Photo: Clement Souchet / Unsplash
Photo: Clement Souchet / Unsplash
- 2 min read

Tokyo to Introduce 3 Percent Lodging Tax From 2027

It's a shift away from the fixed-fee system

Tokyo is planning a change to the way it collects its accommodation tax, which is something future visitors may want to keep in mind when budgeting upcoming trips. The Tokyo Metropolitan Government has announced that it intends to move from the current fixed-fee system to a percentage-based tax set at 3 percent of the room charge, with the new system scheduled to begin in fiscal 2027. The aim is to better match the tax to what guests are actually paying, especially as more travelers choose higher-end hotels.

At present, anyone staying in accommodation priced under 10,000 yen per person per night is exempt from the tax. Guests paying between 10,000 and under 15,000 yen are charged 100 yen per night, while those staying in rooms priced at 15,000 yen or more pay a fixed 200 yen. Under the new system, the exemption threshold will rise slightly to 13,000 yen. Any stay priced above that amount will be taxed at 3 percent of the room rate, rather than a fixed yen charge.

Staying somewhere luxe, like the Aman Tokyo? The switch to a percentage based system might be noteworthy for you.
Staying somewhere luxe, like the Aman Tokyo? The switch to a percentage based system might be noteworthy for you. (Photo: Marek Okon / Unsplash)

The scope of the tax will also widen. In addition to standard hotels and traditional ryokan, capsule hotels and minpaku-style private lodgings will also fall under the new tax rules. This reflects the growing variety of accommodation options now used by both domestic and international travelers.

Before the change can take effect, the proposal still needs approval from the Tokyo Metropolitan Assembly and the national internal affairs minister. Tokyo first introduced its accommodation tax in 2002, and the revenue is generally used to support tourism-related services and infrastructure across the city.

For inbound travelers, the actual impact will depend on the type of accommodation they choose. Budget travelers staying in lower-priced properties may see little to no change, while those opting for mid-range or luxury hotels are likely to notice a slightly higher nightly charge than under the current system. Even so, the amount remains modest by international standards and is intended to help Tokyo continue improving visitor services as it welcomes growing numbers of overseas travelers in the years ahead.

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