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Japan | Tokyo Accommodation Tax Changed to 3% Effective April 2027
The Japanese government has agreed to change Tokyo’s accommodation tax from a fixed-rate system to a rate-based system, levied at 3% of the accommodation fee, and it will take effect in April 2027. In addition, five other cities will also adjust their accommodation taxes at the same time, and Nago City in Okinawa will introduce a new accommodation tax.
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According to Kyodo News, Minister for Internal Affairs and Communications Yoshihide Hayashi agreed on Tuesday (June 30) to change Tokyo’s accommodation tax to be collected at a rate of 3% of the accommodation fee. Taking as an example a room rate of 15,000 yen per person per night (about 723 HKD), the new tax will be 450 yen (about 22 HKD), which is 250 yen more than the current requirement (about 12 HKD).
Under the current Tokyo accommodation tax, guests can enjoy tax exemption for room rates below 10,000 yen per person per night (about 482 HKD). For those between 10,000 yen and 15,000 yen, the tax is 100 yen, while rooms priced above 15,000 yen are taxed at 200 yen. Starting next April, the tax-free threshold will be raised to 13,000 yen (about 626.78 HKD).
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Of Tokyo’s 30.6 billion yen (about 1.48 billion HKD) tourism expenditure for the 2025 fiscal year, the existing accommodation tax covers only 6.9 billion yen (about 330 million HKD). After the reform, Tokyo is expected to collect 19 billion yen annually (about 920 million HKD).
The new accommodation measures will be implemented in phases from 2027. Nago City will begin collecting the tax from February 2027. In Hokkaido, Wakkanai City and Kitahiroshima City will adjust their taxes from March and October, respectively. Along with Tokyo, the four cities will adjust starting in April.
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