Japan Consumption Tax Guide (2026 Edition)
Table of Contents
The 10% vs 8% System
Japan's Consumption Tax (Shouhizei) was raised to 10% in October 2019, but a "Reduced Tax Rate" system was introduced simultaneously to protect low-income households.
10% Standard Rate
- Dining in at restaurants
- Alcohol (Beer, Sake, etc.)
- Electronics, Clothing, Toys
- Transportation (Trains, Taxis)
- Hotel stays
8% Reduced Rate
- Groceries (Vegetables, Meat, Fish)
- Take-out / To-go food
- Beverages (Non-alcoholic)
- Newspaper subscriptions
The "Eat-In" vs "Take-Out" Rule
This is the most confusing part for visitors. If you buy a burger at a fast-food chain:
- Take-Out (To Go): You pay 8%.
- Eat-In (Dine In): You pay 10%.
Convenience stores (Konbini) will often ask "Start here?" or have signs. If you use the in-store seating area, you are legally required to pay 10%, though enforcement varies.
Tax-Free Shopping for Tourists
International tourists visiting Japan for less than 6 months can shop Tax-Free at licensed stores (department stores, electronics chains like Bic Camera/Yodobashi, Don Quijote, etc.).
Requirements:
- Passport: You must show your actual passport (copies usually not accepted) with your entry stamp.
- Minimum Spend: ¥5,000 (excluding tax) in a single day at one store.
- Consumables Rule: Items like food, cosmetics, and medicine must be sealed in a special clear plastic bag. Do not open this bag while in Japan. If you consume them in Japan, you theoretically owe the tax.
- General Goods: Clothes, bags, electronics can be used immediately in Japan.
Refund Process: Most stores deduct the tax at the register instantly. You pay the pre-tax price.
Total Price Display Law (2021)
Since April 1, 2021, businesses in Japan are required to display the Total Price (Tax Included). This means the price you see on the shelf should be the price you pay.
Example label: ¥1,100 (税込) - This means "Tax Included".
Warning: Some older shops or small stalls may still show pre-tax prices (¥1,000 + 税), so always check.