Educational information only, not tax advice. Rules and figures change — confirm your situation with a qualified Japan tax professional before filing.
Tokyo, Japan · Japan · Short-term rental taxes
Short-Term Rental Taxes in Tokyo, Japan
STR income in Tokyo is taxed as individual income under Japan's progressive income tax system, with a separate per-night accommodation tax (shukuhaku-zei) collected from guests.
The 30-Second Answer
- All STR income must be declared as Individual Income Tax (shotoku-zei) at Japan's progressive rates of 5%–45%, plus a Local Inhabitants Tax (jumin-zei) of approximately 10% on top.
- Tokyo levies an Accommodation Tax (shukuhaku-zei) on guests: currently ¥100–¥200 per person per night depending on room rate; a new 3% rate replacing the flat fee is scheduled from April 1, 2027, covering vacation rentals and guesthouses (stays under ¥13,000/person/night exempt).
- Hosts earning over ¥10 million in taxable sales in a prior base period may be required to register for and remit Japanese Consumption Tax (JCT / shohi-zei) at 10%.
- File your annual Kakutei Shinkoku (確定申告) income tax return between February 16 and March 15 each year for the prior calendar year; deductible expenses such as repairs, utilities, management fees, and depreciation reduce taxable rental income.
Deductions
What Tokyo STR Hosts Can Deduct
Japan's tax rules allow hosts to subtract 'necessary expenses' (hitsuyou keihi) from gross rental income before calculating taxable income — keep receipts for everything.
Where a property is used partly for personal use and partly for STR, only the STR-proportionate share of expenses is deductible. Depreciation on the building structure (not land) is also deductible using the straight-line method over the statutory useful life.
Filing Calendar
Key Dates & Filing Calendar
Japan's tax year runs January 1 – December 31; the annual income tax return (kakutei shinkoku) covers the prior calendar year.
From April 1, 2027, Tokyo's new 3% Accommodation Tax applies to STR stays ≥ ¥13,000/person/night — hosts and platforms must be ready to collect and remit.
National Tax Agency Japan (NTA) — kakutei shinkoku guidance; Tokyo Metropolitan Government — shukuhaku-zei ordinance (2026)
Income Tax Treatment
How STR Income Is Classified & Taxed in Japan
Unlike some countries, Japan does not offer a flat-rate micro-enterprise allowance for STR income. Instead, the classification of your income (miscellaneous vs. business income) determines which deductions and blue-form benefits you can access.
Miscellaneous Income (Zakka Shotoku)
Default for small-scale or occasional STR hosts
- STR income is added to other income and taxed at progressive rates 5%–45% plus 10% jumin-zei.
- Necessary expenses (repairs, utilities, depreciation, etc.) are still deductible against the rental income.
- Cannot carry forward losses to offset future years' income.
- Simpler record-keeping; white-form (shiro shinkoku) filing is sufficient.
No formal ceiling — applies when activity is not deemed a 'business'
Business Income (Jigyo Shotoku) — Blue-Form Filing
For hosts running STR at a business scale
- Elect the Ao-iro Shinkoku (Blue-Form Return) to access up to ¥650,000 special deduction (or ¥550,000 without e-Tax) against business income.
- Losses can be carried forward for up to 3 years to offset future profits.
- Allows deduction of a family member's salary (if they genuinely work in the business) as a business expense.
- Requires double-entry bookkeeping and advance registration with the NTA.
No income ceiling — requires NTA recognition as a business activity
Depreciation
Depreciation of STR Property & Assets in Japan
Building structures (but not land) and furnishings used in your STR can be depreciated using the straight-line method over NTA-prescribed useful lives, reducing your taxable rental income each year.
| Asset | Typical write-off period | Notes |
|---|---|---|
| Reinforced concrete (RC) residential building | 47 years | Straight-line method only for buildings acquired after 1998; land is never depreciable. |
| Light-gauge steel / wooden residential building | 22 years (wood) / 19–27 years (light steel) | Useful life depends on construction material; NTA tables prescribe exact periods. |
| Furniture & fixtures (STR furnishings) | 8 years | Declining-balance or straight-line; items under ¥100,000 may be expensed immediately. |
| Air conditioning / heating equipment | 15 years | Classified as building attachments (kenchiku fuzoku setsubi); straight-line only. |
Only the STR-use proportion of a mixed-use property is depreciable as a business/rental expense. Keep purchase contracts and registration documents to substantiate the asset cost basis.
Japan does not have a formal 'depreciation recapture' tax separate from capital gains, but accumulated depreciation reduces the cost basis of the property, increasing the taxable capital gain (joto shotoku) on eventual sale. Capital gains on real estate held over 5 years are taxed at a combined rate of approximately 20.315% (15% national + 5% local + 0.315% reconstruction surtax).
Shukuhaku-zei (宿泊税)
Tokyo Accommodation Tax (Shukuhaku-zei)
Tokyo was Japan's first city to introduce an accommodation tax. The current flat-rate system is being replaced by a percentage-based system from April 2027.
The Tokyo Metropolitan Government levies a shukuhaku-zei (accommodation/lodging tax) on guests staying in hotels, ryokans, guesthouses, and — from April 2027 — vacation rentals. The tax is collected from the guest and remitted to the Tokyo Metropolitan Government by the accommodation provider (or platform).
Current maximum: ¥200/person/night; From April 2027: 3% of room charge (no cap stated)
Tokyo Metropolitan Government — Shukuhaku-zei ordinance; NTV News Japan report, July 2026
| Booking type | Who collects & remits | What it means for your books |
|---|---|---|
| Direct booking (host collects payment) | Host collects from guest and remits to Tokyo Metropolitan Government | Record accommodation tax separately from rental income; remit on the Tokyo Metropolitan Government's prescribed schedule. |
| Airbnb / OTA booking (platform collects payment) | Platform may collect and remit on host's behalf — confirm with each platform | Verify whether the platform remits the tax; if not, the host remains responsible. Do not double-count as your income. |
The accommodation tax is a guest-side charge and is not part of the host's taxable rental income. From April 1, 2027, the new 3% rate will apply to vacation rentals and guesthouses in addition to hotels, with stays under ¥13,000/person/night exempt.
