Tokyo to Introduce New Accommodation Tax System on April 1, 2027; Rate Changed to a Flat 3%, Minpaku and Simple Lodgings Now Included

Tokyo's New Accommodation Tax System to be Applied from Stays on April 1, 2027

　The Tokyo Metropolitan Government Bureau of Taxation has announced that a new accommodation tax system will be implemented from April 1, 2027. Approval from the Minister for Internal Affairs and Communications was obtained on June 30 for the revision of the accommodation tax, which had been under discussion.

　The current ordinance, introduced in October 2002, applies to ryokans and hotels within Tokyo. Stays costing less than 10,000 yen per person per night were exempt from taxation, with a tax of 100 yen for stays between 10,000 and less than 15,000 yen, and 200 yen for stays of 15,000 yen or more.

　Under the new system, "simple lodgings" and "minpaku" (private rentals, including those under the Special Zone and new private lodging laws) will be added to the list of taxable accommodations. Additionally, while the tax exemption threshold will be raised from less than 10,000 yen to "less than 13,000 yen," the tax will be changed to a flat-rate system of "a uniform 3% of the accommodation fee." For example, a stay costing 13,000 yen will be taxed 390 yen, a 15,000 yen stay will be taxed 450 yen, and a 20,000 yen stay will be taxed 600 yen.

Collected by accommodation operators and declared and paid to the Tokyo Metropolitan Government

　While the exemption threshold has been raised out of consideration for student trips and other factors, minpaku facilities will now also be subject to the tax. According to estimates by the Tokyo Metropolitan Government (at the time the draft was announced), this is expected to significantly improve tax revenue, which will be used for initiatives such as etiquette awareness campaigns by the local government, waste management measures, easing congestion using AI, and supporting barrier-free access at accommodation facilities.

　Furthermore, advance registration for special collection agents, targeted at operators of minpaku and simple lodgings who will be newly obligated to collect the accommodation tax due to the ordinance revision, will begin on July 1, 2026. Applications can be submitted electronically (via eLTAX), by mail, or at the counter of a metropolitan tax office.