The Truth About Kyoto’s New Hotel Tax

Helen Foster
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‘Kyoto is slapping on a hotel tax of 10,000 yen (US$65) per person, per night,’ say the headlines. But, headlines don’t always tell the whole truth – so, here’s what’s really happening to hotel prices in Kyoto.

LArge double bed with a gold headboard in a room at the Misen hotel Kyoto. Paper screens over the windows give the room a traditional feel

Article by Helen Foster. Disclosure: Some links in this post are affiliate links. See our Affiliate Disclosure.

What’s Happening

Let’s start with the bad news – Kyoto is indeed going to be increasing the hotel tax they charge on stays from March 1st next year.

And, it’s also true that, for some people, it’s going to be 10,000 yen a night (around US$65, AU$100 or £50) per person.

But it’s not going to be that much for the majority of people, in fact for most people you’ll be paying about the same as you pay now as a tax of ¥200 to ¥1000 per person per night is already added to stays based on your room price.

How The Tax Will Work

The tax will be charged on a sliding scale based on the price you pay for your accommodation. So,

If you pay under ¥6,000 per night (around US$40), you’ll pay ¥200 per person per night (US$1.30) in tax. That’s the same as what is currently charged, so it won’t make any difference to you.

If you pay between ¥6,000 (US$40) and ¥19,999 (US$132), the tax is ¥400 per person per night (US$2.60).

If you pay between ¥20,000 (US$132) and ¥49,999 (US$328), you’ll pay ¥1,000 per person per night (US$6.50).

If you pay ¥50,000 (US$328) to ¥99,999 ($656), the tax will cost you ¥4,000 per person per night (US$26). This is where the new taxes start.

And now the big one. Those paying accommodation costs of more than ¥100,000 ($656) a night will incur an additional charge of ¥10,000 (US$65) per person per night.

Except….

Don’t Stop Reading Yet

There’s one more step that not everyone reporting this has picked up on.

The rate you pay is based on the amount each person pays per night, not the overall room rate. Most reports I’ve read have interpreted it to mean that if your room costs ¥60,000 a night and two of you are staying, you’ll each pay ¥4,000 a night – an extra ¥8,000 – but you don’t.

To determine the amount your nightly tax is based on, you need to divide the total room rate by the number of people staying in it.

So, in reality, our couple in a room costing ¥60,000 is actually paying ¥30,000 each, so their tax is only ¥1,000 each per night, NOT ¥4000 each per night. If a family of four were staying in that same room, they’d be paying ¥15,000 each, and each person’s tax would be ¥400 per night.

That’s a big difference.

That’s Different to What I’ve Read Elsewhere

I know. I also thought it was just on the total room rate originally, and when I saw someone from Japan mention the ‘per person’ nuance in a Facebook group I thought they’d got it wrong.

So I went and looked at the official press release in Japanese, and the tax review information. Both read a bit ambiguously when translated, but did indicate this could be how it will be worked out, so, at this point, I got official. I asked the representives for Kyoto Tourism in Australia to clarify, and they said yes, it’s based on the amount each individual is paying, not the room as a whole.

They have also read the final version of this piece to confirm I didn’t misunderstand anything during our communications. They also suggested I link to this English version of the advice which does say ‘per person, per night’. So assuming, their advice is right, which I would very much hope, tax is calculated on the price each individual pays not the room as a whole.

That makes the new tax much more affordable; although, I do find the maths that means a tax designed to pay for infrastructure strained by overtourism can end up costing a single traveler more than, say, a group of five, staying in the same hotel, a bit odd! But anyway…

Other Questions

The change has only recently been announced, so not every question you might have has an ‘official’ answer yet, but here’s what you might be wondering.

When Is the Tax Paid?

If you’re paying for your room at the hotel the payment be made to the hotel directly upon check-in.

If you’ve booked via a booking engine like Booking.com and paid in advance through them; check your booking details. It’s possible it will be added at source, if not the hotel will collect it separately via cash or card when you check in. This is how it currently works with the smaller hotel tax but as this one is a bit more complex, it might be set up a different way.

What About Children?

The wording says that the tax will be applied ‘per person’, and special consideration has been spelled out for children on school trips, so assume that it does apply to kids until we hear otherwise.

What About Reward Stays?

After all, if you’re booking on points, you won’t be paying actual money for your stay. I asked Kyoto Tourism, who asked City Hall, who confirmed that yes, sales paid for with things like airline miles will be subject to the tax on the ‘original accommodation cost,’ which seems to indicate rack rate.

