Going to Tokyo? A new 3% accommodation tax takes effect in April 2027

If you're planning a trip to Tokyo, be ready to pay a small additional charge for your accommodation.

The Tokyo Metropolitan Government said it will start collecting a 3% accommodation tax on hotel and private lodging stays beginning in April next year.

As reported by Japanese media outlet NHK, Internal Affairs and Communications Minister Seiichiro Murakami has approved the new tax system on July 1 to help cover higher expenses caused by the growing number of international visitors. 

City officials said the money will go to waste collection and other city services. It is also expecting 19 billion yen or P7,207,900,800 in revenues. 

Hostels and private short-term rentals will also be included under the new tax system. However, guests staying in rooms priced at less than 13,000 yen or P4,930.26 per night will not have to pay the tax.

Under Tokyo's current accommodation tax system, guests are charged 100 yen (P37.93) per person per night for rooms priced from 10,000 yen to under 15,000 yen (P3,792.44 to P5,688.65). For stays costing 15,000 yen (P5,688.65) or higher, the tax increases to 200 yen (P75.85) per person per night.

Japan's Bureau of Taxation defines accommodation tax as "a discretionary special-purpose tax that has been imposed on those who stay in ryokan (Japanese inns) or hotels in Tokyo since October 1, 2002." It is computed by multiplying the number of nights stayed by the tax rate.