What is the capital gains tax rate on index funds in Japan?

The headline capital gains tax rate in Japan is 20.315%. Capital gains tax including reconstruction tax. Allowances, holding periods and tax-advantaged accounts can change what you actually pay.

How much tax would I pay on a $100,000.00 gain in Japan?

At the headline rate of 20.315%, a $100,000.00 gain would attract roughly $20,315.00 in capital gains tax, leaving $79,685.00 before any allowances.

How does Japan compare with the rest of Asia?

The average headline capital gains rate across Asia in our dataset is 13.1%, so Japan at 20.315% is above the regional average.

Index Fund Taxes in Japan

Investors in Japan face a headline capital gains rate of 20.315% on index funds and ETFs. Capital gains tax including reconstruction tax.

Headline rate: 20.315%
Tax on a $100,000.00 gain: $20,315.00
Asia average: 13.1%

What this means for your returns

Tax applies to your gain, not your whole balance. If you invest and your portfolio grows by $100,000.00, a 20.315% rate leaves you with $79,685.00 of that growth before allowances.

Because the tax is usually triggered when you sell, holding for longer defers it and lets the untaxed amount keep compounding. That deferral is one of the structural advantages of buy-and-hold index investing over frequent trading.

Run your own projection with Japan tax applied →

How Japan compares in Asia

Capital gains tax rates across Asia
Country	Capital gains rate
Singapore	0%
Hong Kong	0%
Taiwan	0%
Malaysia	0%
Thailand	15%
Philippines	15%
China	20%
India	20%

Frequently Asked Questions

Headline statutory rates as of 2025-01-01, collected from national tax authority publications. Rates exclude allowances, exemptions, tax-advantaged accounts, local surcharges and treaty relief, and change frequently. Confirm your position with a tax professional in Japan.