Tokyo is infamous for its high cost of living, which is often a major concern for expats moving to the city. In 2023, Tokyo ranked 19th out of 227 expat cities evaluated in Mercer's Cost of Living Survey. It's much pricier than cities such as Osaka (ranked 93rd) when it comes to major expenses like accommodation. But with the lucrative salaries offered in Tokyo, it is still possible for expats to build a comfortable life here.
Cost of accommodation in Tokyo
The most significant expense an expat will have in Tokyo is accommodation. Apartments are the most popular form of housing for expats. Monthly rental fees can be sky-high for an apartment that is typically much smaller than expats are used to.
Expats should also remember that other fees are involved when moving into a new place. Extra costs that need to be budgeted for are deposits, key money, the first month's rent in advance and agency fees. Additionally, expats will also need to pay for their monthly utilities, as these are not usually included in the monthly rental price.
Cost of transport in Tokyo
Due to the high cost of parking in Tokyo, most expats choose to use public transport instead of owning a car. In comparison to other Asian capitals such as Seoul, public transport is expensive in Tokyo, but it's also highly efficient.
Cost of groceries in Tokyo
When it comes to food, standards are exceptional. The price of fresh produce in Tokyo is higher than some expats may be used to, but the quality is top-notch, and seafood is relatively cheap. Many supermarkets offer evening discounts to get rid of the day's stock.
Cost of entertainment and eating out in Tokyo
As an international metropolis, Tokyo offers a vast array of entertainment options, varying wildly based on preferences and lifestyle choices. From sumptuous fine-dining experiences to affordable local eateries, Tokyo's food scene is diverse and caters for all budgets. For those on a budget, bentos from convenience stores or meals from department store food courts are affordable and delicious alternatives to pricier restaurants.
The city also has various attractions, kid-friendly activities and annual events and festivals. While some of these activities may come with an entrance fee, plenty of low-cost or free activities are available for those looking to enjoy the city on a budget. From strolling in one of Tokyo's beautiful parks to exploring the vibrant local neighbourhoods, there is always something to do in this bustling city.
Cost of education in Tokyo
Education in Tokyo, while of high quality, can be a substantial expense for expat families. The majority of these families opt to enrol their children in schools that offer a foreign curriculum. The international schools in Tokyo teach curricula such as the International Baccalaureate and are renowned for their exceptional educational standards, but tuition fees can vary significantly from one institution to another.
Besides tuition, parents should be prepared to budget for additional costs such as registration fees, uniforms, books and excursions. Scholarships and financial aid might be available in some schools, but they are not guaranteed.
Cost of healthcare in Tokyo
The standard of healthcare in Tokyo is excellent, with state-of-the-art medical technology and a comprehensive range of services available. The city is equipped with a broad network of hospitals and clinics, many of which offer services in English and other foreign languages, catering to the diverse expat population in the city. However, the cost of healthcare can be relatively high compared to other cities around the world.
All residents, including expats, are required by law to be covered by health insurance in Japan. This can be through the national health insurance scheme or a private insurance plan. National health insurance typically covers 70 percent of healthcare costs, with the patient paying the remaining 30 percent out-of-pocket.
Cost of living in Tokyo chart
Note that prices may vary depending on the product and service provider. The list below shows the average prices for Tokyo in June 2023.
Accommodation (monthly rent) |
|
Three-bedroom apartment in the city centre |
JPY 320,000 |
Three-bedroom apartment outside the city centre |
JPY 165,000 |
One-bedroom apartment in the city centre |
JPY 142,000 |
One-bedroom apartment outside the city centre |
JPY 84,000 |
Food and drink |
|
Dozen eggs |
JPY 290 |
Milk (1 litre) |
JPY 198 |
Rice (1kg) |
JPY 370 |
Loaf of white bread |
JPY 191 |
Chicken breasts (1kg) |
JPY 550 |
Pack of cigarettes (Marlboro) |
JPY 600 |
Eating out |
|
Three-course meal for two at a mid-range restaurant |
JPY 6,000 |
Big Mac meal |
JPY 710 |
Coca-Cola (330ml) |
JPY 160 |
Cappuccino |
JPY 450 |
Bottle of beer (local) |
JPY 290 |
Utilities/household |
|
Mobile call rate (per minute – mobile to mobile) |
JPY 52 |
Internet (uncapped ADSL or cable – average per month) |
JPY 4,600 |
Basic utilities (average per month for a standard household) |
JPY 25,000 |
Transportation |
|
Taxi rate/km |
JPY 420 |
City-centre public transport fare |
JPY 150 |
Gasoline (per litre) |
JPY 166 |
Further reading
►Frequently Asked Questions about Tokyo provides valuable information about the city
Expat Experiences
"It’s not necessarily the case that items are more expensive than in the UK. There are few remaining import duties and most items these days are available either in stores or online. The real cost comes in that different stores sell the same items at different prices. Without a base reference, you actually don’t know what is expensive and what is good value. It takes time to learn this, but after a while your cost of living comes down." Read our interview with British expat Jonathan to learn more about living in Tokyo.
Are you an expat living in Tokyo?
Expat Arrivals is looking for locals to contribute to this guide, and answer forum questions from others planning their move to Tokyo. Please contact us if you'd like to contribute.
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