Educational information only, not tax advice. Rules and figures change — confirm your situation with a qualified Japan tax professional before filing.
Japan · Japan · Short-term rental taxes
Short-Term Rental Taxes in Japan
STR income in Japan (minpaku) is taxed as miscellaneous or real-estate income under Japan's progressive income tax, with a flat 20.42% withholding rate for non-residents, plus local inhabitant tax and a city-by-city accommodation tax (shukuhaku-zei) collected from guests.
The 30-Second Answer
- Minpaku income (income from registered short-term rentals) is reported as real-estate income (不動産所得) or miscellaneous income (雑所得) on your annual Kakutei Shinkoku (確定申告) tax return, filed each March for the prior calendar year.
- Residents pay Japan's progressive income tax (5%–45%) plus local inhabitant tax (~10%), while non-residents face a flat 20.42% withholding tax on gross Japan-sourced rental income.
- You must hold a valid Minpaku registration under the Minpaku Hō (住宅宿泊事業法) — the 2018 Private Lodging Business Act — and are limited to 180 nights per year unless operating under a separate inn-business licence.
- Most major cities levy a per-person, per-night accommodation tax (shukuhaku-zei) — e.g. Tokyo ¥100–¥200, Osaka up to ¥500, Kyoto up to ¥10,000 from March 2026 — which registered hosts must collect and remit to the local government.
Deductions
Allowable Deductions for Japan STR Hosts
Hosts reporting actual expenses (jissō-keisan) can deduct the following costs from gross rental income to arrive at taxable income.
Where a property is used partly for personal use and partly for STR, only the STR-proportionate share of each expense is deductible. Keep receipts and a usage log. Non-residents may deduct expenses against gross income before the 20.42% withholding is applied, but must file a tax return to claim them.
Filing Calendar
Key Dates & Filing Calendar
Japan's tax year runs January 1 – December 31; the annual self-assessment return is filed in late winter of the following year.
Missing the March 15 Kakutei Shinkoku deadline can trigger late-filing penalties (無申告加算税) of 5%–20% of unpaid tax. File on time even if you cannot pay in full.
National Tax Agency Japan (NTA) — Filing deadlines: https://www.nta.go.jp/taxes/shiraberu/taxanswer/shotoku/2024.htm
Tax Treatment
Resident vs. Non-Resident: How Your STR Income Is Taxed
Japan does not offer a simplified flat-rate 'micro' regime for STR income. Instead, the key distinction is whether you are a Japanese tax resident or a non-resident, which determines your rate and filing method.
Tax Resident (Progressive Rate)
File a Kakutei Shinkoku; pay 5%–45% income tax + ~10% inhabitant tax on net income.
- STR income is classified as real-estate income (不動産所得) or miscellaneous income (雑所得) and added to all other income.
- Progressive national income tax rates: 5% (up to ¥1.95M), 10%, 20%, 23%, 33%, 40%, 45% (over ¥40M).
- Local inhabitant tax of approximately 10% is assessed separately by the municipality.
- All allowable deductions (depreciation, repairs, management fees, etc.) reduce taxable income before rates are applied.
- A 2.1% reconstruction surtax is added to the base income tax amount (making the top combined rate ~47.5%).
No income ceiling — all STR income declared
Non-Resident (Flat Withholding)
20.42% flat withholding tax on gross Japan-sourced rental income; file a return to claim deductions.
- Non-residents are taxed only on Japan-sourced income at a flat 20.42% (20% income tax + 0.42% reconstruction surtax).
- If a Japanese agent or tenant pays rent, they must withhold 20.42% and remit it to the NTA on the non-resident's behalf.
- Non-residents can file a Kakutei Shinkoku to deduct allowable expenses and potentially recover over-withheld tax.
- A tax representative (納税管理人) must be appointed if you leave Japan while still earning rental income.
- Tax treaties (e.g. Japan–US) may modify the withholding rate; check the applicable treaty.
