Hyperliquid tax in Japan

Updated 19 October 2026 · General information, not tax advice

Japan taxes individuals by calendar year. Your 2026 final return (確定申告) is filed from 16 February to 15 March 2027. Hyperliquid and papertrade results are generally miscellaneous income (雑所得), added to your other income and taxed at progressive rates.

New: papertax's Japanese defaults are awaiting review by a local tax professional. Treat them as a starting point for your tax accountant (税理士).

Perps are generally miscellaneous income

The National Tax Agency's crypto FAQ says gains and losses on crypto margin trades (証拠金取引), which perps closely resemble, are taxed with your other income at progressive rates, not under the 20% separate taxation for futures (FAQ 2-12). For most traders that's miscellaneous income. If your crypto revenue for the year is over ¥3 million and you keep records, it may be business income (事業所得) instead (FAQ 2-2), with different loss rules; ask your tax accountant. By analogy with FAQ 2-13, each result counts in the year the position closes, so an open position at 31 December counts in the year you close it.

Losses don't carry forward

As miscellaneous income, a loss can reduce other miscellaneous income in the same year, such as crypto gains, but it can't reduce your salary or other kinds of income (FAQ 2-11) and can't be carried forward. That makes the year a position closes matter more than in most countries.

Funding and fees

The FAQ doesn't cover funding payments. FAQ 2-13 keeps interest on margin trades inside the trade's result, and papertax does the same with funding; it's also commonly treated as miscellaneous income when received and a necessary expense when paid. papertax flags funding for review. Trading fees are necessary expenses.

Spot trades, swaps and average cost

Selling crypto, or swapping one token for another, is a disposal (FAQ 1-3). Cost uses the total-average method (総平均法) unless you notified your tax office that you use moving average (移動平均法). papertax shows Hyperliquid's average-cost result as an estimate and exports the trades so your tax software applies your method across all your wallets.

Staking, rewards and airdrops

Staking rewards are miscellaneous income at market value when received (FAQ 1-7).
Referral rewards and vault leader commissions are recorded as miscellaneous income.
Airdrops aren't covered in the FAQ; they're usually treated as income at market value when received. papertax lists them for you to value.
Liquid staking and vaults, such as HYPE to kHYPE, have no specific guidance and may be a disposal like any token swap. Flagged for review.

Yen values and USDC

papertax reports in US dollars. The NTA expects yen at the TTM rate for the day of each transaction. USDC is likely an electronic payment instrument (電子決済手段) rather than a crypto asset under Japanese law, so converting it to yen may give a separate currency gain or loss; ask your tax accountant how to treat it.

The new 20% rate

A 20% separate rate for crypto, with three-year loss carry-forward, was enacted in 2026 but isn't in force yet. It covers specified crypto, crypto derivatives and ETFs traded with registered Japanese dealers, and applies from 1 January after the related law takes effect: 2027 at the earliest, more likely 2028. It isn't expected to cover Hyperliquid or papertrade, and your 2025 and 2026 results stay under the current rules.

Salaried employees

If you have one employer who does your year-end adjustment, your salary is ¥20 million or less, and your other income, including these results, is ¥200,000 or less, you may not need to file a national return. You still need to declare it for resident tax, and it must be included if you file anyway, for example to claim medical expenses.

How to get your numbers

Paste your wallet at papertax.xyz/tax and choose Japan · 2026 or 2025.
Export for Koinly or Crypto Tax Calculator, or the audit pack for your tax accountant. Cryptact also imports Hyperliquid's own trade and funding history.

Questions

How are Hyperliquid perps taxed in Japan?

Generally as miscellaneous income (雑所得) under comprehensive taxation, in the year each position closes; the 20% separate rate for futures doesn't apply (NTA crypto FAQ 2-12). Above ¥3 million of crypto revenue with records kept, it may be business income instead.

Can I carry forward a Hyperliquid loss in Japan?

Not for 2025 or 2026. A loss only reduces other miscellaneous income in the same year (NTA crypto FAQ 2-11).

Does the new 20% crypto rate apply to Hyperliquid?

It isn't in force yet (2027 at the earliest, likely 2028), and it covers crypto, derivatives and ETFs traded with registered Japanese dealers, so it isn't expected to cover Hyperliquid or papertrade.