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Capital gains tax in Japan 2026
Share and bond gains are taxed separately at a flat 20.315%, with listed-share losses carried forward 3 years against gains and separately-declared dividends.
Property runs on a 5-year cliff measured at 1 January: 39.63% combined for short holds, 20.315% after — and selling your own home enjoys a JPY 30 million special deduction.
At a glance
- top rate
- 39.63% (property held under 5 years)
- entry band
- 0% within a Nippon Individual Savings Account (NISA); JPY 30m home-sale deduction
- tax year basis
- Calendar year
- filing deadline
- 16 February – 15 March
- residency basis
- Permanent residents: worldwide gains; exit tax on emigration for JPY 100m+ portfolios
- regime flag
- Homes owned over 10 years: 14.21% up to JPY 60 million of gain
Rates
Capital gains treatment (2026)
| Rate | Base | Applies to |
|---|---|---|
| 20.315% | Net gain | Shares, bonds and securities — separate taxation, 3-year listed-loss carryforward |
| 20.315% | Net gain | Real estate owned more than 5 years at 1 January of the sale year |
| 39.63% | Net gain | Real estate owned 5 years or less |
| 14.21% | First JPY 60m of gain | Your residence owned over 10 years (20.315% above) |
| 0% | — | Household goods and assets of ordinary life; NISA holdings |
| Progressive | Gain | Other assets (gold, collectibles) — ordinary income, half-taxed for 5-year-plus holds as occasional income |
Thresholds & allowances
- Home-sale deductionJPY 30 million
Off the gain when selling the residence you lived in
- Listed-share losses3-year carryforward
Offset against share gains and separately-declared listed dividends
- Residential-property losses3-year carryforward
Losses on selling your home can offset other income under conditions
Residency
Residency trigger
Gains are self-assessed in the annual return; the 5-year property clock counts to 1 January of the sale year, not the sale date — a trap worth double-checking.
Non-resident treatment
Non-residents pay 15.315%/30.63% on Japanese property gains (10.21% withheld on proceeds), and 15.315% on substantial-stake sales (25%/5% test) and real-estate-rich company shares.
Notes
- Qualified employee stock options defer everything to sale, taxed as a 20.315% capital gain; non-qualified options are salary at exercise.
- The exit tax deems JPY 100 million+ securities portfolios sold at departure, refundable on return within 5 years with the assets intact.
- Rollover relief for shares is confined to qualifying reorganizations.
- Land acquired in 2009–2010 carries an extra JPY 10 million deduction after 5 years.
FAQ
How are share gains taxed in Japan?
At a flat 20.315% regardless of holding period, with listed-share losses usable for 3 years — and 0% inside a NISA account.
What is the 5-year property rule?
Ownership over 5 years as of 1 January of the sale year means 20.315% on the gain; anything shorter pays 39.63% — and your own home gets JPY 30 million off the gain first.
Figures: tax year 2026, compiled from public sources. Not tax advice.