No ceiling — applies to all Japan-source rental income
Depreciation
Depreciation (減価償却) for STR Properties
Japan's tax law prescribes specific useful lives for depreciable assets. The straight-line method (定額法) is mandatory for buildings; declining-balance (定率法) may apply to equipment.
| Asset | Typical write-off period | Notes |
|---|---|---|
| Reinforced-concrete (RC) residential building | 47 years | Straight-line method only; most Tokyo/Osaka condos fall here. |
| Light-gauge steel / wood-frame building | 22 years (wood) / 19–27 years (steel) | Older machiya (townhouses) often wood-frame; shorter life = faster write-off. |
| Furniture, appliances & fixtures | 5–6 years | Declining-balance method permitted; covers beds, TVs, air-con units. |
| Electrical / HVAC installations | 15 years | Straight-line; includes built-in air conditioning and lighting systems. |
Used (second-hand) buildings purchased by an individual may use a shortened useful life calculated as: (statutory life × 20%) + remaining statutory life × 80% — consult the NTA simplified formula. Annual depreciation = (acquisition cost − residual value) ÷ useful life under straight-line.
When a depreciable STR property is sold, accumulated depreciation reduces the acquisition cost basis, increasing the taxable capital gain. Short-term gains (held <5 years) are taxed at ~39.63%; long-term gains (held ≥5 years) at ~20.315%.
Shukuhaku-zei (宿泊税)
Japan's Accommodation Tax: City-by-City
Japan has no single national accommodation tax. Instead, individual prefectures and municipalities levy their own shukuhaku-zei (accommodation tax), charged per person per night on top of the 10% consumption tax.
Registered minpaku hosts in taxing municipalities must collect the accommodation tax from guests and remit it to the local government. Rates below are per person per night and are based on the room/accommodation charge (not including consumption tax).
Varies by city and nightly rate — from ¥50 to ¥10,000 per person per night
Tokyo Metropolitan Government Tax Bureau; Osaka Prefectural Government; Kyoto City (new rates effective March 1, 2026) — selfguidejapan.com/blog/japan-accommodation-tax-2026; matcha-jp.com/en/9362
| Booking type | Who collects & remits | What it means for your books |
|---|---|---|
| Direct booking (host collects payment) | Host collects from guest at check-in/check-out and remits to the municipality periodically | Record accommodation tax collected as a liability, not income; remit on the municipality's schedule |
| Platform booking (e.g. Airbnb, Booking.com) | In most Japanese cities the platform does NOT automatically collect shukuhaku-zei — the host remains responsible | Add the tax as a separate line item in your listing or collect on-site; keep remittance records |
| Exempt stays (e.g. below rate threshold) | No collection required if the nightly rate falls below the city's exemption threshold | Document the rate to demonstrate exemption if audited |
More than 17 prefectures, cities and towns now levy accommodation tax and more are expected to adopt it through 2026. Always check the current rules for your specific municipality before listing.
Platforms
How Booking Platforms Handle Japan STR Taxes
Platform tax-reporting and collection practices in Japan differ from those in the EU/US — hosts generally retain more direct responsibility.
| Platform | Reports your income | Collects the local lodging tax | Annual earnings summary |
|---|---|---|---|
| Airbnb | Does not report to the NTA on your behalf; hosts must self-report via Kakutei Shinkoku | Does not collect shukuhaku-zei in most Japanese cities — host responsibility | Annual earnings summary available in host dashboard (download as CSV) |
| Booking.com | Does not report to the NTA; host self-reports | Generally does not collect local accommodation tax in Japan — host responsibility | Monthly and annual payment statements available in extranet |
| Rakuten STAY / Japanese OTAs | Does not report to NTA; host self-reports | Varies by platform and municipality; confirm with each platform | Earnings reports available in host portal |
Using Multiple Platforms
If you list on Airbnb, Booking.com and direct channels simultaneously, you must aggregate all income across platforms for your Kakutei Shinkoku. There is no consolidated reporting from platforms to the NTA. Keep a master spreadsheet reconciling all booking revenue, platform fees deducted, and accommodation tax collected.
Japan & DAC7 / OECD Reporting Rules
Japan is not an EU member and DAC7 does not apply. However, Japan participates in the OECD's Common Reporting Standard (CRS) for financial account information. Separately, Japan's National Tax Agency may request platform data under domestic tax investigation powers. Non-resident hosts should be aware that their home country's tax authority may also receive information about Japan-sourced income under bilateral tax information exchange agreements.
