Japan Consumption Tax Rates: The 10 Percent Standard and 8 Percent Reduced Rates
Japan consumption tax rates run at two levels: a 10 percent standard rate on most goods and services and an 8 percent reduced rate on groceries and qualifying newspapers.1 The till receipt, not memory, tells you which rate each item drew.
Procedures, fees, and requirements can change. Confirm current details at the National Tax Agency site. This article is general information, not tax advice; for your specific case, consult a licensed tax accountant (zeirishi).
Overview
Japan's 消費税 (shōhizei, "consumption tax") is a broad levy on domestic transactions, collected stage by stage with the final consumer carrying the cost.2 Since October 1, 2019 it has run as a dual-rate system: 10 percent standard, 8 percent reduced.1 The rule is national and uniform, so no ward or city office applies a local variant.
The two rates and the national/local split
Each headline rate bundles a national consumption tax with a local consumption tax worth 22/78 of the national amount.1 The split matters when you read NTA tables, since the agency quotes both legs separately.
The 10 percent standard rate
The standard rate totals 10 percent: 7.8 percent national plus 2.2 percent local (as of 2026-09; confirm current figures with the NTA).1 It covers most goods and services outside the reduced-rate basket, from restaurant meals eaten on site to electronics, clothing, and services.3
The 8 percent reduced rate
The reduced rate totals 8 percent: 6.24 percent national plus 1.76 percent local (as of 2026-09).1 It covers food and non-alcoholic drink for human consumption plus subscription newspapers issued at least twice weekly carrying general news.34
| Rate | Total | National leg | Local leg | Basket (as of 2026-09) |
|---|---|---|---|---|
| Standard | 10% | 7.8% | 2.2% | Most goods and services1 |
| Reduced (軽減税率, keigen zeiritsu, "reduced tax rate") | 8% | 6.24% | 1.76% | Groceries excluding alcohol and dining out; qualifying newspapers3 |
The table as a whole reflects the NTA English rate page (as of 2026-09; confirm current figures with the NTA).1
Eat-in vs take-out: the rule that confuses shoppers
The documented bento-shop confusion has a single root: eat-in service at premises with dining facilities, or 外食 (gaishoku, "eat-in dining-out service"), is excluded from the reduced rate and taxed at 10 percent, while take-out of the same food for home consumption draws 8 percent.3 The business judges the rate when it provides the food, so your answer at the till fixes the number.3
Catering with on-site cooking or service at a place you designate is likewise excluded from the reduced rate.3 A sale made as food for human consumption still counts as a grocery transfer at the reduced rate even if the buyer later uses it for another purpose.3
Once the sale is recorded at one rate, the receipt keeps it. If the shop asks, answer clearly; if it does not ask, volunteer the choice.
The diagram restates the NTA dine-in rule above: facilities and service decide, not the food itself.3
Rate history: 3% to 5% to 8% to 10%
Japan introduced consumption tax at 3 percent in April 1989, raised it to 5 percent in April 1997, then to 8 percent in April 2014.5 The October 1, 2019 raise to 10 percent created the current dual-rate structure, pairing the new standard rate with the 8 percent reduced rate for groceries and newspapers.13
The headline coincidence confuses: the post-2019 8 percent is not the pre-2019 8 percent. Before October 2019 the 8 percent split as 6.3 percent national plus 1.7 percent local; from October 2019 the reduced 8 percent splits as 6.24 percent national plus 1.76 percent local (as of 2026-09).1
The shelf total reads 8 percent in both eras, but the national/local legs moved. The distinction matters only for filings and invoice records, not for what you paid.
How the rate shows on receipts and invoices
Shelf prices display tax-included totals, so the till holds no surprise.4 The receipt then breaks out per-rate subtotals, typically marking lines such as 8%対象 (reduced-rate items) and 10%対象 (standard-rate items), and ledgers carry a rate column for the same split.4
Sellers who issue qualified invoices total amounts by rate on the same basis, since the buyer's input-credit claim is computed per rate.2 Keep receipts whose per-rate lines feed an expense claim; a bare total without the split is harder to book.
Good to know
The shelf price already includes the tax
Displayed prices are tax-included by rule, so the number on the tag is the number you pay.4 The rate split appears only in the receipt breakdown, which is where to look when a mixed basket totals unexpectedly.
The register decides eat-in vs take-out at the till
Because the business judges the rate at provision time, an unclear answer at the counter becomes the recorded rate.3 Convenience-storeイートイン corners count as dining facilities, so a bento eaten there draws 10 percent while the same bento carried out draws 8 percent.
The 8% on the shelf is not the pre-2019 8%
The same headline total hides a changed national/local breakdown (6.24 plus 1.76 now, against 6.3 plus 1.7 before October 2019) (as of 2026-09).1 Nothing in your shopping changes, but filings, ledgers, and invoice software must use the current legs.
See also
- Registering as a Sole Proprietor (Kojin Jigyounushi)
- Client-Side Withholding (Gensen Choshu)
- The Residence-Tax Year-Two Surprise
- The Qualified Invoice System for Freelancers: Register or Absorb
- The Under-10M-Yen Consumption Tax Exemption
- Tax-Free Shopping in Japan Is Not for Residents