Japan Consumption Tax & Discount Calculator
Convert between tax-included and tax-excluded prices with Japan's 10% / reduced 8% consumption tax — including the planned 1% food rate from April 2027 — total a receipt from either tax-included or tax-excluded amounts with rounding applied once per rate, plus percent-off discounts.
Japan's consumption tax in one minute
Japan's consumption tax (shōhizei) is 10%, with a reduced 8% rate for take-away food, groceries, and subscription newspapers (restaurant dining and alcohol are 10%). Price tags may show tax-included or tax-excluded amounts — this tool converts both ways, and also handles percent-off sale math.
Coming change: under a cabinet decision of August 2026, the rate on food items currently at 8% is planned to drop to 1% for two years from April 1, 2027 (returning to 8% in April 2029). The "Food 1%" option covers this upcoming rate; the enacting law had not yet passed at the time of writing, so details may change.
Why your receipt may differ by ¥1
Japanese law lets each retailer choose how to handle fractional yen on tax: round down, round to nearest, or round up. Rounding down is the most common choice, so it's the default here — switch the setting if a receipt disagrees by a yen.
How many times the rounding happens is fixed, though. Since the qualified invoice system began in October 2023, a compliant invoice rounds once per tax rate, not once per line item. "Receipt total" gives that figure as the answer and shows the per-item figure alongside it, because the two can differ by several yen — which is usually where a receipt and your mental arithmetic part ways.
Since April 2021 shop prices in Japan must be shown tax-included, so the figures on a tag or a receipt line already contain the tax. "Receipt total" therefore takes tax-included amounts by default, and divides the tax back out (amount × rate ÷ (100 + rate)), again rounding once per rate. Which side you enter changes what moves: with tax-excluded amounts the payable total itself shifts with the rounding method, while with tax-included amounts the total is fixed by the sum and only the tax breakdown shifts.