Japan Tokyo · JPY

What currency does Japan use, and is cash still needed?

Japan's currency is the yen, code JPY. Coins go up to 500 yen and notes start at 1,000 yen. A new series of banknotes entered circulation in 2024, and the older notes remain valid.

Cash is still common, especially at small restaurants, shrines, local shops and rural businesses, and ATMs in convenience stores and post offices generally accept foreign cards. Credit and debit cards are widely accepted in supermarkets, chain stores and hotels, and rechargeable transit cards also pay for small purchases at many shops and vending machines. QR-code payments are widespread too, though mostly through domestic apps.

Where do people in Japan buy groceries and everyday goods?

Supermarkets are the main stop for groceries in Japan, and many put discount stickers on fresh food, bento boxes and prepared dishes in the evening, often in stages as closing time nears. Convenience stores, open 24 hours in most towns, sell ready meals, drinks and basics, and also handle bill payments and parcel collection.

Department store food halls in the basement sell premium food and gifts, while drugstores carry snacks, drinks and household goods at competitive prices alongside medicines. Discount variety stores and 100-yen shops cover household items. Prices are fixed, bargaining is not part of shopping in Japan, and most shops open on Sundays.

Is consumption tax included in prices in Japan?

Yes. Japan's consumption tax, its equivalent of VAT, is 10% as standard and 8% on food and non-alcoholic drinks bought to take away. Since 2021 shops must show the tax-inclusive total, although many tags also print the pre-tax price, sometimes in larger digits, so look for the figure marked as including tax.

Eating in at a restaurant is charged at the standard rate. Visitors can get consumption tax back on many goods from participating tax-free shops. Since 1 November 2026, shops charge the tax at the till and refund it once customs confirms at departure that the goods are leaving Japan with you, so keep your passport and purchases ready for checking.

Why have prices in Japan been rising?

After many years of very low inflation, prices in Japan began rising steadily from 2022. A weaker yen made imported food, fuel and raw materials more expensive, and many manufacturers raised prices or reduced pack sizes in response. Rice became a headline issue when its price rose sharply in 2024 and 2025. Because both the yen and shelf prices have moved, the date we read each price on this page matters when you compare.