However, they did mention an exception: ‘If they are not recorded as sales (due to a company-provided discount or allowance) and result in free accommodation, they will not be subject to tax.’ Don’t ask me what that means, I have no clue!

elaborate meal of small dishes served at a Japanese ryokan

Does It Include Extras?

As you can see on that colourful little document explaining the new tax, the rate you pay is only applicable to the accommodation part of your booking – so, if you go bonkers with room service or send out all your laundry to be cleaned, that won’t increase your tax.

Theoretically this should also mean that if you’re in a ryokan that includes meals, your tax might be less than you expect as, the meal part of the equation shouldn’t be included in the total, but, that’s something that remains to be seen when the tax comes in. Treat it as a nice surprise if it does reduce things for you.

Does It Apply to Airbnb?

The current hotel tax also applies to private lodgings, so this will likely apply to them as well.

How to Reduce Your Tax Bill

The fact is, for those already on a budget staying in cheaper rooms, the tax isn’t going to make too much of a difference – as a solo traveler I’d still only pay an extra ¥200 a night in my normal hotel, and compared to additional transport costs for staying outside of Kyoto and travelling in it’s not worth changing for me.

At the other end of the scale, if you’re a couple or a solo business traveller paying over ¥100,000 a night for a room, you’re already living in the luxury space, so the extra cost might not worry you anyway for a few nights.

Even if you’re a family of four, staying in, say, a Mimaru hotel so everyone gets their own bed (which will cost around ¥50,000 a night), at first the taxes looked huge, but the per-person calculation drops everything down to just 400 yen per person per night, so around US$11 – far more manageable.

But, if for some reason you do want to cut the costs, here are some ideas.

Book Cheaper Hotels

The less your room costs, the less you pay in tax.

Stay in Osaka and Commute to Kyoto.

Although don’t cut your nose off to spite your face here, the cheapest trains between Kyoto and Osaka cost ¥820 return per adult, so you could still stay in Kyoto in a room with your share costing up to ¥19,999 yen a night and save money – and even going up to ¥49,999 will only cost you an extra ¥180 over the train! For that, I’d just stay in Kyoto and save yourself time.

Related Read: How to decide if Kyoto or Osaka is the best place to stay for you.

Stay Fewer Nights in Kyoto

Many people use Kyoto as a base and travel on day trips to Nara or Hiroshima from there, but both of these also make great overnight destinations, so you could spread the load a bit and stay in one of these cities rather than buzzing in and straight out again.

View of Byo-do in temple in Uji reflected into the pond that surrounds it.

Stay in Uji

Most people looking for an alternative to Kyoto pick Osaka, but Uji is within 30-60 minutes by train from Kyoto (depending upon where you get on/off) and offers lovely small-town vibes.

Limit Ryokan Stays to One Fabulous Night

Staying in a ryokan is likely to mean paying more for your room in Kyoto as they tend to be higher-end facilities, but, in my opinion at least, staying for all your trip to Kyoto in a ryokan isn’t the best idea anyway, as the whole point of them is that they are the destination.

It seems silly to pay for all that personal service, onsens, and beautiful meals, only to either dine in Kyoto or miss out on doing so. So, maybe think about confining your ryokan stay to one night at the end of your Kyoto visit and going all in – stay in the hotel wearing your robes, enjoy the different baths that may be on offer, eat the delicious multicourse meal, then relax afterwards.

Skip Kyoto Completely

This is the nuclear option. After all, there’s a reason Kyoto is so popular – it’s the best traditional Japan has to offer, but it’s not the only place traditional Japan has to offer. You could also look at Takayama, Kanazawa or even smaller towns like Tsuwano, known as Little Kyoto.

But to be honest, most of the articles about the tax have hyped it up to be way worse than it actually is going to be for the average person. So, would I change my plans based on it – no! No I wouldn’t. Just think of it as contributing to ways of helping this beautiful city cope with us visiting it more effectively.

Related Read: Discover the One Way to Annoy Everyone in Kyoto – and how to avoid it.


Who Writes This Blog?

My name is Helen Foster, and I’m a journalist and author. My travel articles have appeared in publications including The Australian, Escape, RAC Horizons, Jetstar Magazine, Sainsbury’s Magazine, and more.

I’ve traveled to Japan eight times before – solo and with my partner and visited over 25 towns and cities. My last visit was November 2024 so, everything here is pretty up to date.


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