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Dividend tax in Japan 2026
Dividends from listed shares (holdings under 3%) can simply be left at the 20.315% withholding — final, flat, and combinable with listed-share loss offsets if declared separately.
Inside a NISA account the rate is 0% forever, with annual capacity of JPY 3.6 million and a JPY 18 million lifetime cap since 2024.
At a glance
- top rate
- 20.315% (listed, elective); progressive with credit otherwise
- entry band
- 0% within NISA
- tax year basis
- Calendar year; withheld at source
- filing deadline
- No filing needed when the withholding is left as final
- residency basis
- Residents: worldwide dividends (non-permanent residents: remittance rules apply)
- regime flag
- Ordinary-income declaration earns a 10%/5% dividend credit
Rates
How dividends and interest are taxed (2026)
| Rate | Base | Applies to |
|---|---|---|
| 20.315% | Gross | Listed-share dividends (under-3% holders) — withheld; final unless declared |
| 0% | — | Dividends and gains inside NISA accounts |
| Progressive + 10%/5% credit | Gross | Dividends declared as ordinary income (mandatory for 3%+ holders and larger unlisted dividends) |
| 20.315% | Gross | Interest on deposits, government bonds and bond funds — final withholding |
| 20% national | Gross | Dividends from unlisted companies — withheld on account |
Thresholds & allowances
- NISA capacityJPY 3.6m/year, 18m lifetime
Growth (2.4m) plus funded (1.2m) frameworks; the 2026 reform adds a child NISA of JPY 600,000 a year (6m total) for under-18s
Residency
Residency trigger
Choose your lane annually: leave listed dividends at the final 20.315% withholding, declare them separately to use listed-share losses, or declare as ordinary income for the credit when your bracket is low.
Non-resident treatment
Non-residents suffer 15.315% withholding on listed-share dividends and 20.42% on unlisted ones, final without a treaty claim.
Notes
- Interest withholding at 20.315% is final — bank interest never appears in returns.
- The separate-declaration option lets listed-share capital losses absorb dividend income — the standard loss-harvesting route.
- Small unlisted dividends (under JPY 100,000 a year per company) can skip national declaration but stay reportable for inhabitant tax.
FAQ
How are dividends taxed in Japan?
Listed-share dividends: a flat 20.315% withheld at source, which you can leave as final; NISA holdings pay 0%; unlisted or large-stake dividends join the progressive scale with a partial credit.
What does the NISA shelter?
Up to JPY 3.6 million of new investment a year — JPY 18 million lifetime — with all dividends and gains tax-free permanently; a JPY 600,000-a-year child version arrives under the 2026 reform.
Figures: tax year 2026, compiled from public sources. Not tax advice.