What is the consumption tax in Japan and how are prices shown?

Learn how Japan's 10 percent consumption tax and 8 percent reduced rate work, why takeout and eat-in prices differ, and how to read price tags and receipts.

Published October 20, 2026 at 5:38 PM JST | By Tokyo Paul

Quick answer: Japan's consumption tax is a nationwide sales tax with a standard rate of 10 percent. A reduced 8 percent rate usually applies to non-alcoholic food and drink bought to take away, while eating in is taxed at 10 percent. Price tags and menus are typically shown tax included, so the displayed amount is generally what you pay. Check official pages for current rates.

What the consumption tax is

Japan's consumption tax (shohizei, literally "consumption tax") is the country's version of a sales tax or value-added tax. It applies to most goods and services sold in Japan, from clothing and electronics to hotel rooms, taxi rides and restaurant meals. The Ministry of Finance describes a standard rate of 10 percent, in place since October 1, 2019.

The 10 percent is a combined figure. The National Tax Agency's English page explains that it is made up of a national portion and a local portion, which are collected together at the register so shoppers see only one amount. Visitors never need to calculate the two parts separately.

How the reduced 8 percent rate works

Alongside the standard rate, Japan has a reduced rate of 8 percent. According to the Ministry of Finance and the National Tax Agency, it covers food and drink other than alcohol and eating out, plus newspapers that are subscribed to and published at least twice a week. Most everyday shopping, such as clothing, souvenirs, toiletries and medicine, stays at 10 percent.

For travelers, the part that matters is food. Supermarket groceries, bottled tea and packaged snacks usually carry 8 percent. Alcohol is always at 10 percent, even when it is bought in a supermarket and carried home.

Takeout, eat-in and the convenience store question

The same sandwich or coffee can carry two different rates depending on where it is eaten. The Ministry of Finance explains that at fast food shops and convenience stores, food and drinks consumed on the premises are taxed at 10 percent, while takeout is taxed at 8 percent. Staff often ask which you intend, with phrases such as "tennai de" (eating here) or "mochikaeri" (to take away).

At a convenience store, an eat-in area with seats or a counter marked for dining is what counts. If you say takeout and then sit down to eat inside, the shop may not be able to apply the lower rate, so it is best to answer according to your real plan.

Sit-down restaurants are different. A meal served at a table is generally treated as eating out and taxed at 10 percent, with takeout orders at the same restaurant often following the reduced rate. Because the rule depends on how the food is served, the official pages are the place to check unusual cases.

How prices are shown on tags, menus and receipts

Shops and restaurants in Japan generally show tax-included prices these days, often labeled zeikomi (tax included). That means the number on a tag or menu is usually the amount you hand over. Some places also show a smaller pre-tax number (zeinuki, tax excluded) beside it, so look for the larger, tax-included figure.

Receipts normally break the amount down, which makes it easy to see how much of a bill is tax. You may see the subtotal, the 10 percent items and the 8 percent items listed separately, sometimes marked with a symbol or the words keigen zeiritsu (reduced tax rate). If a price looks slightly different from the tag, the cause is usually rounding or a mix of rates.

Some price displays, small stalls and some online prices may still show tax-excluded amounts, so a quick glance at the wording is worthwhile, especially in markets and at small family-run counters where tags are handwritten.

Rules for visitors and tax-free shopping

Consumption tax applies to visitors in the same way as residents. Japan also has a tax-free shopping system for short-term visitors, where eligible shops can sell certain goods without the tax when the items are taken out of the country. Conditions, such as a minimum purchase amount and passport checks, apply, and the system is scheduled to change to a refund method for purchases from November 1, 2026.

Because the rules are set by the government and by individual shops, the safest approach is to look for tax-free signs, bring your passport and ask at the counter. The Japan Tourism Agency and the National Tax Agency both publish information for visitors, so check the official pages for current details.

Families and older travelers should know that there is no age-based discount on the tax itself. Child fares and senior discounts, where they exist, are set by each operator and are separate from consumption tax.

Common mistakes and misunderstandings

A frequent surprise is expecting a tax to be added at the register on top of the tag price. In most shops today the tag already includes it, so adding another 10 percent in your head will make things look more expensive than they are. The exception is a place that shows tax-excluded prices, which usually says so clearly.

Another mix-up is assuming the lower 8 percent covers all food. It does not cover restaurant meals eaten at the venue or alcohol. A bento box from a supermarket and the same meal served in a dining area can therefore be taxed at different rates.

Finally, the consumption tax is not the same as an accommodation tax. A hotel bill can include both, and the lodging tax is listed separately in many cities. Service charges, which some upscale hotels and restaurants add, are a third item again and may be shown on their own line.

Planning tips and a short checklist

Because rates and exemptions are decided by the government, they can change in the future. Treat the figures in this guide as a general picture and check the National Tax Agency or Ministry of Finance English pages before a trip if the exact percentage matters to your budget.

Practical habits help. Keep receipts if you plan to claim tax-free shopping, say "mochikaeri" or "tennai" when asked at a convenience store, and read the larger price on a tag. For budgeting, a simple rule is that groceries sit near 8 percent and nearly everything else near 10 percent. This guide shares general information; rules change, so confirm details with the official agency or provider before you act.

Frequently Asked Questions

Is the price on the tag the final price in Japan?

Usually yes. Shops and restaurants are generally expected to display tax-included prices, so the larger number on a tag or menu is typically what you pay. Some places also show a smaller tax-excluded figure beside it, and a few stalls or websites may show only the pre-tax amount, so read the wording.

Why is a convenience store snack sometimes charged at two different rates?

The rate depends on how the item is consumed. Takeout food and non-alcoholic drinks usually carry 8 percent, while food eaten in a store's dining area is taxed at 10 percent. Alcohol is always 10 percent. A receipt may list both rates when you buy a mix of items.

Can tourists get the consumption tax back?

Many visitors can shop tax free at eligible stores, where the tax is not charged on qualifying goods taken out of Japan. Rules, minimum amounts and procedures change, and not every shop takes part. Bring your passport, look for tax-free signs, and check the Japan Tourism Agency's official page for current conditions.

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