If you receive staking rewards from crypto assets, those rewards may be treated as taxable income in Japan. Income calculation can be required not only when you sell crypto assets for yen, but also at the point you acquire crypto assets as a reward.
Where crypto assets are acquired through mining, staking, lending, or similar means, the profit generated from that acquisition is subject to income tax or corporate tax.
Source: Tax Treatment of Crypto Assets | National Tax Agency (NTA)
For this reason, anyone using staking should keep track of the date rewards were received, the quantity, the market value at the time of acquisition, and the price if the rewards are later sold. This article explains how tax on crypto staking rewards works in Japan, the general threshold for when a final tax return (annual tax filing) is required, and the information you should confirm when calculating your figures.
Note that the tax treatment can vary depending on individual circumstances. When actually filing, it is recommended that you check the NTA's latest guidance or consult a qualified tax professional.
Editor's note on the current legal framework (as of July 2026): Under current law, gains from disposing of crypto assets are classified as miscellaneous income and taxed under Japan's aggregate (comprehensive) taxation system. On July 15, 2026, a bill amending the Financial Instruments and Exchange Act (FIEA) passed the plenary session of the House of Councillors, which is expected to move crypto assets under the FIEA framework as financial instruments; a flat 20% separate self-assessment tax rate is expected to apply starting the year following the amended law's enforcement (projected around January 2028). Until that law takes effect, the miscellaneous-income / aggregate-taxation treatment described in this article remains the applicable rule.
Staking rewards can be subject to tax
When thinking about tax on staking rewards, it's necessary to separately confirm the treatment at the point rewards are received and the income category they fall under. Even if you have not converted the crypto assets into yen, you may still need to account for them as taxable income.
Here, we organize how income is calculated when staking rewards are received, and which income category individuals are generally treated under.
Staking rewards are calculated at the market value on the date of acquisition
As noted above, when crypto assets are acquired through staking, the market value at the time of acquisition is included in gross income. In other words, you need to confirm how much the crypto asset was worth in Japanese yen at the moment the staking reward was received.
For example, if you receive a staking reward worth ¥10,000 in crypto assets, that ¥10,000 equivalent may be treated as income. Even if you have not converted it into yen, note that the income calculation applies from the point the reward is received.
Staking rewards can occur repeatedly, even in small amounts. Trying to reconstruct everything later can be time-consuming when confirming receipt dates and market values, so it helps to regularly save your exchange or wallet history to make preparing your tax return easier.
The income category is, in principle, miscellaneous income
Profits an individual earns from crypto asset transactions are, in principle, classified as miscellaneous income. For staking rewards as well, if an individual is earning them as part of general asset management, the basic approach is to treat them as miscellaneous income.
Profit arising from crypto asset transactions is subject to income tax and, in principle, classified as miscellaneous income (other miscellaneous income).
Source: Tax Treatment of Crypto Assets | National Tax Agency (NTA)
Miscellaneous income is subject to aggregate taxation (comprehensive taxation), meaning it is combined with other income such as employment income to calculate the tax amount. This differs from a mechanism like separate self-assessment taxation, where gains from selling stocks, for example, are taxed at a fixed rate separately. As a result, for people with more income from sources such as employment income or business income, the tax impact of adding crypto-related income can be greater.
When are staking rewards calculated as income?
What tends to cause confusion around staking rewards and tax is that there are two separate points in time: the point of "receipt" and the point of "sale." Income calculation may be required just from receiving a reward, and if the price later rises and you sell, income calculation may also be required for the increase in value.
Understanding this structure also makes it easier to address the question of whether staking amounts to "double taxation."
The point of receiving a reward is subject to income calculation
Staking rewards are calculated based on the market value at the time they are received. For example, if you receive 0.01 ETH as a staking reward on a given day, and its market value at that time is ¥4,000, the idea is that this ¥4,000 equivalent is treated as income.
What matters here is recording the date the reward was received and its market value at that time. Because crypto asset prices fluctuate daily, the yen-equivalent value can differ even for the same quantity of reward, depending on the day it was received.
If you use a domestic Crypto Asset Exchange Service Provider, you may be able to check your transaction history or annual transaction report. However, the extent to which staking reward history is reflected in the annual transaction report can vary depending on the exchange or service you use.
For calculating the amount of income related to a sale, etc., including the cost of crypto assets disposed of, this can be done simply by preparing a "Crypto Asset Calculation Statement" (using either the total average method or the moving average method) based on the "Annual Transaction Report" sent by your Crypto Asset Exchange Service Provider.