Airbnb Help Centre (Japan tax information); NTA Japan — https://www.nta.go.jp
Illustrative P&L: Resident Host, Actual-Expense Method
Example only — a resident host earning ¥2,000,000 in STR income with typical expenses. Not tax advice.
Record-Keeping
Audit-Ready: What to Keep and for How Long
Japan's National Tax Agency can audit up to 5 years back for standard returns (7 years in cases of fraud). Keep these records organised.
| Keep | How long | Why |
|---|---|---|
| Booking records (guest names, dates, nightly rates, platform statements) | 7 years | Proves gross income declared matches actual receipts; required for NTA audit |
| Expense receipts (repairs, cleaning, utilities, management fees) | 7 years | Substantiates deductions claimed on Kakutei Shinkoku |
| Depreciation schedule (減価償却明細) and property purchase documents | Life of asset + 7 years | Required to calculate annual depreciation and eventual capital gain on sale |
| Accommodation tax (shukuhaku-zei) collection and remittance records | 5–7 years | Municipalities can audit accommodation tax compliance separately from income tax |
| Minpaku registration certificate and annual operating-day log (≤180 nights) | Duration of registration + 3 years | Minpaku Hō compliance; prefectural governors can inspect records at any time |
Non-residents must appoint a tax representative (納税管理人) resident in Japan before leaving the country if they continue to earn rental income. This person is legally responsible for filing and receiving NTA correspondence on your behalf.
Estimator
Short-Term Rental Tax Estimator
Plug in your bookings and costs to see your likely taxable position.
Your Numbers
Total short-term-rental income, before costs.
Allowable running costs, mortgage interest, depreciation and platform fees.
Your top income-tax band, as a percentage.
Estimated tax owed
Income tax on your net rental profit at your marginal rate.
Illustrative estimate. A simplified model to orient you — it is not tax advice. Confirm your situation with a qualified local professional.
Sources & notes
This page is for educational purposes only and does not constitute tax advice. Tax rules change frequently — always verify current rates and deadlines with the National Tax Agency (NTA) Japan or a qualified Japanese tax accountant (税理士). Non-residents should also consult the tax treaty between Japan and their home country.
- National Tax Agency Japan (NTA) — Income Tax — https://www.nta.go.jp/taxes/shiraberu/taxanswer/shotoku/shotokuindex.htm — official source for income tax rates, filing deadlines, and deduction rules (2024)
- NTA Japan — Real Estate Income (不動産所得) — https://www.nta.go.jp/taxes/shiraberu/taxanswer/shotoku/1370.htm — classification and calculation of rental income (2024)
- Ministry of Land, Infrastructure, Transport and Tourism (MLIT) — Minpaku Hō — https://www.mlit.go.jp/kankocho/minpaku/ — Private Lodging Business Act (住宅宿泊事業法), registration requirements and 180-night cap (2018/2024)
- Global Property Guide — Japan Taxes — https://www.globalpropertyguide.com/asia/japan/taxes-and-costs — non-resident withholding rate 20.42%, capital gains rates (2024)
- PwC Worldwide Tax Summaries — Japan Corporate Deductions — https://taxsummaries.pwc.com/japan/corporate/deductions — depreciation useful lives and methods (2024)
- Self Guide Japan — Japan Accommodation Tax 2026 — https://selfguidejapan.com/blog/japan-accommodation-tax-2026 — city-by-city shukuhaku-zei rates including Kyoto 2026 changes (2025/2026)
- Matcha-jp — Accommodation Tax in Japan 2026 — https://matcha-jp.com/en/9362 — Tokyo, Osaka, Kyoto, Kanazawa, Hokkaido rates (updated 2026)
- Wagaya Japan — Taxes on Real Estate Rental Income — https://wagaya-japan.com/en/journal_detail.php?id=8353 — overview of income tax on rental income for foreign investors (2023)
- Old Houses Japan — Taxation for Airbnb Hosts — https://www.oldhousesjapan.com/blog/taxation-for-airbnb-hosts-in-japan-what-foreigners-need-to-know — progressive rates, inhabitant tax, consumption tax threshold (2025)
- AirHost — 2026 Minpaku Tax Declaration Guide — https://airhost.sg/resources/2025-minpaku-tax-declaration — Kakutei Shinkoku filing guidance for minpaku hosts (2025/2026)
Questions
Frequently Asked Questions: Japan STR Taxes
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