Is it true that "profits and losses in a NISA account cannot be offset against those in a specified account or a general account"?

“Profits made in a NISA account are tax-free, but they cannot be offset against losses in a specified account or a general account. Conversely, losses in a NISA account cannot be offset against profits in a specified account or a general account.” Have you heard this on investment-related social media or videos?

Four tax terms to know first

Here are plain-language explanations of the terms used in this article.

• NISA (a “Nippon Individual Savings Account”) = A small-amount investment scheme under which profits from shares, investment trusts, and the like are tax-free.
• Offsetting profits and losses (sonneki tsūsan) = A mechanism that offsets profits against losses to reduce the profit on which tax is calculated.
• Carry-forward deduction (kurikoshi kōjo) = A mechanism that carries a loss over to the following year or later so that it can be offset against future profits.
• Specified account (tokutei kōza) and general account (ippan kōza) = Ordinary trading accounts that are taxable. Profits in them are taxed.

Conclusion

Our verdict: “True.” Both sentences of the rumor are true. Below, we look at the evidence step by step.

NISA profits are tax-free

NTA Tax Answer No.1535 explains NISA from Reiwa 6 (2024) onward as follows.

令和6年以降のNISAでは、18歳以上（口座開設の年の1月1日現在）の居住者等が、非課税口座に係るつみたて投資枠（特定累積投資勘定）および成長投資枠(特定非課税管理勘定）で取得した上場株式等について、その配当等やその上場株式等を売却したことにより生じた譲渡益が、非課税となります。［3］

Reference translation (unofficial): Under NISA from Reiwa 6 (2024) onward, for listed shares, etc. acquired by a resident, etc. aged 18 or over (as of January 1 of the year the account is opened) through the tsumitate investment frame (specified cumulative investment account) and the growth investment frame (specified tax-exempt management account) of a tax-exempt account, the dividends, etc. and the transfer gains arising from selling those listed shares, etc. are tax-free.

Because the wording is stiff, here is what it means. Shares and investment trusts bought in a NISA account (a tax-exempt account) are not taxed, whether the gain comes from dividends or from selling at a profit. The annual investment limit is ¥1,200,000 for the tsumitate investment frame and ¥2,400,000 for the growth investment frame. The tax-exempt holding limit is ¥18,000,000［3］.

This explains the first sentence of the rumor. Losses in a specified account or a general account are subtracted from the profits that enter the tax calculation (taxable profits). NISA profits are tax-free and do not enter the tax calculation, so there is nothing to subtract the losses from［3］.

Then how are losses on the NISA side treated? This is the second sentence of the rumor.

NISA losses are treated as “nonexistent”

No.1535 explains how losses in a NISA account are handled, as follows.

非課税口座で取得した上場株式等を売却したことにより生じた損失はないものとみなされます。したがって、その上場株式等を売却したことにより生じた損失について、特定口座や一般口座で保有する上場株式等の配当等やその上場株式等を売却したことにより生じた譲渡益との損益通算や、繰越控除をすることはできません（令和5年までのNISAおよびジュニアNISAにおいても同様です。）［3］

Reference translation (unofficial): A loss arising from selling listed shares, etc. acquired in a tax-exempt account is deemed not to exist. Therefore, for a loss arising from selling those listed shares, etc., it is not possible to offset it against the dividends, etc. on listed shares, etc. held in a specified account or a general account or against transfer gains arising from selling such listed shares, etc., and it is not possible to claim a carry-forward deduction (the same applies to NISA up to Reiwa 5 (2023) and Junior NISA).

In plain terms: even if you sell shares in a NISA account at a loss, the loss is treated as “nonexistent” in the tax calculation. You cannot offset it against profits or dividends in a specified account or a general account, and you cannot carry it forward to the following year or later.

The law behind this explanation is Article 37-14, paragraph 2 of the Act on Special Measures Concerning Taxation.

非課税上場株式等管理契約、非課税累積投資契約又は特定非課税累積投資契約に基づく非課税口座内上場株式等の譲渡による収入金額が当該非課税口座内上場株式等の所得税法第三十三条第三項に規定する取得費及びその譲渡に要した費用の額の合計額又はその譲渡に係る必要経費に満たない場合におけるその不足額は、所得税に関する法令の規定の適用については、ないものとみなす。［1］

Reference translation (unofficial): Where the amount of revenue from the transfer of listed shares, etc. in a tax-exempt account under a tax-exempt listed shares, etc. management contract, a tax-exempt cumulative investment contract, or a specified tax-exempt cumulative investment contract falls short of the total of the acquisition cost of those listed shares, etc. in the tax-exempt account as provided in Article 33, paragraph 3 of the Income Tax Act and the amount of expenses incurred for the transfer, or of the necessary expenses relating to the transfer, that shortfall is deemed not to exist for the purpose of applying the provisions of laws and regulations concerning income tax.

