Japan government backs 20% tax on crypto profits, on par with stocks 

Japan has taken another step to reform its crypto taxation, replacing its tiered system that can reach as high as 55%.

The Japanese government is reportedly backing plans to introduce a significant reduction in the nation’s maximum tax rate on crypto profits, with a flat rate of 20% across the board.  

Japan’s financial regulator, the Financial Services Agency (FSA), first floated the proposed tax changes in mid-November, outlining plans to introduce a bill in early 2026, and now the government and ruling coalition — the political parties in control of the National Diet (parliament) — are on board.   

According to a report from Japanese news outlet Nikkei Asia on Sunday, the new rules aim to align crypto taxation rules with those of other financial products, such as equities and investment funds. 

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