Source: Tax Treatment of Crypto Assets | National Tax Agency (NTA)
If you use overseas services or a self-custody wallet, an annual transaction report from a domestic provider alone will not be sufficient, and you may need to compile your own reward and deposit/withdrawal history.
If you later sell the crypto assets you received, the increase in value is also calculated
If you later sell crypto assets that you received as staking rewards, income calculation may also be required at the time of sale. This is because, if the price rose between the time you received the reward and the time you sold it, that increase is treated as a profit.
For example, suppose you received ETH worth ¥200,000 as a staking reward. At that point, the ¥200,000 equivalent is subject to income calculation as a staking reward.
If you later sell that ETH for ¥300,000, the ¥100,000 difference — ¥300,000 minus the ¥200,000 acquisition cost — is subject to income calculation as the increase in value at the time of sale. In this case, the ¥200,000 at the time of receipt and the ¥100,000 increase at the time of sale need to be considered separately.
It's sometimes described as "double taxation," but the same profit is not taxed twice
Staking is sometimes described as involving "double taxation." This is because income calculation occurs both at the time the reward is received and again when it is later sold.
However, this does not mean the same profit is taxed twice. At the time of receipt, what's calculated is "the value acquired as a reward"; at the time of sale, what's calculated is "the portion by which the value increased after acquisition."
Using the earlier example, when you receive ETH worth ¥200,000, that ¥200,000 equivalent is treated as a reward. If you later sell it for ¥300,000, what's calculated at the time of sale is not the full ¥300,000, but the ¥100,000 remaining after subtracting the ¥200,000 acquisition cost.
When thinking about tax on staking rewards, it's important to separately organize the value at the time of receipt and the value gained afterward through sale.
General thresholds for when a tax return is required for staking rewards
Not everyone who receives staking rewards needs to file a tax return under the same conditions. Whether a return is required can depend on factors such as whether you have employment income, whether year-end tax adjustment (nenmatsu chosei) was performed, whether you have income other than crypto assets, and whether you're using certain deductions.
Here, we explain the general thresholds to check, focusing mainly on employees with employment income.
For employees, whether crypto-related income exceeds ¥200,000 is one general benchmark
For an employee who has undergone year-end tax adjustment, one general benchmark is whether the total of various types of income (excluding employment income and retirement income) exceeds ¥200,000 (roughly USD 1,300 at a reference rate of approximately ¥150/USD; actual thresholds are set in yen). The NTA explains the following regarding people receiving employment income from a single source:
A person who receives employment income from a single source, where the entirety of that income is subject to withholding tax, and whose total of various types of income (excluding employment income and retirement income) exceeds ¥200,000.
Source: Employees Required to File a Final Tax Return | National Tax Agency (NTA)
One point to note here is that the ¥200,000 threshold is evaluated based on "income," not "revenue." It's necessary to consider not just the amount of staking reward revenue, but also gains from selling crypto assets, gains from exchanging one crypto asset for another, and gains from using crypto assets for payment.
For example, even if staking rewards amount to ¥150,000, if you also have ¥100,000 in gains from selling another crypto asset, your total crypto-related income becomes ¥250,000. Even for an employee who has undergone year-end tax adjustment, if income other than employment and retirement income exceeds ¥200,000 in this way, a tax return may be required.
A tax return may be required even below ¥200,000
The ¥200,000 threshold for employees is a benchmark specifically for income tax final returns. This does not mean that below ¥200,000 there is nothing to do at all.
For example, if you are filing a return for another reason — such as claiming a medical expense deduction, filing for a mortgage tax deduction in its first year, or filing a furusato nozei (hometown tax) donation deduction — you may need to include crypto-related income in that filing as well.
In addition, even if an income tax return is not required, a municipal (resident) tax filing may still be required. Because guidance on resident tax varies by municipality, it's important to check the guidance from your local municipality.
For this reason, even if your income from staking rewards is ¥200,000 or below, whether an income tax return or a resident tax filing is required needs to be confirmed based on your individual circumstances.
The income category for staking rewards is not always limited to miscellaneous income
Income from an individual's crypto asset transactions is, in principle, classified as miscellaneous income. However, depending on the scale of revenue and the state of bookkeeping records maintained, the classification of the income category can change.
In particular, anyone who continuously engages in crypto asset transactions — including not just staking rewards but also trading and lending — needs to correctly understand how the income category is determined.
