Be careful of the pitfalls of airdrops and TGE｜Contributed by Gtax

We explain the taxation considerations for futures trading and airdrops on PerpDEX. It is important to accurately grasp the timing of value determination for tokens before and after TGE, as it differs depending on the timing of receipt and market price. Read the article →

Tax Reform and Future Trends

The taxation of virtual currencies is expected to change significantly in the future. The amendment of the Financial Instruments and Exchange Act in July 2026 legally established the transition to separate taxation for declarations, but the change in taxation method is expected to start from January 1, 2028. Let's separate it from the current system and check future trends.

What if separate taxation for declarations is realized? Important tax points to keep in mind｜Contributed by Gtax

We explain the changes that will occur when separate taxation for declarations is introduced, comparing it with the current system. You can understand the points of system design, such as the standardization of tax rates, profit and loss offsetting, and the possibility of specific accounts. Read the article →

Interpreting future legal amendment scenarios from the demands for virtual currency tax systems

We explain the differences in tax reform demands between JVCEA and the Financial Services Agency and the three scenarios for introducing separate taxation for declarations. You can understand the direction of system changes and what preparations can be made now. Read the article →

What happens to taxes if virtual currencies become subject to the Financial Instruments and Exchange Act?

We explain the tax changes if virtual currencies become subject to the Financial Instruments and Exchange Act. We organize the points of system transition, such as the application of separate taxation for declarations, profit and loss offsetting, and loss carryforward deductions. Read the article →

Frequently Asked Questions (FAQ)

How much profit from cryptocurrency requires tax declaration?
If you are a salaried employee and your total income from sources other than salary, including cryptocurrency, exceeds 200,000 yen per year, you are required to file a tax return. Even if it is below 200,000 yen, you still need to declare it for resident tax, and the judgment may vary depending on the scope of dependents and other income. For detailed conditions, please check "Summary of Tax Points for Cryptocurrency for Tax Declaration."
Can cryptocurrency losses be carried over to the following year?
Under the current system, losses from cryptocurrency, classified as miscellaneous income, cannot be carried over to the following year. You can offset gains and losses within the same year's miscellaneous income, but note that you cannot offset them against salary income or business income.
Which page should I read to learn more about separate taxation for declarations?
Currently, it is comprehensive taxation, but due to the amendment of the Financial Instruments and Exchange Act in July 2026, a transition to separate taxation for declarations has been decided. It is expected to be applicable from January 1, 2028. The tax issues will be summarized in the context of what happens when separate taxation for cryptocurrency is realized, key tax points to keep in mind, and the outlook for legal amendments based on cryptocurrency tax system requests.
Do company employees also need to file tax returns for cryptocurrency?
It may be necessary. Even if you receive year-end adjustments, if your income from sources other than salary, including cryptocurrency profits, exceeds a certain amount, you have an obligation to file a return. You cannot omit the declaration for the reason that you do not want your employer to know.
Are taxes incurred even when exchanging cryptocurrencies?
Even if you do not convert to Japanese yen, gains and losses are realized at the time of exchanging cryptocurrencies and are subject to taxation. Details on the timing of taxation are explained in "When do profits subject to taxation occur?"
This article is intended to provide general information and does not indicate individual tax judgments. For actual declarations, please check the published materials from the National Tax Agency and consult with tax professionals such as certified public accountants.
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