Japan Capital Gains Tax
Detailed capital gains tax rates and rules for Japan in 2026.
Capital gains on listed stocks and securities are taxed at a flat combined rate of 20.315% (15.315% national income tax including reconstruction surtax, plus 5% local inhabitant tax). This applies uniformly regardless of holding period. Gains on real estate are taxed at different rates depending on the holding period: short-term gains (property held 5 years or less) are taxed at approximately 39.63%, while long-term gains (held more than 5 years) are taxed at approximately 20.315%.
Short-Term Rate
20.3%
Long-Term Rate
20.3%
Standard Rate
20.3%
Exemptions
- Primary residence exclusion: up to ¥30 million exemption on gains from selling a principal residence held for more than 10 years (reduced rates apply)
- NISA (Nippon Individual Savings Account): capital gains on investments held in NISA accounts are tax-exempt
- Small-lot listed share exemptions under certain qualifying conditions
- Certain reorganization and exchange transactions qualifying for tax-deferred treatment
How Japan Capital Gains compares
Japan’s capital gains tax rate of 20% is the 43rd highest of 203 countries TaxAtlas tracks, above the global average of 13.8% and Asia’s regional average of 13.9%.
