Japan Capital Gains Tax Guide (譲渡所得)
Japan taxes capital gains on securities at a flat 20.315% (15.315% national IIT + 5% inhabitant tax). Gains on listed shares held in NISA accounts are tax-free. Property capital gains are split into short-term (39.63%) and long-term (20.315%) categories based on a 5-year holding period. Annual filing is required for most gains outside withholding.
Japan's 譲渡所得 (Capital Gains Tax) is administered by the NTA. For related guidance, see our Investment Income Guide →, Personal Tax Guide →, and Property Tax Guide →.
Capital Gains on Securities (有価証券の譲渡所得)
- Flat rate: 20.315% on net gains (sale proceeds minus cost basis and transaction fees).
- Breakdown: 15.315% national IIT (including reconstruction surcharge of 2.1% of the 15% base) + 5% inhabitant tax.
- Losses on listed shares can be offset against gains on other listed shares and carried forward for 3 years.
- Withholding tax is automatically deducted by the securities company at the time of sale (申告分離課税). Separate filing of the gain on the tax return is required to claim loss carryforwards.
- There is no distinction between short-term and long-term securities gains — all are taxed at the same flat rate regardless of holding period.
Property Capital Gains (不動産の譲渡所得)
- Short-term gains (held ≤ 5 years): 39.63% (30.63% national IIT + 9% inhabitant tax).
- Long-term gains (held > 5 years): 20.315% (15.315% national + 5% inhabitant) — same rate as securities gains.
- Special deduction: JPY 30M for gains on the sale of a principal residence (居住用財産の3,000万円特別控除).
- Additional relief for principal residence: reduced rates of 14.21% (long-term portion) for gains up to JPY 6,000,000 after the JPY 30M deduction.
- Losses on real estate cannot generally be offset against salary or business income (exceptions for certain principal residence losses).
Other Capital Gains
- Cryptocurrency gains: Treated as miscellaneous income (雑所得), not capital gains. Taxed at progressive IIT rates (5–45%) plus 10% inhabitant tax, not the flat 20.315% rate.
- Gold and precious metals: Generally taxed as miscellaneous income, or capital gains if held as part of a business.
- Life insurance surrenders: Taxed as miscellaneous income with a formula-based calculation of the taxable portion.
Filing Requirements
- Gains on securities are subject to self-declared separate taxation (申告分離課税). Most taxpayers with only withholding do not need to file, but filing is required to claim losses, NISA adjustments, or foreign tax credits.
- Property gains must always be declared on the annual tax return by 15 March.
- Tax on property gains is generally paid in a lump sum along with the filing of the return.