Tokyo to Replace Lodging Tax With 3% Charge From April 2027
Tokyo will replace its current flat-rate lodging tax with a percentage-based system for stays on or after April 1, 2027. Under the Tokyo Metropolitan Government’s plan, guests paying ¥13,000 or more per person per night will be charged a tax equal to 3% of the room rate.
However, the change will not increase costs for every guest. The tax exemption threshold will rise from the current ¥10,000 to ¥13,000, expanding the range of lower-priced stays that are tax-exempt.
Key Changes to Tokyo’s Lodging Tax
Flat Rate Replaced With a 3% Percentage-Based Tax
Under the current system, Tokyo charges ¥100 per person per night for stays costing ¥10,000 or more but less than ¥15,000, and ¥200 for stays costing ¥15,000 or more. Accommodations priced below ¥10,000 are exempt.
Under the revised system, stays costing less than ¥13,000 per person per night will remain tax-exempt, while those priced at ¥13,000 or more will be subject to a 3% tax. The higher the room rate, the more tax guests will pay.
Applies to Budget Lodgings and Hotels, as Well as Private Lodgings
Under the new system, the tax will apply not only to hotels and traditional inns but also to simple lodging facilities and private lodging properties, known as minpaku. Covered properties include registered minpaku homes and special-zone minpaku facilities operated under the relevant regulatory frameworks.
The Tokyo Metropolitan Government does not collect the tax directly. Instead, lodging operators collect it from guests and report and remit it to the metropolitan government. Newly covered operators will therefore need to prepare for the required registration and collection procedures.
Examples of Tokyo’s Lodging Tax by Room Rate
According to the Tokyo Metropolitan Government and related reports, the tax will be calculated as follows under the revised system.
- ¥12,000: Tax-exempt
- ¥13,000: ¥390
- ¥15,000: ¥450
- ¥20,000: ¥600
- ¥50,000: ¥1,500
A draft that listed the tax on a ¥50,000 stay as ¥1,460 does not match the result of applying the 3% rate. Based on a ¥50,000 room rate, the lodging tax will be ¥1,500—¥1,300 more than the current maximum charge of ¥200.
Impact on Travelers and the Lodging Industry
Higher Costs for More Expensive Stays
Guests booking luxury hotels or stays during peak travel periods may face a higher tax burden than under the current flat ¥200 system. The difference will be especially noticeable when the room rate reaches tens of thousands of yen.
By contrast, stays costing less than ¥13,000 will remain tax-exempt under the new system. As a result, the change will not necessarily amount to a across-the-board tax increase for travelers staying at business hotels and other budget accommodations.
Added Pricing and Administrative Burdens for Private Lodgings and Simple Accommodations
Operators of private lodgings and simple accommodation facilities will need to display the lodging tax separately or explain it during the booking process, then collect it from guests and file the necessary reports. For bookings made through accommodation platforms, the way the tax is displayed and settled may vary by operator, so guests should check in advance.
The Tokyo Metropolitan Government plans to use the lodging tax to fund tourism promotion and improvements to the city’s capacity to accommodate visitors. The revenue is expected to support measures such as reducing overcrowding, providing information and etiquette guidance for tourists, and upgrading tourism infrastructure.
What Should Tokyo Travelers Check?
When booking accommodation in Tokyo for stays after April 2027, travelers should check whether the listed room rate is calculated per person and per night. Even when the cost of a room is divided among several guests, the tax is based on the rate per person per night, so the amount due may vary.
It is also advisable to check whether service charges or booking-related fees are included in the room rate, and how separate items such as meals and consumption tax are handled. Confirming whether the lodging tax will be added separately at the final payment stage can help prevent unexpected costs.
The reform will place a greater burden on higher-priced stays while expanding the exemption threshold for lower-priced accommodations and bringing some previously uncovered types of lodging into the tax system. The actual impact on travel costs will depend on the room rate and the number of guests.
Frequently Asked Questions (FAQ)
When will Tokyo’s lodging tax change?
The new system will apply to stays on or after April 1, 2027.
How much is Tokyo’s lodging tax?
From April 1, 2027, the tax will be 3% of the room rate per person per night. Stays costing less than ¥13,000 per person per night will be exempt.
How much tax will I pay for a ¥50,000 hotel stay?
If the room rate is ¥50,000 per person per night, the lodging tax will be ¥1,500. That is ¥1,300 more than the current maximum charge of ¥200.
Will stays costing less than ¥13,000 also be taxed?
Under the new system, stays costing less than ¥13,000 per person per night will be exempt from the lodging tax.
Will private lodgings also be subject to Tokyo’s lodging tax?
From April 1, 2027, simple lodging facilities and private lodgings will also be subject to the tax. Covered properties include registered minpaku homes and special-zone minpaku facilities operated under the relevant regulatory frameworks.
Who collects the lodging tax?
Operators of hotels, traditional inns, simple lodging facilities, private lodgings, and other accommodations collect the tax from guests and then report and remit it to the Tokyo Metropolitan Government.
