Money in Japan: yen, cash machines, tax-free shopping and accommodation taxes

In Japan you pay in yen, by card in most shops and in cash where cards are not taken; foreign cards withdraw yen from the cash machines in 7-Eleven convenience stores and post offices. Local taxes weigh most heavily in Kyoto.

The yen and cash

The currency is the yen (JPY), in notes of 1,000, 2,000, 5,000 and 10,000 yen. The ¥2,000 note is rare and easily mistaken for the ¥1,000 note, so check your change. A ¥10,000 note is accepted even for a small purchase. The Japan National Tourism Organization (JNTO) points out that Japan is still very much a cash-based society and advises keeping cash on you, with a purse for coins, which soon get heavy.

You can change your own currency into yen on arrival, at airport exchange counters, in banks and in some hotels; the currencies accepted vary from one counter to another.

Withdrawing yen from cash machines

Not every cash machine takes foreign cards. Two networks accept them throughout the country:

Post office machines operate from 7 am to 11 pm on weekdays and Saturdays, and from 7 am to 9 pm on Sundays and public holidays, local time, with shorter hours over the New Year holidays and Golden Week. Mizuho, MUFG and SMBC banks also accept some foreign cards in their branches. Fees vary with the time and day, not all machines run 24 hours, and those in central districts can run out of cash. The bank that issued your card may charge its own fees, so it is worth knowing them before you leave.

Before a day on the Inland Sea islands or in the mountain villages of Hida, withdraw enough cash for entry fees, boats and small restaurants. In Nara, the treasure hall of Kōfuku-ji takes cash only.

Paying by card

Credit, debit and prepaid cards from the main international networks are generally accepted throughout the country, according to JNTO; if the logo is not displayed at the door, ask before ordering. Shinkansen tickets can be paid by card. For short train, metro and bus journeys and convenience-store purchases, rechargeable transport cards known as IC cards, such as Suica, Pasmo or ICOCA, are more convenient: you tap them at the ticket gate or the till. The guide Trains in Japan explains how to get one.

Consumption tax and tax-free shopping

Prices in Japan include consumption tax, the local equivalent of VAT (value added tax): 10%, or 8% for food bought to take away, excluding alcohol, since 1 October 2019.

Foreign visitors can claim it back on their purchases. The system changes on 1 November 2026. For purchases made up to 31 October 2026, the tax is deducted at the till. For purchases made from 1 November 2026, according to the Japan Tourism Agency, it is refunded after departure:

1. In the shop. In a shop displaying the tax-free sign, you show your passport and pay the price including tax. The threshold is ¥5,000 before tax in one shop on one day, with no upper limit, provided you can carry all your purchases out yourself.
2. On departure, before checking in your bags. You show your passport at a tax-free kiosk in the airport. A green result means the procedure is complete; a red one means you must show the items to customs. At Narita, Haneda, Kansai, Chubu, Fukuoka, New Chitose and Naha airports, the procedure can also be done on Visit Japan Web, in the departure hall up to the security check.
3. The refund. It is paid by the shop or by the refund company it works with, by the method it offers.

The customs check must take place within 90 days of purchase, up from 30 days, and the distinction between general goods and consumables disappears, as does the sealed packaging for consumables. Food, drinks and cosmetics used up in Japan are not refunded. Above all, if a single item on a receipt is missing at the check, the whole receipt loses its refund: keep your tax-free purchases together, in your hand luggage or at the top of your case, until you reach the kiosk. Allow time for the procedure before check-in closes.

Accommodation and bathing taxes

Several cities and prefectures charge an accommodation tax, paid at the hotel, per person per night, according to the price of the night per person. Hotel prices shown by Umika include taxes but not these local charges, which come on top.

Kyoto is where the tax matters most. The city's luxury hotels often exceed ¥50,000 or ¥100,000 per person per night. For a couple spending three nights in a room costing more than ¥200,000 a night, the tax comes to 10,000 ¥ (about 57 €) per person per night, or 60,000 ¥ (about 339 €) for the stay.

Two other local charges often come up on a trip:

• Miyajima has charged a visitor tax of 100 ¥ (about 1 €) per person since 1 October 2023, paid with the ferry ticket; pre-school children are exempt.
• The hot-spring bathing tax, known as nyūtōzei, is municipal: the local tax law sets the standard rate at 150 ¥ (about 1 €) per person per day, and some municipalities apply a different amount. Ryokans with onsen (hot-spring baths) add it to the bill; the guide Onsen, ryokan and etiquette explains bathing etiquette.

Departure tax

Since 1 July 2026, the International Tourist Tax has been 3,000 ¥ (about 17 €) per person on each departure from Japan. It is generally included in the air fare.

Tipping

Tipping is not customary in Japan, whether in bars, cafés and restaurants, taxis or hotels. A private guide or interpreter used to foreign visitors may accept a tip as thanks, without expecting one. It is then handed over discreetly, in an envelope sold in convenience stores, stationers or 100-yen shops: this is the custom of kokorozuke, a gratuity "from the heart". The Japan page gives budget benchmarks by hotel.