Overseas FX Tax Quick Table: Estimated Income Tax and Resident Tax by Profit (Japan)
Wondering how much tax you would pay if you made ¥1,000,000 in overseas FX profit?
As an explanation for residents of Japan, the National Tax Agency of Japan says that when profits count as miscellaneous income, they are added to other income and taxed at progressive rates. This article shows estimates by profit under simplified assumptions.
Actual tax can differ greatly depending on income deductions and other income. Confirm the final judgment with a tax accountant or the tax office.
In short: comprehensive taxation, where the rate rises as profit grows
- Miscellaneous income is added to other income and taxed at progressive rates (5 to 45%) (National Tax Agency of Japan, No. 1500 and No. 2260)
- In a simplified case with no other income and only the basic deduction, total tax is about ¥60,000 on a ¥1M profit and about ¥910,000 on ¥5M
- If you have salary or other income, the same profit is stacked on top and taxed from a higher bracket
- The figures in the table are estimates. Confirm the final judgment with a tax accountant or the tax office
Income tax quick calculation table (National Tax Agency of Japan, No. 2260)
| Taxable income | Rate | Deduction |
|---|---|---|
| ¥1,000 to ¥1,949,000 | 5% | ¥0 |
| ¥1,950,000 to ¥3,299,000 | 10% | ¥97,500 |
| ¥3,300,000 to ¥6,949,000 | 20% | ¥427,500 |
| ¥6,950,000 to ¥8,999,000 | 23% | ¥636,000 |
| ¥9,000,000 to ¥17,999,000 | 33% | ¥1,536,000 |
| ¥18,000,000 to ¥39,999,000 | 40% | ¥2,796,000 |
| ¥40,000,000 or more | 45% | ¥4,796,000 |
Taxable income is your profit minus income deductions. Profit from miscellaneous income is added to your other income before the calculation.
Estimated income tax and resident tax by profit
| Profit (miscellaneous income) | Taxable income | Income tax + reconstruction tax | Resident tax | Total | Share of profit |
|---|---|---|---|---|---|
| ¥500,000 | ¥0 | ¥0 | ¥0 | ¥0 | 0% |
| ¥1,000,000 | ¥420,000 | approx. ¥21,000 | approx. ¥42,000 | approx. ¥63,000 | approx. 6.3% |
| ¥3,000,000 | ¥2,420,000 | approx. ¥148,000 | approx. ¥242,000 | approx. ¥389,000 | approx. 13.0% |
| ¥5,000,000 | ¥4,420,000 | approx. ¥466,000 | approx. ¥442,000 | approx. ¥908,000 | approx. 18.2% |
| ¥10,000,000 | ¥9,420,000 | approx. ¥1,606,000 | approx. ¥942,000 | approx. ¥2,548,000 | approx. 25.5% |
Calculation steps for a ¥5,000,000 profit
- 1
Find the taxable income
Subtract the ¥580,000 basic deduction from the ¥5,000,000 profit to get ¥4,420,000.
- 2
Find the income tax with the quick table
¥4,420,000 x 20% - ¥427,500 gives ¥456,500.
- 3
Add the special reconstruction income tax
Adding 2.1% to ¥456,500 gives about ¥466,000.
- 4
Estimate the resident tax
¥4,420,000 x 10% is about ¥442,000. The total comes to about ¥908,000.
Cautions on reconstruction tax, resident tax and other income
- Special reconstruction income tax was calculated by multiplying the income tax amount by 2.1% (this may change depending on the year)
- Resident tax was estimated at the standard 10% income-based rate. The per-capita levy and adjustment deduction are not included
- If you have salary, the profit is stacked on that income, so the same profit leads to more tax
- Deductions such as social insurance premiums and the spouse deduction can reduce taxable income
- Besides tax, other burdens such as insurance premiums may change
Cautions when including cashback in the calculation
We cannot say definitively whether cashback should be included in trading profit and loss or treated as separate income. If you include it in profit, read the table above using the added amount.
You can also enter your profit in XB's simple tax estimate tool (open it from the tools list) for an estimate. The figures in the table are a guide and do not guarantee the amount of tax you will pay.
- 1
Total your annual profit and loss
Put trading profit and loss, expenses and cashback together by year.
- 2
Check your other income and deductions
Check your salary and various deductions on documents such as your withholding tax slip.
- 3
Confirm with a tax accountant
Consult them with your records about the classification and the tax calculation.
Check how taxation works and a guide to when a tax return is needed.
Check the tax on cashbackFAQ
Q.How much tax is due on a ¥1,000,000 overseas FX profit?
Under the simplified case of no other income and only the ¥580,000 basic deduction, the estimate is about ¥21,000 in income tax and special reconstruction income tax and about ¥42,000 in resident tax, for a total of about ¥63,000. The actual amount changes with other income and deductions, so confirm with a tax accountant or the tax office.
Q.What is the income tax rate on overseas FX?
In the National Tax Agency of Japan's No. 2260, income tax rates range across 7 brackets from 5% to 45% depending on taxable income. If overseas FX profit counts as miscellaneous income, it is added to other income and calculated together. Please confirm the classification with a tax accountant or the tax office.
Q.How much is the resident tax?
The quick table in this article estimates it by multiplying taxable income by the standard 10% income-based rate. The per-capita levy and adjustment deduction are not included. Please check the actual amount with your city or ward office.
Sources
- National Tax Agency of Japan, Tax Answer No. 2260: Income Tax Rates (checked 2026-10-22)
- National Tax Agency of Japan, Tax Answer No. 1500: Miscellaneous Income (checked 2026-10-22)
- National Tax Agency of Japan, Tax Answer No. 1199: Basic Deduction (checked 2026-10-22)
This article is for information purposes only and is not investment advice. Conditions may change, so please check each broker's official page for the latest information. Offshore FX and CFD trading carries a risk of losses exceeding your principal.
