Tokyo Tourist Taxes to Double from April 2027 as Airbnb Exemption Set to End

Tokyo is preparing to introduce sweeping changes to its accommodation tax, replacing its long-standing flat-rate system with a new percentage-based charge that is expected to increase costs for many travelers from April 2027.

As Japan’s capital and one of the world’s most visited cities, Tokyo welcomes millions of domestic and international visitors every year, with its accommodation tax helping to fund tourism initiatives and improve services across the city.

Under the current system, guests staying in hotels or traditional Japanese inns pay ¥100 (approx. $0.70 USD / £0.50 GBP) per person, per night for rooms costing between ¥10,000 (approx. $70 USD / £50 GBP) and ¥15,000 (approx. $105 USD / £75 GBP), while accommodation priced at ¥15,000 (approx. $105 USD / £75 GBP) or more is charged a flat ¥200 (approx. $1.40 USD / £1.00 GBP) per person, per night.

Accommodation costing less than ¥10,000 (approx. $70 USD / £50 GBP) per person, per night is currently exempt from the tax.

Beginning in April 2027, however, the tax-free threshold will increase to ¥13,000 (approx. $91 USD / £65 GBP) per person, per night, with accommodation above that amount instead subject to a 3% accommodation tax based on the cost of the stay.

For example, two people sharing a hotel room costing ¥30,000 (approx. $210 USD / £150 GBP) per night would pay a total accommodation tax of ¥900 (approx. $6 USD / £4.50 GBP), or ¥450 (approx. $3 USD / £2.25 GBP) per person, compared to the current combined charge of ¥400 (approx. $2.80 USD / £2.00 GBP).

Another major change will see the accommodation tax expanded beyond hotels and ryokan to include licensed private holiday rentals and guesthouses, meaning Airbnb-style accommodation will also become subject to the same percentage-based system.

The revised tax will apply equally to Japanese residents and overseas visitors, with the Tokyo Metropolitan Government stating that applying different rules based on nationality or residency would be impractical, so the tax is instead based solely on overnight stays.

Officials estimate the revised system will generate approximately ¥19 billion (approx. $133 million USD / £98 million GBP) in annual revenue.

According to the Tokyo Metropolitan Government, the additional income will be invested in tourism-related projects, including improving the visitor experience, supporting communities affected by tourism, strengthening accommodation services and promoting cleaner, more sustainable tourism.

The move also reflects a growing nationwide trend, with destinations including Kyoto, Osaka, Fukuoka, Kanazawa, and Atami already operating similar accommodation tax systems while other municipalities continue to explore introducing their own.

Visitors planning trips to Tokyo from April 2027 should expect accommodation taxes to increase for many mid-range and higher-end properties, with the additional charge likely to be either included in advertised room rates or added during the booking process depending on the accommodation provider.