An encoder that encodes a current block in a picture includes circuitry and a memory coupled to the circuitry. The circuitry, in operation: selects at least one transform basis from among candidates for a transform basis which include a basis of a type-II discrete cosine transform (DCT-II) and at least one of a basis of a type-IV discrete cosine transform (DCT-IV) or a basis of a type-IV discrete sine transform (DST-IV); and transforms prediction error values of the current block, using the at least one transform basis selected. When the size of the current block is greater than a threshold size, the circuitry selects at least one transform basis after excluding at least one of the basis of the DCT-IV or the basis of the DST-IV from the candidates. The threshold size is at most half a maximum size to which the DCT-II is applicable.