What is the capital gains tax rate on shares in Japan?

Gains on listed shares are taxed at a flat 20.315 percent. This is made up of 15 percent national income tax, 5 percent local inhabitant tax, and a 0.315 percent special reconstruction surtax that runs through 2037. The rate is the same regardless of how long you held the shares.

How is property capital gains tax different?

Property gains depend on the holding period. If you owned the property for five years or less as of 1 January in the year of sale, the short-term rate of 39.63 percent applies. If you owned it for more than five years, the long-term rate of 20.315 percent applies. The taxable gain is the sale price minus acquisition and selling costs.

What is the ¥30 million primary residence deduction?

When you sell your own home, Japan allows a special deduction of up to ¥30 million from the capital gain before tax is calculated, provided conditions are met. This often eliminates the tax entirely on a modest home sale. This tool applies the deduction when you mark the property as your primary residence.

How is the taxable gain calculated?

The gain is the sale proceeds minus the acquisition cost minus selling expenses such as agent fees and transfer taxes. For property, any applicable primary-residence deduction is then subtracted. If the result is zero or negative there is no tax, and a loss on listed shares can often be offset against other share gains.

Does this include the reconstruction surtax?

Yes. The headline 20.315 percent figure already bundles the 0.315 percent special income tax for reconstruction, which applies to the national tax portion through 2037. The short-term property rate of 39.63 percent likewise includes its income, local, and reconstruction components, so the rates shown are the full combined rates.

Japan Capital Gains Tax Calculator

Email me this result

Get this tool's output sent to your inbox, plus one useful tool a week. No spam, unsubscribe any time.

Japan taxes capital gains differently depending on what you sell. Listed shares carry a flat combined rate, while real property is split into short- and long-term rates and benefits from a large primary-residence deduction. This calculator applies the right rule to estimate your tax and net proceeds.

How it works

The taxable gain is computed first, then the appropriate rate is applied:

gain        = sale price − acquisition cost − selling expenses
shares       → tax = max(gain, 0) × 20.315%
property ≤5yr → tax = max(gain, 0) × 39.63%   (short-term)
property >5yr → tax = max(gain, 0) × 20.315%  (long-term)
primary home → subtract up to ¥30,000,000 from the gain first
net proceeds = sale price − acquisition cost − expenses − tax

The combined rates already include national income tax, local inhabitant tax, and the special reconstruction surtax, so no further additions are needed.

Example and notes

Selling listed shares bought for ¥4,000,000 at ¥6,000,000 gives a ¥2,000,000 gain and ¥406,300 of tax at 20.315 percent. Selling a primary home held eight years for a ¥20,000,000 gain falls entirely within the ¥30 million deduction, so no tax is due. The same home sold within five years without the deduction would face the 39.63 percent short-term rate. Holding period is measured to 1 January of the sale year, so timing a sale into the following year can move you from short-term to long-term treatment.