Are taxes included in the displayed price when it comes to price tags in stores?
Uncover how Japan’s total price display law affects what you pay in stores and restaurants, and learn about hidden charges like the お通し fee.
“Are taxes included in the displayed price when it comes to price tags in stores?”
Yes — since 2021, Japanese law requires all stores to display tax-included prices. The price you see on the tag is the price you pay at the register. No surprises.
How It Works
Japan has a 10% consumption tax (similar to VAT or sales tax). Since April 2021, stores must show the total price including this tax. So if a tag says ¥1,100, that’s exactly what you’ll pay.
Exceptions to Know
Reduced Tax Rate (8%)
Some items have a lower 8% tax rate:
- Groceries and food (to eat at home)
- Non-alcoholic beverages
- Newspapers
If you eat the same food inside the restaurant, it’s 10%. Take it out, and it’s 8%. This is why some convenience stores ask “こちらでお召し上がりですか？” (Will you eat here?) — the tax changes!
Tax-Free Shopping for Tourists
As a foreign visitor, you can get the full 10% tax removed on purchases over ¥5,000 at tax-free shops. Look for the “Japan Tax-Free Shop” logo. You’ll need your passport.
Price Tag Formats You’ll See
| Tag Shows | Meaning |
|---|---|
| ¥1,100 (税込) | ¥1,100 total — tax included |
| ¥1,000 + tax | You’ll pay ¥1,100 at the register |
| ¥1,000 (税抜) | Tax not included — add 10% |
Tip: “税込” (zeikomi) means tax included. “税抜” (zeinuki) means tax excluded. Look for these characters on price tags.
Practical Tips
- Convenience stores — always tax-included pricing
- Department stores — usually tax-included, with tax-free counters for tourists
- 100 yen shops (Daiso, etc.) — items are actually ¥110 with tax
- Restaurants — price on menu = price you pay (no tipping needed either!)
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