Money in Japan: Yen, Cash, IC Cards, Taxis and Tax-Free Shopping

Japan does not require a cash-only holiday, but relying on a single bank card is not a robust plan either. A mix of yen, a payment card and a suitable stored-value transport card makes everyday spending easier. Budget for local accommodation taxes and note that tax-free shopping changes for purchases from November 2026.

Japan · packing4two

Yen, notes and useful small change

The currency is the Japanese yen, JPY, written ¥ or 円. Everyday prices use whole yen. Coins are 1, 5, 10, 50, 100 and 500 yen; notes are 1,000, 2,000, 5,000 and 10,000 yen. The 2,000-yen note is less common. The new banknote series introduced in 2024 did not automatically invalidate the previous one.

A small coin pouch and some 1,000-yen notes are useful for minor purchases. Check which notes and coins a machine accepts. Use the converter to establish a sense of scale rather than judging a price by the number of zeros.

Cash versus cards

International cards are accepted at many hotels, shops and restaurants. Small businesses, temples, ticket machines and local transport can still require cash or another payment method. Ask before ordering if acceptance is unclear.

For an urban family day, a backup cash reserve of 10,000–20,000 yen can be a starting point rather than a forecast of total spending. Adjust to the route. Check remote accommodation for larger cash payments in advance, split your cash and keep a separate backup card.

Withdrawing yen with a foreign card

Seven Bank ATMs, including those in many 7-Eleven stores, support numerous international card brands. The usual per-transaction overseas-card withdrawal ceiling is 100,000 yen, but your card type, issuer limits and service availability can impose a lower limit.

Select JPY and read the charges before confirming. If the ATM offers conversion into your home currency, compare it with your card terms rather than accepting automatically. Declining conversion may not remove the operator’s withdrawal fee. Know your PIN and confirm overseas cash withdrawals are enabled.

Suica and IC cards for small payments

Suica is a reloadable smart transit card, part of the IC family of chip-based contactless cards. It and compatible cards work on supported trains, buses and other transport, and at participating shops and machines. They hold prepaid value; they are neither credit cards nor unlimited-travel passes. Each passenger needs their own card for a journey.

A physical card is topped up at a compatible machine following its instructions, often with cash. The Welcome Suica Mobile app on supported devices allows topping up with an eligible card in Apple Pay. Physical and mobile products have different terms: the physical Welcome Suica has a 28-day usage period. Check the chosen product’s expiry and refund rules before loading a large balance.

Taxi payments and the GO app

In the GO app, add a supported international card and confirm the destination, pickup point, booking charges and payment method before ordering. Test registration and SMS verification before you need a taxi urgently.

For a street-hailed taxi, look for payment logos and confirm acceptance before travelling. GO Pay also supports app payment in some street-hailed taxis by scanning the appropriate code, but not every vehicle supports it. Keep an alternative payment method and check whether a failed-looking transaction actually completed before paying again.

Tipping is generally unnecessary

Routine tipping is not expected in restaurants, taxis or hotels. Cash left on a table may be treated as forgotten money. A warm thank-you is the straightforward way to show appreciation.

Specialised services such as private guiding for international visitors may state different arrangements. Do not apply a fixed tipping percentage to every Japanese service. Read separately listed service charges or other additions; they are not necessarily a discretionary gratuity.

Consumption tax and displayed prices

The standard consumption tax is 10%. Certain food and drink, excluding alcohol and dining in, qualify for 8%, which can make takeaway and eat-in prices differ at the same cafe.

Look for the tax-inclusive amount: 税込 means including tax and 税抜 means before tax. Both may be shown. At a 10% rate, a 1,100-yen inclusive price contains 100 yen tax, not 110. Compare the final payable total and any applicable service charges.

Local accommodation tax: Kyoto matters

Japan does not have one uniform hotel-tax tariff. In Kyoto from 1 March 2026, the per-person nightly tax is 200 yen for accommodation below 6,000 yen; 400 for 6,000–19,999; 1,000 for 20,000–49,999; 4,000 for 50,000–99,999; and 10,000 for 100,000 yen or more.

The basis is the accommodation component per person, not simply a single room-level fee. Ask the property to explain the calculation and any amount already collected. Other cities differ and some bathing destinations impose separate local charges. Accommodation taxes are not tourist shopping refunds.

Purchases through 31 October 2026

Under the existing system, eligible visitors can receive tax exemption at participating shops or their designated counters. Present your passport and establish eligibility at purchase. The normal threshold is 5,000 yen before tax at one shop on one day; consumables also have special packaging rules and a 500,000-yen ceiling.

Do not open specially sealed tax-free consumables or consume them in Japan before export. Keep the goods and documents available for inspection. Not every shop, product or immigration status qualifies.

Purchases from 1 November 2026: the refund method

For purchases from 1 November 2026, pay the tax-inclusive price and receive a refund after export confirmation. Complete departure customs procedures within 90 days of purchase, with the goods available before checking luggage. The 5,000-yen pre-tax threshold per shop per day remains.

Special consumable packaging is abolished, but goods already consumed in Japan are ineligible. One missing item can invalidate refund confirmation for the whole receipt. The retailer or its refund provider pays the refund, not necessarily airport customs in cash. Confirm the method and fees and allow time at departure.

Allow for holds and the full trip cost

Hotel and rental-car authorisations may be temporary rather than final charges, but need available card capacity. Keep receipts until settlement. For a driving trip, parking and expressway tolls can materially add to the advertised rental price.

Compare accommodation as a complete package: actual beds, transport access, local taxes, meals and cancellation terms. A cheaper room can cost more in taxi journeys, while one that fits your family well can simplify the whole day.

We stayed at RESI STAY Hotel SUN CHLORELLA on our Japan trip and recommend it. Compare rooms for your party, cancellation terms and whether the local accommodation tax is included. Rooms and prices on Trip.com