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Cost of Living in Japan 2026: Prices, Rent, Wages and Tax

By the SettleBuddy editorial teamUpdated 13 October 20268 min read

Prices in Japan are rising slowly, by 1.9% in the past year, and the minimum wage has just had one of its largest increases on record. The numbers that matter most to a newcomer are housing, which costs noticeably more in Tokyo, and pay. This guide uses Japanese government figures, read on 13 October 2026, to show what things cost and what people earn.

Quick answer

Japan's Consumer Price Index rose 1.9% in the year to August 2026 and unemployment was 2.5%. An international student's living costs average 105,000 yen a month excluding tuition, with housing at 41,000 yen nationally and 57,000 yen in Tokyo. The national average minimum wage for fiscal 2026 is 1,177 yen an hour, up 56 yen, ranging from 1,085 yen to 1,280 yen by prefecture. Everyday prices from the government's retail survey: 5 kg of rice 4,979 yen, a litre of milk 267 yen, ten eggs 313 yen, a litre of gasoline 165 yen. Income tax runs from 5% to 45% in seven bands, starting at 5% on taxable income up to 1,949,000 yen.

The entrance gate and lit shops of the Yanaka Ginza shopping street in Tokyo at dusk
Yanaka Ginza shopping street, Tokyo, at dusk. Photo: Doricono / CC BY-SA 3.0 (Wikimedia Commons).

Everyday prices

These come from Japan's official Retail Price Survey of December 2025, as published on the government's Study in Japan site.

ItemPrice
Rice, 5 kg4,979 yen
White bread, 1 kg524 yen
Milk, 1 litre267 yen
Eggs, 10313 yen
Apples, 1 kg811 yen
Cabbage, 1 kg184 yen
Carbonated drink, 1 litre257 yen
Hamburger248 yen
Gasoline, 1 litre165 yen
Toilet paper, 1,000 m830 yen
Haircut4,377 yen
Taxi, 4 km1,732 yen

Housing and a monthly budget

The best official picture of a modest single budget comes from the Japan Student Services Organization, which surveys privately financed international students. Its 2023 survey puts average monthly living costs at 105,000 yen, excluding the cost of study.

MeasureMonthly amount
Total living costs, national average105,000 yen
Housing, national average41,000 yen
Housing, Tokyo57,000 yen

Rents in Tokyo and other large cities are higher than in rural areas, and in metropolitan areas it is hard to rent near a school, which pushes up commuting costs. These figures describe students' housing costs, not the wider rental market.

What people earn

The minimum wage

Japan sets its minimum wage by prefecture. For fiscal 2026 the Ministry of Health, Labour and Welfare reported the following, with the new rates taking effect in each prefecture between 1 October and 2 December 2026.

MeasureHourly rate
National weighted average, fiscal 20261,177 yen
National weighted average, previous year1,121 yen
Highest prefectural rate1,280 yen
Lowest prefectural rate1,085 yen

Every one of the 47 prefectures raised its rate, by between 54 and 65 yen. The 56-yen rise in the national average is the second largest since the current system began. The lowest rate is now 84.8% of the highest, a gap that has narrowed for 12 years running.

Part-time pay

Among international students who work part-time, half, 50.2%, earn between 1,000 and 1,200 yen an hour, 20.5% earn less than 1,000 yen and 20.5% earn between 1,200 and 1,400 yen. Average earnings from part-time work are about 81,000 yen a month, which is less than the average monthly living cost.

Jobs

The unemployment rate was 2.5% in August 2026, seasonally adjusted.

Inflation

The Consumer Price Index rose 1.9% over the year to August 2026, according to the Statistics Bureau of Japan. Household spending tells a more cautious story: consumption expenditure by households of two or more people fell 3.1% in real terms over the same year. Rice stood at close to 5,000 yen for 5 kg in the December survey.

Income tax

National income tax is charged in seven bands. This is the National Tax Agency's table, current as of 1 April 2026.

Taxable incomeRate
1,000 yen to 1,949,000 yen5%
1,950,000 yen to 3,299,000 yen10%
3,300,000 yen to 6,949,000 yen20%
6,950,000 yen to 8,999,000 yen23%
9,000,000 yen to 17,999,000 yen33%
18,000,000 yen to 39,999,000 yen40%
40,000,000 yen and over45%

A special reconstruction income tax of 2.1% of the income tax amount is collected on top. The table applies to taxable income, not to gross salary.

Studying: tuition on top

If you are coming to study, add tuition. First-year admission and tuition fees average about 820,000 yen at a national university, about 910,000 yen at a local public university and about 1,300,000 yen at a private one. Japanese language institutions charge about 610,000 to 1,900,000 yen. See our Japan student visa guide for the visa and work rules.

How to estimate your own budget

  1. Decide on the city first. Housing in Tokyo averages about 40% more than the national figure in the student survey.
  2. Price your commute along with your rent. Cheaper housing further out costs more in fares.
  3. Check your prefecture's minimum wage if you will be paid hourly. The range is 1,085 to 1,280 yen.
  4. Work out tax on taxable income, not gross pay, and add the 2.1% reconstruction tax.
  5. Budget for a one-off visa cost. Since 1 July 2026 a single-entry visa costs approximately 15,000 yen.

For moving costs, see our guide to the cost of moving to Japan.

Frequently asked questions

Is Japan expensive to live in?

Some reference prices: a litre of milk costs 267 yen and ten eggs 313 yen in the government's December 2025 retail survey. Housing is the main variable. International students spend an average of 105,000 yen a month on living costs, with housing at 41,000 yen nationally and 57,000 yen in Tokyo.

What is the minimum wage in Japan in 2026?

The national weighted average for fiscal 2026 is 1,177 yen an hour, up from 1,121 yen. Rates are set by prefecture and range from 1,085 yen to 1,280 yen, taking effect between 1 October and 2 December 2026.

What is the inflation rate in Japan?

The Consumer Price Index rose 1.9% over the year to August 2026, according to the Statistics Bureau of Japan.

How much is rent in Tokyo?

In the Japan Student Services Organization's survey, international students in Tokyo pay an average of 57,000 yen a month for housing, against a national average of 41,000 yen. Those are student figures.

How much income tax do you pay in Japan?

National income tax has seven bands from 5% to 45%. The 5% rate applies to taxable income up to 1,949,000 yen and the 20% rate from 3,300,000 yen. A special reconstruction income tax of 2.1% of the tax is added.

How much does food cost in Japan?

In the December 2025 Retail Price Survey, 5 kg of rice cost 4,979 yen, 1 kg of white bread 524 yen, a litre of milk 267 yen, ten eggs 313 yen and a hamburger 248 yen.

Can you live on a part-time job in Japan?

Not on its own, on average. International students who work part-time earn about 81,000 yen a month, while average living costs are 105,000 yen before tuition.

Sources (official only)

All figures verified against the official pages above on 13 October 2026. Prices and wages change, so check the latest official release. Information, not financial advice.

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