Japan's consumption tax explained
Japan charges a 10% consumption tax on most things and 8% on most food and drink, and the price on the tag already includes it. The rate depends on what you buy and on where you eat it. The government also plans to cut the rate on food from April 2027.
The short version
There are two rates. The standard rate is 10%. The reduced rate is 8%, and it applies to food and drink (not alcohol, and not meals eaten at a restaurant) and to newspapers bought on a regular subscription. Each rate is a total of the national consumption tax and the local consumption tax, as the National Tax Agency lists them.
| Part of the rate | Standard rate | Reduced rate |
|---|---|---|
| National tax | 7.8% | 6.24% |
| Local tax | 2.2% | 1.76% |
| Total you pay | 10% | 8% |
The reduced rate has existed since October 1, 2019. Since April 1, 2021, shops must again show the price with tax included when they display a price to consumers. So the number on the shelf is what you pay at the register.
Which items get which rate
The rule is about what you are buying, not about the shop. A convenience store charges 8% on a rice ball and 10% on a notebook.
| What you buy | Rate | Notes |
|---|---|---|
| Groceries, snacks, soft drinks | 8% | Food as defined in the Food Labeling Act, without alcohol |
| Food to take away | 8% | Includes a store's takeout and a meal that is delivered to you |
| A meal you eat in | 10% | Restaurant tables, food courts, and the eat-in corner of a convenience store |
| Alcohol | 10% | Beer, wine, sake and other liquor are excluded from the reduced rate |
| Newspapers | 8% | Only on a subscription, for papers published at least twice a week |
| Everything else | 10% | Clothes, electronics, medicine, books, services and so on |
| Catering with service | 10% | Food served by staff at a place you choose. Some cases, such as school meals, stay at 8% |
A set that mixes food and non-food items sold at a single price counts as food as a whole if the price is 10,000 yen or less before tax and the food makes up at least two-thirds of the value. Otherwise the whole set is taxed at 10%.
Eat-in or takeout?
This is the part that surprises visitors. A shop that has seats can charge two rates for the same item, depending on where you eat it. Here is a meal with a price of 1,000 yen before tax.
| Case | Tax | You pay |
|---|---|---|
| Takeout or delivery (8%) | ¥80 | ¥1,080 |
| Eat in (10%) | ¥100 | ¥1,100 |
The rate is decided when the shop hands you the food, and it depends on your answer. You may hear "kochira de omeshiagari desu ka?" ("Will you eat here?") or "omochikaeri desu ka?" ("Is it to take away?"). Some convenience stores post a sign asking you to tell the staff if you will use the eat-in corner. Answer for what you actually plan to do.
Reading price tags and receipts
The Consumption Tax Act (Article 63) requires a shop to show the price with tax whenever it shows a price to consumers in advance, on a tag, a shelf label, a flyer, a catalog or an ad. A price spoken aloud is outside the rule. The National Tax Agency lists these as valid ways to show a 10,000 yen item at the standard rate:
- ¥11,000
- ¥11,000 (tax included)
- ¥11,000 (price before tax ¥10,000)
- ¥10,000 (price with tax ¥11,000)
So you may see a pre-tax price on a tag, as long as the tax-included price is shown as well. If you want to work out a pre-tax price from the one you see, divide by 1.10 for goods at 10%, or by 1.08 for goods at 8%.
Receipts split the total by rate. Reduced-rate items are usually marked with a symbol such as ※ or *, and a note at the bottom explains the mark. This is how you check what you were charged for a mixed basket.
Visitors and the tax-free system
Tourists can buy some goods without paying the tax, or get it refunded, under a separate system. The rules change on November 1, 2026. The tax-free shopping guide and refund calculator explains the new procedure and lets you estimate the refund at 10% and 8%.
The planned cut on food from April 2027
On September 15, 2026, the Cabinet approved an outline for a temporary cut in the consumption tax on food and drink. The National Tax Agency has published materials that describe the plan. It says the details apply if a bill is submitted to the Diet, debated and passed. At the time of writing, on October 4, 2026, we have found no source saying the bill has passed. Treat the rest of this section as a plan, and check the agency's special site before you rely on it.
According to the agency's materials, the plan is:
- For two years, from April 1, 2027 to March 31, 2029, the rate on food and drink would be 1% (0.78% national plus 0.22% local).
- The scope would be the same as the 8% reduced rate today. Takeout and delivery would be included. Eating in, alcohol and catering with service would stay at 10%, and so would non-food goods.
- Newspapers on subscription would stay at 8%.
- Some food sold under a regular-delivery contract or a mail-order offer made before January 1, 2027 would stay at 8%.
- From February 1 to May 31, 2027, a shop that cannot change its tags in time could show a tax-included price at either 8% or 1%, with a notice so that buyers are not misled. The same exception is planned for the end of the cut.
| Case | Rate | Tax | You pay |
|---|---|---|---|
| Today | 8% | ¥80 | ¥1,080 |
| Planned from April 2027 | 1% | ¥10 | ¥1,010 |
| Eating in, both periods | 10% | ¥100 | ¥1,100 |
The gap between eating in and taking out would widen from 20 yen to 90 yen on this meal. If the plan passes, the tax-free refund on goods taxed at 1% would also be much smaller, because the refund equals the tax you paid.
Frequently asked questions
Is tax included in the price on the shelf?
Yes, for prices shown to consumers in advance. Since April 2021 the law requires the tax-included price. A pre-tax price can appear too, but only together with the tax-included price.
Why was my sandwich taxed at 10%?
Probably because you ate it in the store's eat-in space. Food to take away is taxed at 8%, and food eaten on the premises is taxed at 10%. The shop asks which one you want when you pay.
Will food really be taxed at 1% from April 2027?
It is a plan, not yet a law, as far as we can tell on October 4, 2026. The Cabinet approved an outline on September 15, 2026, and the National Tax Agency says the details apply if the Diet passes the bill. Check the agency's special site for news.
Sources
- National Tax Agency, Tax Answer No. 6303: consumption tax and local consumption tax rates (in Japanese)
- National Tax Agency, Tax Answer No. 6902: the total-price display requirement (in Japanese)
- National Tax Agency: the reduced tax rate system (in Japanese)
- National Tax Agency, September 2026: pamphlet on the two-year consumption tax cut on food and drink, which describes the outline approved by the Cabinet on September 15, 2026 (in Japanese)
- National Tax Agency: special site on the planned cut (in Japanese)
- The ¥ examples are our own calculations from these rates. Shops may round fractions of a yen in different ways.
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Last updated: 2026-10-04