(Excerpt from the provisions on the transfer of shares, etc. in a NISA account)

“Deemed not to exist” (nai mono to minasu) is legal terminology. In the income tax calculation, it means the loss is treated as if it had never occurred. That is why it cannot be used either to offset profits in a specified account or to be carried forward to the following year or later.

Comparison: losses in a specified account or a general account can be used

Even for the same kind of share loss, a taxable account gives the loss a use. NTA Tax Answer No.1474 explains “transfer losses on listed shares, etc.” in a specified account or a general account, as follows.

上場株式等を金融商品取引業者等を通じて譲渡したこと等により生じた譲渡損失の金額（以下「上場株式等に係る譲渡損失の金額」といいます。）は、確定申告により、その年分の上場株式等の配当等に係る利子所得の金額および配当所得の金額（上場株式等に係る配当所得については、申告分離課税を選択したものに限ります。以下「上場株式等に係る配当所得等の金額」といいます。）と損益通算することができます。また、損益通算してもなお控除しきれない損失の金額については、その年分の翌年以後3年間にわたり、確定申告により、上場株式等に係る譲渡所得等の金額および上場株式等に係る配当所得等の金額から繰越控除することができます。［4］

Reference translation (unofficial): The amount of a transfer loss arising from transferring listed shares, etc. through a financial instruments business operator, etc. (hereinafter the “amount of transfer loss on listed shares, etc.”) can be offset, through a final tax return, against the amount of interest income and the amount of dividend income relating to dividends, etc. on listed shares, etc. for that year (for dividend income on listed shares, etc., limited to income for which separate taxation upon filing a return has been chosen; hereinafter the “amount of dividend income, etc. on listed shares, etc.”). Furthermore, a loss that still cannot be fully deducted after the offsetting can be deducted by the carry-forward deduction, through a final tax return, from the amount of transfer income, etc. on listed shares, etc. and the amount of dividend income, etc. on listed shares, etc. over the 3 years following that year.

In plain terms: if you sell shares in a taxable account at a loss, you can offset the loss against the transfer gains and dividends on listed shares, etc. of the same year (for dividends, only those for which you chose separate taxation upon filing a return). A loss that cannot be fully offset can be carried forward for the 3 years following that year. The basis for this is Article 37-12-2 of the Act on Special Measures Concerning Taxation［2］.

Here is a side-by-side comparison of how losses are treated.

Pitfall 1: Even if you file a tax return, NISA losses cannot be used

Some people think, “I have a loss, so I should just file a tax return anyway, right?” But No.1474 contains the following note.

（注3）　非課税口座（NISA）及び未成年者口座（ジュニアNISA）内の上場株式等を譲渡したことにより生じた譲渡損失については、損益通算及び繰越控除はできません。［4］

Reference translation (unofficial): (Note 3) For a transfer loss arising from transferring listed shares, etc. in a tax-exempt account (NISA) or a minor’s account (Junior NISA), offsetting profits and losses and the carry-forward deduction are not possible.

A tax return is the procedure for making use of transfer losses in taxable accounts［4］. Losses in a NISA account do not become an item in the return’s calculation, so filing a return will not bring you anything back.

Pitfall 2: The same applies to the old NISA and Junior NISA

The explanation in No.1535 says “(the same applies to NISA up to Reiwa 5 (2023) and Junior NISA)“［3］. The note in No.1474 also treats Junior NISA the same way［4］. In other words, even if the tax-exempt period or the name of the frame is different, losses are treated as “nonexistent.” Losses made in the old NISA (general NISA and tsumitate NISA) also cannot be used.

What to do

Summary

“Profits and losses in a NISA account cannot be offset against those in a specified account or a general account” is true. It becomes clear if you think about it separately according to which direction you want to offset the loss.

• Losses in a specified account or a general account cannot be offset against NISA profits. NISA profits are tax-free and do not enter the tax calculation［3］.
• NISA losses are “deemed not to exist,” so they cannot be offset against profits in a specified account or a general account, and they cannot be carried forward to the following year or later［3］［1］.

The old NISA and Junior NISA are treated the same way. Compare accounts on both sides: whether profits are tax-free, and whether losses can be used.

Sources

• ［1］Act on Special Measures Concerning Taxation, Article 37-14 (e-Gov Law Search, Japanese)　Checked: 2026-10-09
• ［2］Act on Special Measures Concerning Taxation, Article 37-12-2 (e-Gov Law Search, Japanese)　Checked: 2026-10-09
• ［3］NTA Tax Answer No.1535 “The NISA system” (Japanese)　Checked: 2026-10-09
• ［4］NTA Tax Answer No.1474 “Offsetting and carry-forward deduction of transfer losses on listed shares, etc.” (Japanese)　Checked: 2026-10-09

Note: This article is based on laws and official information as of October 9, 2026. It is a translation of the Japanese original; if the two differ, the Japanese version prevails. Quotations from laws and official sources are given in the original Japanese, followed by unofficial reference translations. Sources are limited to laws (e-Gov) and official pages of the NTA, all in Japanese. If a correction is needed after publication, a correction record will be added at the end of this article (Correction policy).