**Kyoto’s New Accommodation Tax Reform Plan**
If the ordinance amendment passes the assembly, it will be implemented starting in 2026.
A 10,000 yen tax will be imposed per night if the room charge exceeds 100,000 yen per night.
The accommodation tax will be subdivided from the current three levels to five.
Tax revenue is expected to double to 10 billion yen.
According to a report by Yomiuri Shimbun on the 7th, Kyoto City, the ancient capital of Japan, has decided to raise the upper limit of the accommodation tax charged per person per night in hotels and ryokans from the current 200-1,000 yen (approximately 1,800-9,100 won) to 10,000 yen (approximately 91,900 won).
The Yomiuri Shimbun, citing an official, predicted that the ordinance amendment is likely to be submitted to the assembly as early as February. If the amendment is passed, it is scheduled to be implemented from 2026.
Since October 2018, Kyoto City has been charging an accommodation tax of 200 yen for stays under 20,000 yen, 500 yen for stays between 20,000 and 50,000 yen, and 1,000 yen for stays over 50,000 yen, per person per night.
The COVID-19 pandemic has led to a significant increase in foreign visitors staying in Kyoto, with 2023’s tax revenue amounting to 5.2 billion yen, the highest on record.
Kyoto Mayor Koji Matsui, who took office in February last year, proposed the increase in the accommodation tax as part of a pledge to improve the environment amid the surge in tourism.
Kyoto City plans to increase the accommodation tax to five levels, charging 10,000 yen per night for room rates exceeding 100,000 yen. This 10,000 yen cap is the highest flat-rate accommodation tax in Japan. The minimum tax amount of 200 yen will remain, but its scope will change to include stays under 5,000 yen per night. After the tax hike, Kyoto City expects tax revenue to exceed 10 billion yen, more than double the current amount.
According to Japan’s Ministry of Internal Affairs, the accommodation tax, categorized as a “non-statutory purpose tax,” is currently implemented by 11 local governments, including Tokyo and Kanazawa. Shizuoka Prefecture’s Atami City and Hokkaido’s Akaigawa Village are also considering its implementation.