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Japan | Tokyo accommodation tax to be changed to 3%, effective April 2027
The Japanese government has approved changing Tokyo’s accommodation tax from a fixed-rate system to a rate based on 3% of the accommodation charges, with the change to take effect in April 2027. Five other cities will also adjust their accommodation taxes at the same time, including Okinawa’s Nago City, which will introduce a new accommodation tax.
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Kyodo News reported that General Affairs Minister Lin Yoshihide approved on Tuesday (June 30) to change Tokyo’s accommodation tax to be levied at 3% of the accommodation charges. Taking as an example a room price of 15,000 yen per person per night (about 723 HKD), the new tax would be 450 yen (about 22 HKD), which is 250 yen (about 12 HKD) more than the current requirement.
Under the current Tokyo accommodation tax, guests can enjoy tax exemption when the room charge per person per night is under 10,000 yen (about 482 HKD). For rates between 10,000 yen and 15,000 yen, the tax is 100 yen, while rates above 15,000 yen incur a tax of 200 yen. Starting April next year, the tax-exempt threshold will be raised to 13,000 yen (about 626.78 HKD).
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Of Tokyo’s tourism expenditure for the 2025 fiscal year of 30.6 billion yen (about 1.48 billion HKD), the existing accommodation tax currently covers only 6.9 billion yen (about 330 million HKD). After the reform, Tokyo expects to be able to collect 19 billion yen annually (about 920 million HKD).
The new accommodation measures will be rolled out gradually starting in 2027. Nago City will begin collecting from February 2027; in Hokkaido, Wakkanai City and Kitahiroshima City will adjust in March and October, respectively. Along with Tokyo, the four cities will all adjust starting in April.
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