Reading a Japanese menu price: tax included, service charges, market price and no tipping

A Japanese menu price is usually what you pay. That is the law’s intention, and since 2021 it has applied without exception to prices shown in advance. But four things can still make the bill differ from the number you read: a service charge added on top, a different tax rate depending on where you eat, a cover charge, and the items with no price at all. This column explains each, from the official sources.

The rule: prices shown must include tax

Under Article 63 of the Consumption Tax Act, when a business shows a price to consumers in advance, it must show the price including consumption tax. The tax agency’s examples, at the standard rate, are all acceptable: “¥11,000”, “¥11,000 (tax incl.)”, “¥11,000 (¥10,000 before tax)”, “¥11,000 (of which tax ¥1,000)”.

Why. The finance ministry gives the reasons: with only pre-tax prices, it is hard to know what you will pay until the till, and with some shops showing tax-included and others pre-tax, prices are hard to compare. The rule makes the full price visible at a glance.

Since when. The obligation began on 1 April 2004. From October 2013 to 31 March 2021 a special measure let businesses show prices without tax; since 1 April 2021 tax-included display has been required again.

What it does not cover. Prices given verbally, invoices, receipts and estimates are outside the rule. And it does not force a business to show a price it is not showing.

How it can look. The word “tax included” is not required, and a pre-tax price or the tax amount may be shown alongside. So a menu where the pre-tax figure is large and the tax-included one smaller can still meet the rule, as long as the tax-included price is shown. Whether a particular menu does is not something I judge here.

A service charge on top

The finance ministry’s own Q&A shows how a service charge works with tax-included prices. Before tax-included display, a restaurant might say “a separate 10% service charge applies”; after, “a 10% service charge is added to the tax-included price”. Its example: a meal of ¥3,000 before tax is ¥3,300 with tax; a 10% service charge on that is ¥330; the total is ¥3,630.

So a service charge on top of the menu price is a recognised arrangement. Which restaurants charge one, and how much, varies; I found no official figures. Look for it on the menu, or ask.

Eating in or taking away

Takeaway and delivery food is taxed at the reduced rate; eating in is taxed at the standard rate. So the same item can have two tax-included prices. When they differ, the government’s guidance says a shop should, for example, post a notice somewhere visible that the tax may differ depending on the customer’s choice. A tax agency leaflet’s example is a filled bread roll: ¥162 to take away, ¥165 to eat in.

A change is proposed. In September 2026 the tax agency published a Q&A on a plan, approved by the cabinet on 15 September 2026, to cut the tax on food and drink to 1% for two years from 1 April 2027 — food and takeaway included, eating out and alcohol not. The Q&A states that it assumes a bill is passed. The bill was received by the House of Representatives on 9 October 2026; as of 15 October 2026 the House’s record of the bill shows no vote and no enactment. Until a law is passed, the current rates above apply.

No tipping

JNTO says tipping is not customary for services such as bars, cafés, restaurants, taxis and hotels. Exceptions are rare: an interpreter or private guide may be given kokorozuke, a gift of thanks, but it is not expected, it is done discreetly, and the custom is to put it in an envelope, which convenience stores, stationers and ¥100 shops sell. Tokyo’s tourism site explains it from the bill: service is usually already included, so there is no need to tip. I found no official account of the history behind the custom.

Cover charges and small dishes

At izakaya, a small dish called otoshi is served to everyone and charged as a table charge. That has its own page: see the izakaya overview.

Market price

Some menus give no price for certain items — jika, market price. Market-area restaurants use it for things such as sea urchin bowls or live squid. I found no official rule on how such items must be explained. What the law does say is that tax-included display applies when a price is shown, not when it is not. The practical step is simple: ask the price before you order.

Where you pay

At the table or at a register by the door; Tokyo’s tourism site says it depends on the shop.

What people get wrong

• “Japanese prices exclude tax, like in the US.” Since 2021, prices shown in advance must include it.
• “The menu price is always the final price.” A service charge, a different tax rate for eating in, or a cover charge may be added.
• “Leave a tip for good service.” It is not customary, and service is usually included.
• “Market price is illegal.” The display rule covers prices that are shown. It is a reason to ask.