Planning a Budget Trip to Japan? Learn About Sayonara Tax

Indians planning a trip to Japan must adjust their travel budgets this year, as Japan has tripled its departure tax and updated local hotel levies. The international departure tax, often jokingly dubbed the ‘Sayonara Tax, has increased from ¥1,000 to ¥3,000 per person. This hike aims to help fund tourism infrastructure and manage rising overtourism in Japan.

What Is the Farewell Tax and How Does It Work?

The Departure or Sayonara Tax is a national fee collected from every foreigner leaving Japan by air or sea. For Indian tourists, the tax can be handled seamlessly during the booking process rather than at airport counters:

Automatic Collection: Airlines include the fee directly in the price of return tickets. This means that travellers do not need to queue or pay separately at the airport.
Universal Application: The tax applies to all departing passengers aged 2 years and above. This is regardless of nationality, visa status, or travel class.
Key Exemptions: Children under the age of two and transit passengers who remain in Japan for less than 24 hours are exempt from the charge.
Use of Funds: Revenue generated from the tax is used to fund airport facial recognition systems, improve multilingual guidance, preserve cultural sites, and promote lesser-known regional destinations.

Overview of Japan's Tourist Taxes

Other than the national departure levy, several Japanese cities impose local lodging taxes on hotel stays, and new rules for duty-free shopping are scheduled to take effect later this year:

Tax Category	Applicable Rates and Conditions
National Departure (Sayonara) Tax	Flat rate of ¥3,000 per person
Kyoto Accommodation Tax	Tiered rates up to ¥10,000 per night
Tokyo and Osaka Hotel Tax	Tiered rates up to ¥500 per night
Duty-Free Tax Refund	Airport-based refund system starting in November 2026

Starting in November 2026, Japan will also change its duty-free shopping process for international visitors. Tourists will have to pay the full retail price, including all the local sales tax. They can claim their tax refund at the airport before departure. This measure aims to prevent the illegal reselling of duty-free items within the country.

Key Takeaways for Indian Travellers

Indian tourists can avoid unexpected expenses during their trip to Japan by keeping a few practical budgeting points in mind:

Review Airfare Breakdowns: Verify that the departure tax is mentioned in your flight booking confirmation to ensure all taxes are accounted for.
Calculate Lodging Taxes in Advance: Don't forget to factor in local city taxes when planning room budgets, especially if you plan to stay in major tourist centres like Tokyo, Kyoto, or Osaka.
Adjust Shopping Budgets: If visiting after October 2026, be ready to pay local consumption tax upfront when shopping at retail stores. You can get your tax refunds for your departure at the airport.
Consider Lesser-known Areas: Exploring less popular provinces outside the regular tourist hubs like Tokyo and Kyoto will help lower overall accommodation costs. This will also help support sustainable regional travel.