Japan’s government is planning to cut the consumption tax on groceries (excluding dining out and alcohol) from 8% to 1% for two years, starting April 2027. Enter your household’s monthly grocery and non-alcoholic drink spending (tax included, in yen) below to estimate how much you’d save each month, and over the full two-year period, once the lower rate takes effect.
Japan Food Tax Cut Savings Calculator
Based on the proposed April 2027 policy (cabinet-decision stage, not yet law) · Tax rate 8% to 1%
How to use this calculator
- Check a recent receipt or household budget for your average monthly spending on groceries and non-alcoholic drinks (tax included, purchased at supermarkets or convenience stores).
- Click "Calculate savings" to see your estimated monthly savings once the rate drops from 8% to 1%, plus the total over the two-year policy period.
- Leave out dining-out and alcohol spending, since neither is covered by this policy — excluding them gives a more accurate estimate.
How this calculator works
This calculator is based on the food consumption tax cut PM Sanae Takaichi announced on July 30, 2026 (from 8% today to 1% for two years starting April 2027). It works backward from your tax-included spending to estimate the pre-tax price, then applies the new 1% rate to calculate the difference. This is a simple estimate that assumes pre-tax prices stay the same — in practice, your actual savings will depend on broader price movements and individual retailers' pricing decisions.
As of August 5, 2026, this policy is at the cabinet-decision stage. It still needs to go through the September tax reform outline and a fall Diet session before becoming law, so the effective date and exact scope could still change. Treat this calculator as a rough planning estimate, not a guarantee.
Key takeaways
- Consumption tax on groceries: 8% → 1%, for April 2027 – March 2029 only (dining out and alcohol excluded)
- Savings estimates assume pre-tax prices remain unchanged
- As of August 2026, this is at the cabinet-decision stage — not yet enacted law
- Applies automatically regardless of nationality or visa status — no application needed
For the full background on this policy, what's still unconfirmed, and what it means specifically for foreign residents in Japan, see our guide: Japan Food Tax Cut to 1%: What to Know.
This calculator is provided for general informational purposes only and is not a substitute for professional tax advice. The policy discussed here reflects the cabinet-decision stage as of August 5, 2026; details may change during the tax reform outline and Diet deliberation process. Confirm the final implementation date and covered items through official government announcements.