Kyoto City intends to raise the current hotel tax from 200 to 1,000 yen (US$1.29 to US$6.43) per night, with a maximum cap of 10,000 yen per night from 1 March 2026. Photo Credit: Adobe Stock/iamdoctoregg
Kyoto City has unveiled plans to raise the current tax from 200 to 1,000 yen (US$1.29 to US$6.43) per night, with a maximum cap of 10,000 yen per night, effective 1 March 2026. The proposal will go before the city council in February 2025 and requires final approval from the Minister of Internal Affairs and Communications.
This revamped tax system is projected to more than double Kyoto’s annual tax revenue, increasing from 5.2 billion yen in 2023 to an estimated 12.6 billion yen. The additional funds are part of Kyoto’s broader vision to manage the challenges of overcrowding and maintain its appeal as a sustainable tourist destination that benefits both visitors and residents. The popular Japanese city has grappled with surging foreign tourist arrivals in recent years, particularly in the wake of the pandemic.
Kyoto’s new accommodation tax structure
The current accommodation tax, introduced in 2018, is divided into three categories based on nightly accommodation costs:
200 yen per night for stays under 20,000 yen
500 yen per night for stays between 20,000 and 50,000 yen
1,000 yen per night for stays above 50,000 yen
The proposed structure introduces five tiers:
200 yen per night for stays under 6,000 yen
400 yen per night for stays between 6,000 and 20,000 yen
1,000 yen per night for stays between 20,000 and 50,000 yen
4,000 yen per night for stays between 50,000 and 100,000 yen
10,000 yen per night for stays above 100,000 yen
Meanwhile, the existing tax exemptions for school trip groups will remain intact. To ease the transition for accommodation providers, Kyoto City plans to offer subsidies for system upgrades, including cashless payment solutions and public relations efforts.
AloJapan.com