Kyoto City, located in western Japan, is considering a significant increase in its accommodation tax, potentially raising it to 10,000 yen, which is approximately 63 USD per night. this adjustment is being discussed to help manage the impacts of overtourism and fund various community initiatives. Since implementing the accommodation tax in 2018, the city has required all guests using hotels, inns, and other lodging facilities to contribute.
Currently, guests are charged 200 yen (about 1.3 USD) for overnight stays costing less than 20,000 yen, while those paying between 20,000 and 49,999 yen incur a fee of 500 yen. For stays with charges of 50,000 yen or more, the tax amounts to 1,000 yen. The tax revenue for the last fiscal year, which concluded in March, reached an impressive 33 million USD—the highest figure recorded to date.
City officials have determined that a tax increase is necessary to generate additional funds for addressing tourism-related challenges and other essential services.
Kyoto’s New Accommodation Tax Structure: Five-Tier Tax System Proposed
- 200 yen for accommodations costing up to 5,999 yen.
- 400 yen for stays priced between 6,000 and 19,999 yen.
- 1,000 yen for fees from 20,000 to 49,999 yen.
- 4,000 yen for charges from 50,000 to 99,999 yen.
- and 10,000 yen for expenditures of 100,000 yen or more.
The city administration intends to present the proposed tax revisions at a municipal assembly session scheduled for February. If approved by the assembly and subsequently endorsed by the internal affairs minister, the new rates could come into effect as early as March 2026.
Notably, the proposed 10,000-yen tax would represent the highest accommodation tax among the ten municipalities that have established similar taxation systems.
Kyoto City anticipates generating approximately 82 million USD annually from this revised tax structure, further underscoring the city’s aims to maneuver the economic effects of tourism while enhancing local resources.
