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Japan | Tokyo accommodation tax to be changed to 3%, effective April 2027
The Japanese government has agreed to change Tokyo’s accommodation (lodging) tax from a fixed-rate system to a rate-based system, and it will take effect in April 2027. In addition, five other cities will also adjust their accommodation tax at the same time, with Nago City in Okinawa introducing a new accommodation tax.
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Kyodo News reported that on Tuesday (June 30), Minister of Internal Affairs and Communications Yoshihiro Hayashi approved the change to Tokyo’s accommodation tax, to be charged at 3% of lodging costs. Taking as an example a room price of 15,000 yen per person per night (about HK$723), the new tax will be 450 yen (about HK$22), which is 250 yen (about HK$12) more than the current arrangement.
Under the current Tokyo accommodation tax, stays with a nightly room rate of less than 10,000 yen (about HK$482) are tax-exempt; those between 10,000 yen and 15,000 yen are charged a tax of 100 yen, and those above 15,000 yen are charged a tax of 200 yen. From April next year, the tax-free threshold will be raised to 13,000 yen (about HK$626.78).
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Of Tokyo’s tourism expenditure of 30.6 billion yen (about HK$1.48 billion) for the 2025 fiscal year, the existing accommodation tax only covers 6.9 billion yen (about HK$330 million). After the reform, the Tokyo Metropolitan Government expects to collect 19 billion yen per year (about HK$920 million).
The new accommodation tax measures will be implemented in stages starting in 2027. Nago City will begin collecting from February 2027. Wakkanai City and Kitahiroshima City in Hokkaido will adjust starting in March and October, respectively. Along with Tokyo, the four cities in total will make adjustments starting in April.
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