In principle, classified as miscellaneous income
For a typical individual holding crypto assets and receiving staking rewards, that income is, in principle, treated as miscellaneous income. When classified as miscellaneous income, it is combined with employment income and other income, and subject to aggregate taxation.
Miscellaneous income is calculated by subtracting deductible (necessary) expenses from the revenue amount. For staking rewards, the market value at the time the reward is received becomes the revenue, from which any applicable deductible expenses are subtracted.
However, what qualifies as a deductible expense depends on the nature of the expenditure and its relationship to the crypto asset transaction. If it's difficult to judge whether something can be treated as an expense, it is safer to confirm with a tax professional or the tax office.
If revenue exceeds ¥3,000,000, the state of your bookkeeping records also matters
The NTA has specified that, for a year in which revenue from crypto asset transactions exceeds ¥3,000,000 (roughly USD 20,000 at a reference rate of approximately ¥150/USD; actual thresholds are set in yen), whether the income is classified as "business income" or "miscellaneous income" depends on whether bookkeeping records have been maintained.
Bookkeeping records maintained | In principle, "business income" |
|---|---|
Bookkeeping records not maintained | In principle, "miscellaneous income (miscellaneous income related to business activity)" |
That said, maintaining bookkeeping records does not automatically mean the income will be treated as business income. Even where bookkeeping records exist, if the crypto asset transactions are not deemed to have a for-profit business character, whether they qualify as business income is determined on a case-by-case basis.
Even where bookkeeping records are maintained, in cases such as where the crypto asset transactions are not deemed to have a for-profit business character, whether the income qualifies as business income is to be judged on a case-by-case basis.
Source: Tax Treatment of Crypto Assets | National Tax Agency (NTA)
Please note that the income category determination can change depending on the revenue amount and the state of your bookkeeping records.
Information to confirm when calculating staking rewards
When thinking about tax on staking rewards, it's important not just to understand the rules, but also to actually be in a position to calculate the figures. In particular, because staking rewards can be distributed multiple times, it can become difficult to organize everything if you have not kept a record of receipts.
Here, we explain the main information to confirm when calculating staking rewards.
Confirm the date, quantity, and market value at the time each reward was received
When you receive a staking reward, you need to confirm at least the date received, the quantity of crypto assets, and the market value at that time. Without this information, it becomes difficult to calculate the revenue amount at the time the reward was received.
If you're using staking through an exchange (order-matching marketplace), you may be able to check your transaction history or reward history there. Domestic Crypto Asset Exchange Service Providers may also issue an annual transaction report.
On the other hand, if you're using an overseas exchange, a self-custody wallet, or a DeFi service, you may need to obtain and organize your transaction history yourself. Because the retention period and export format for history can vary by service, it's a good idea to save your data regularly, rather than waiting until tax filing season.
If sold, confirm the acquisition cost and the sale price
If you sell crypto assets received as staking rewards, the profit is calculated by subtracting the acquisition cost from the sale amount. The acquisition cost refers to the amount it cost to acquire that crypto asset. For staking rewards, the market value at the time the reward was received forms the basis for considering the acquisition cost.
For example, if you receive a staking reward worth ¥200,000 in crypto assets, and later sell it for ¥300,000, a simple calculation would treat the ¥100,000 difference (¥300,000 minus ¥200,000) as the profit. In this case, the ¥200,000 at the time of receipt is subject to income calculation as a staking reward, and the ¥100,000 increase at the time of sale is calculated separately.
However, if you already hold the same type of crypto asset from earlier purchases, the calculation above may not apply as simply. This is because the acquisition cost of crypto assets is calculated by pooling together your holdings of the same type of crypto asset and using either the total average method or the moving average method.
The NTA presents the total average method or moving average method as valuation methods for the acquisition cost of crypto assets, and also explains that if you do not file a notification of your chosen method, the total average method is used by default. For details, please check the NTA's "Tax Treatment of Crypto Assets and Related Calculation Statements."
Also organize expenses, such as fees, that may qualify as deductible expenses
When calculating crypto-related income, it's also necessary to organize expenses that may qualify as deductible expenses. The NTA presents, as an example, that in calculating income from the sale of crypto assets, the cost of the assets disposed of and fees paid at the time of sale can qualify as deductible expenses.
It also explains that costs such as internet connection fees and computer equipment can be included as deductible expenses, but only to the extent they are recognized as directly necessary expenditures for the sale of crypto assets.