Platforms
How Airbnb & Other Platforms Handle Reporting in Japan
Platforms operating in Japan may report host income to the NTA and, from 2027, will be expected to collect the new percentage-based Tokyo accommodation tax.
| Platform | Reports your income | Collects the local lodging tax | Annual earnings summary |
|---|---|---|---|
| Airbnb | Yes — Airbnb has noted an obligation to report income earned by users; mismatches with your return may trigger NTA enquiries | Partial — Airbnb collects Tokyo shukuhaku-zei in some cases; confirm current status with Airbnb Japan | Annual earnings summary available in your Airbnb account; use for your kakutei shinkoku filing |
| Vrbo / Expedia | Unclear — check platform's Japan-specific tax guidance | Not confirmed for Tokyo shukuhaku-zei — host may need to collect and remit directly | Download transaction history from host dashboard for tax records |
| Direct / own website | No automatic reporting — host is solely responsible | Host must collect and remit accommodation tax directly to Tokyo Metropolitan Government | Maintain your own income and expense ledger; no platform summary provided |
Hosting on Multiple Platforms
If you list on Airbnb, Vrbo, and direct bookings simultaneously, you must aggregate all income across platforms for your kakutei shinkoku. There is no de minimis exemption — all STR income is taxable regardless of amount or platform. Keep separate records per platform to reconcile totals.
Japan Platform Reporting (Not EU DAC7)
Japan is not subject to the EU's DAC7 directive. However, Japan's NTA has its own information-exchange frameworks and platforms operating in Japan may be required under Japanese law to report user income. Airbnb's Japan tax guide explicitly notes a potential reporting obligation. Always ensure your declared income matches platform records.
Airbnb Japan Tax Guide 2025 (assets.airbnb.com); NTA Japan — kakutei shinkoku guidance
Illustrative P&L: Miscellaneous vs. Business (Blue-Form) Income
Example based on a Tokyo STR earning ¥2,000,000 gross annually. For illustration only — not tax advice.
Record-Keeping
Stay Audit-Ready: What to Keep & For How Long
Japan's NTA can request documentation to verify rental income and deductions. Good records protect you and support every deduction you claim.
| Keep | How long | Why |
|---|---|---|
| Booking records & platform payout statements (all platforms) | 7 years | Proves gross rental income declared in your kakutei shinkoku; NTA standard document retention period for business records |
| Receipts for all deductible expenses (repairs, utilities, cleaning, management fees, insurance) | 7 years | Substantiates necessary expense deductions; without receipts, the NTA may disallow the deduction |
| Property purchase contract, registration documents, and depreciation schedule | Life of ownership + 7 years after sale | Establishes cost basis for depreciation calculations and eventual capital gains tax on sale |
| Accommodation tax (shukuhaku-zei) collection and remittance records | 7 years | Demonstrates compliance with Tokyo Metropolitan Government lodging tax obligations |
| Blue-Form (Ao-iro Shinkoku) registration and double-entry bookkeeping ledgers (if applicable) | 7 years | Required to substantiate the ¥650,000 special deduction and any loss carry-forwards |
Japan's standard tax document retention period for business/rental records is 7 years. If you use Blue-Form filing, double-entry bookkeeping records must be retained for the same period. Store digital copies securely — the NTA accepts electronic records.
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 laws change frequently — always verify current rules with the NTA, Tokyo Metropolitan Government, or a qualified Japanese tax professional (zeirishi) before filing.
- Airbnb Japan Tax Guide 2025 (NTA-referenced) — Covers Individual Income Tax (shotoku-zei), Japanese Consumption Tax (JCT), Fixed Assets Tax, and platform reporting obligations for Japan STR hosts. URL: assets.airbnb.com/help/Airbnb_TaxGuide2025_Japan_ENGLISH.pdf
- NTV News Japan — Tokyo 3% Accommodation Tax (July 2026) — Reports Tokyo Metropolitan Government's decision to replace flat shukuhaku-zei with a 3% rate from April 1, 2027, covering vacation rentals; stays under ¥13,000/person/night exempt. URL: youtube.com/watch?v=YyyNTjjnZW8
- Matcha-JP — Accommodation Tax in Japan 2026 — Overview of shukuhaku-zei rates across Tokyo, Kyoto, Osaka, and other cities; current Tokyo flat rates of ¥100–¥200 per person per night. URL: matcha-jp.com/en/9362
- Real Estate Tokyo / Plaza Homes — Rental Income Tax in Japan — Explains calculation of taxable rental income, necessary expense deductions, and applicable tax rates for Japan property owners. URL: realestate-tokyo.com/news/income-tax-on-rental-real-estate-income/
- PwC Worldwide Tax Summaries — Japan Corporate Deductions (Depreciation) — NTA-prescribed useful lives for depreciable assets including buildings (RC: 47 years, wood: 22 years), electrical/HVAC (15 years), and furniture. URL: taxsummaries.pwc.com/japan/corporate/deductions
- Old Houses Japan — Taxation for Airbnb Hosts in Japan — Summary of income tax rates (5%–45%), 10% jumin-zei, Fixed Asset Tax, and JCT threshold (¥10 million) for Japan STR hosts. URL: oldhousesjapan.com/blog/taxation-for-airbnb-hosts-in-japan-what-foreigners-need-to-know
Questions
Frequently Asked Questions — Tokyo STR Taxes
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