To provide a transistor having a favorable electric characteristics and high reliability and a display device including the transistor. The transistor is a bottom-gate transistor formed using an oxide semiconductor for a channel region. An oxide semiconductor layer subjected to dehydration or dehydrogenation through heat treatment is used as an active layer. The active layer includes a first region of a superficial portion microcrystallized and a second region of the rest portion. By using the oxide semiconductor layer having such a structure, a change to an n-type, which is attributed to entry of moisture to the superficial portion or elimination of oxygen from the superficial portion, and generation of a parasitic channel can be suppressed. In addition, contact resistance between the oxide semiconductor layer and source and drain electrodes can be reduced.