That said, internet and computer costs are often also used for personal life or other work. As a result, when recording these as expenses, you should not treat the entire amount as deductible — you must clearly apportion the portion directly necessary for your crypto asset transactions.
The NTA's calculation statements and filing tool can be used for your tax return
When filing crypto-related income, including staking rewards, you may be able to use materials and tools published by the NTA. Two representative resources are the crypto asset calculation statement and the Final Tax Return Preparation Corner (kakutei shinkoku sakusei kona).
Use the annual transaction report and crypto asset calculation statement to calculate your income
If you use a domestic Crypto Asset Exchange Service Provider, you may be able to obtain an annual transaction report. Using that as a basis to prepare a crypto asset calculation statement can simplify calculating your income.
However, the extent to which staking rewards are reflected in the annual transaction report can vary depending on the exchange or service you use. Rather than relying on the annual transaction report alone, it's important to also check your staking reward history and wallet deposit/withdrawal history.
The NTA's "Tax Treatment of Crypto Assets and Related Calculation Statements" page publishes FAQs and calculation statements related to crypto assets. When preparing for your tax return, it's a good idea to start by checking this page.
You can prepare your return using the Final Tax Return Preparation Corner
After calculating your income amount, you can use the NTA's Final Tax Return Preparation Corner to prepare your return. By entering amounts and other information as guided on screen, you can prepare and submit your return from home.
The NTA has also published "Filing a Final Tax Return by Smartphone (Crypto Assets Edition)" as a sample for employees who have already undergone year-end tax adjustment and are filing for crypto asset transactions. If you're filing from a smartphone, it's worth checking as a reference.
Points to note regarding tax on staking rewards
With tax on staking rewards, attention is needed not only to the market value at the time of receipt, but also to how losses are treated and how you manage your transaction history. In particular, crypto assets are treated differently from stocks and mutual funds under the tax rules in some respects.
In some cases, losses cannot be offset against employment income and other income
When crypto-related income is classified as miscellaneous income, it's important to note that even if you incur a loss, it cannot be offset against other income such as employment income.
Losses arising in the calculation of miscellaneous income cannot be offset against the amount of other income.
For example, even if you incur a loss from selling crypto assets, that does not necessarily mean it can be offset against your employment income. Applying the same logic as loss offsetting or loss carryforward deductions for stock investments can lead to misunderstanding — under current rules, losses on crypto assets can only be offset within miscellaneous income and cannot be offset against other income categories such as employment income.
Using multiple exchanges or overseas services tends to make calculation more complex
Calculating staking rewards tends to become more complex the more services you use. If you only use a domestic exchange (order-matching marketplace), it may be easier to organize things using the annual transaction report or transaction history.
On the other hand, if you use overseas exchanges, a self-custody wallet, or DeFi services, you may need to gather your reward history and deposit/withdrawal history yourself. When you hold crypto assets across multiple locations, it also becomes harder to consolidate the acquisition cost and gain/loss calculations for the same crypto asset.
Staking rewards can occur many times, even in small amounts. If you don't record the quantity and market value for each time you received a reward, calculating everything at tax-filing time can become difficult.
If you're unsure, consult a tax professional
With tax on staking rewards, there are situations that require individual judgment — the income category, deductible expenses, whether a resident tax filing is required, and how to organize things if you use overseas services.
In particular, if your crypto-related revenue is large, if you maintain bookkeeping records, or if you engage in transactions continuously as a business, the question of whether the income is miscellaneous income or business income can become an issue.
In such cases, it's important not to rely solely on this article for judgment, but to consult a tax professional or the tax office.
Summary: Keep records of staking rewards starting from the point you receive them
Staking rewards can be subject to income calculation based on the market value of the crypto asset at the time you receive it. Even if you have not converted the crypto assets into yen, you may still need to treat them as income at the point they are acquired.
In addition, if you later sell crypto assets received as staking rewards and the price has risen, you may also need to calculate the increase in value as income.
Profit from an individual's crypto asset transactions is, in principle, classified as miscellaneous income. However, depending on the revenue amount, the state of bookkeeping records, and the actual nature of the transactions, the income category determination can change, so caution is needed.
For this reason, if you use staking, it's important to keep track of the following:
- The date the reward was received
- The quantity
- The market value at the time of acquisition
- The sale price
- Fees
If you're unsure, it's a good idea to consult a tax professional as needed.
This article is for informational purposes only and does not constitute financial or investment advice. Please consult a qualified professional before making investment decisions.
