Hakone's New Accommodation Tax: What ¥350 per Guest per Night Means for STR Owners and Investors

Hakone will charge a flat ¥350 per guest per night on all lodging, including minpaku, with a target start of April 2028. In our view, the impact on high-end whole-house rentals is small. Lower-priced properties will feel it more.

1. The Bottom Line

On October 2, 2026, the Hakone Town Assembly passed an ordinance creating a new accommodation tax. The tax is a flat ¥350 per guest per night. It applies to hotels, ryokan and simple lodging facilities (kan'i shukusho), which all need a license under the Hotel Business Act. It also applies to minpaku, the private rentals registered under the Housing Accommodation Business Act. Children of elementary school age and younger are exempt, and so are school trips.

The town is aiming to start the tax in April 2028. The official start date will be set by the town after it receives the consent of Japan's Minister for Internal Affairs and Communications.

In our view, ¥350 is a small amount for a whole-house rental with a high nightly rate and a high rate per guest, and we expect little effect on demand or pricing. The properties that should pay attention are minpaku and simple lodging facilities with a low price per guest.

2. Key Points of the Tax

• Amount: ¥350 per guest per night, the same at every price level.
• Age: Children of elementary school age and younger are exempt. Guests of junior high school age and older pay the full ¥350.
• Properties covered: Hotels, ryokan, simple lodging facilities and minpaku. The type of license makes no difference.
• Bathing tax: Hakone already has a bathing tax (nyuto-zei), a municipal tax on overnight guests who use hot springs. It is ¥150 per guest per night, and children under 12 are exempt. At properties with hot springs, the two taxes together come to ¥500 per guest per night.

The money can be spent on any purpose. Hakone has about 20 million visitors a year but only about 10,000 residents, and the town gives the cost of waste collection, fire services and ambulances as its reason for the tax.

3. When It Starts

The ordinance does not give a start date. Instead, the town will set the date by regulation within two years of receiving the Minister's consent. The town's stated target is April 2028. Some media reports have said April 2027, but town documents point to April 2028. The tax will apply to stays from the start date onward. What counts is the night of the stay, not the date the booking was made.

4. How Hakone Compares with Tokyo and Kyoto

Hakone charges the same flat amount whatever the room rate. Tokyo will switch to a 3% tax on the room rate from April 2027. Kyoto uses five flat-rate bands that rise with the price. So the more expensive the stay, the lighter Hakone's tax is in comparison.

For example, on a stay of ¥50,000 per guest, the tax is ¥1,500 per guest in Tokyo and ¥4,000 in Kyoto. In Hakone it is still ¥350. Please note that The Room does not operate in Kyoto.

5. What Owners Need to Do

• Collect and file monthly: The operator collects the tax from guests. By the end of each month, the operator files and pays the previous month's tax to the town. Properties subject to the bathing tax file that tax separately.
• Register before the start date: Properties already operating, and any that open before the start date, must submit a filing for each property by the day before the tax starts.
• Owners living overseas: If the operator has no address or office in Hakone, the operator generally has to appoint a tax agent (nozei kanrinin) to handle filings and payments. Agree on who does what with your management company in advance.
• Price display: Decide for each property whether the tax is included in the room rate or shown as a separate charge.

6. What It Means for Investment Decisions (Our View)

High-end whole-house rentals: ¥350 is small next to the nightly rate. If the tax is shown as a separate charge, the room rate itself can stay the same. We expect almost no effect on demand.

Low-priced minpaku and simple lodging: The lower the price per guest, the heavier ¥350 becomes. Guests in this segment compare prices closely. Whether you pass the tax on or absorb it will affect your occupancy or your net income.

The opportunity: The tax revenue will fund waste collection, fire services and ambulances, which protect both the area's reputation and guest safety. Tokyo is moving to a percentage tax, but Hakone has chosen a flat amount, so Hakone's tax gets relatively lighter as the stay gets more expensive. The ordinance is reviewed every five years, so it may change. Even so, in our view, properties whose location and facilities command a high rate per guest will keep the advantage for the foreseeable future. For more on the local market, see our Hakone STR market analysis. For how accommodation taxes work in day-to-day operations, see Japan's Accommodation Tax Is a Monthly Task.

7. Summary

• ¥350 per guest per night on every type of lodging, minpaku included. Children of elementary school age and younger are exempt.
• The town's target start is April 2028. The official date will be set after national government consent.
• At properties with hot springs, the bathing tax brings the total to ¥500 per guest per night.
• In our view, the impact on high-end whole-house rentals is small, while lower-priced properties will feel it more.

How the tax applies depends on each property's license and operating structure. Please consult a tax accountant or other qualified professional for advice on your specific situation.

Operating high-end whole-house rentals in Hakone is what The Room does best. If you would like help with pricing or tax filing under the new tax, please get in touch.