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Kyoto to increase hotel tax by up to 900 percent, making it Japan’s highest

To tackle overtourism, Japan’s ancient city will impose an accommodation tax of up to ¥10,000 starting March 2026

Lim Chee Wah
Written by
Lim Chee Wah
Contributing Editor, Time Out Osaka
Kyoto Ninenzaka
Cristi Croitoru/Dreamstime | Ninenzaka is one of Kyoto's most scenic and popular streets
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Japan's most popular Unesco World Heritage Site, Kyoto is currently riding a major tourism boom. But with the influx of visitors comes serious congestion – on public buses, along scenic streets like Sannenzaka and Ninenzaka, and at ancient temples. In response, local councils have implemented several measures to help manage the crowds, including the introduction of special sightseeing buses catering to tourist needs.

Now, as the latest countermeasure against overtourism, Kyoto is set to increase its accommodation tax by up to 900 percent, from ¥1,000 to ¥10,000 per person per night for the top category of hotels. The raise was proposed early this year and it’s now approved by the Ministry of Internal Affairs and Communications. Set to take effect on March 1 2026, this hike will make Kyoto’s accommodation tax the highest in Japan.

But don’t panic just yet. This is still a staggered tax system and the top-tier ¥10,000 rate only applies to luxury hotel rooms priced at ¥100,000 or above per night. 

Here’s the new accommodation tax breakdown:

  • Budget hotels under ¥6,000 per night: tax remains at ¥200 per person per night
  • Mid-range stays between ¥6,000 and ¥19,999: tax increases from ¥200 to ¥400
  • Hotels priced at ¥20,000 to ¥49,999: tax goes from ¥500 to ¥1,000
  • Stays from ¥50,000 to ¥99,999: levy jumps from ¥1,000 to ¥4,000
  • Luxury accommodation at ¥100,000 and above: tax surges from ¥1,000 to ¥10,000 per person per night

According to Asahi Shimbun, the Kyoto city government plans to use the increased accommodation tax revenue to invest in public infrastructure and implement measures to ease congestion and manage overtourism.

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