Japan has a reputation for being expensive. The reality is more nuanced — Tokyo is pricey, but outside the capital you can live very comfortably on a modest salary. Here’s a realistic, updated breakdown for 2025.
Monthly Budget Overview by City
| Expense | Tokyo | Osaka | Fukuoka | Sapporo |
|---|---|---|---|---|
| Rent (1LDK) | ¥100,000–170,000 | ¥65,000–110,000 | ¥55,000–90,000 | ¥50,000–80,000 |
| Food | ¥40,000–70,000 | ¥35,000–60,000 | ¥30,000–55,000 | ¥30,000–55,000 |
| Transport | ¥10,000–20,000 | ¥8,000–15,000 | ¥6,000–12,000 | ¥8,000–15,000 |
| Utilities | ¥10,000–20,000 | ¥10,000–18,000 | ¥9,000–16,000 | ¥12,000–22,000 |
| Phone/Internet | ¥5,000–10,000 | ¥5,000–10,000 | ¥5,000–10,000 | ¥5,000–10,000 |
| Total | ¥165,000–290,000 | ¥123,000–213,000 | ¥105,000–183,000 | ¥105,000–182,000 |
Rent: The Biggest Variable
Rent is your largest expense and varies enormously by city, neighborhood, and apartment type.
Tokyo averages:
- Studio (1K/1DK): ¥60,000–95,000 in central wards, ¥45,000–70,000 in outer wards
- 1LDK (1 bed): ¥100,000–170,000 central, ¥75,000–110,000 outer
- Foreigner-friendly areas: Shinjuku, Minato, Shibuya — but cheaper in Adachi, Edogawa, Katsushika
Osaka averages:
- Studio: ¥40,000–65,000
- 1LDK: ¥65,000–110,000
- Best value neighborhoods: Namba area, Tsuruhashi, Higashinari
Fukuoka averages:
- Studio: ¥35,000–55,000
- 1LDK: ¥55,000–90,000
- Cheapest major Japanese city for expats
See our housing costs guide for a full neighborhood breakdown.
Food Costs
Japan’s food costs depend entirely on how you eat.
Eating out (budget):
- Convenience store meal: ¥500–800
- Ramen/udon/soba: ¥700–1,200
- Set lunch (teishoku): ¥800–1,200
- Izakaya dinner: ¥2,000–4,000 per person
Groceries (monthly estimate):
- Cooking most meals at home: ¥25,000–40,000
- Mix of cooking and eating out: ¥40,000–65,000
- Mostly eating out: ¥60,000–90,000
Tips for reducing food costs: shop at discount supermarkets (OK Store, Gyomu Super, Seiyu), buy discounted (割引) items after 7pm, and use cheap grocery shopping strategies.
Transport
Tokyo: A Suica-based commute runs ¥10,000–20,000/month. Many employers cover this.
Osaka/Fukuoka/Others: ¥6,000–15,000/month depending on commute distance.
If your employer covers commuting costs (通勤手当), your transport costs drop to near zero for daily work travel. This is standard at most Japanese companies.
See Suica and IC card guide for how to manage transit costs.
Utilities
Electricity + Gas + Water: ¥12,000–22,000/month, higher in winter (heating) and summer (AC).
Internet: ¥4,000–6,000/month for fibre broadband. See our home internet guide.
Phone: ¥990–3,278/month on a budget SIM. See best SIM cards for foreigners.
Tax and Social Insurance
Don’t forget the deductions from your gross salary:
| Deduction | Approximate Rate |
|---|---|
| Income tax | 5–45% (progressive) |
| Resident tax | ~10% |
| Health insurance | ~5% |
| Pension | ~9.15% |
| Employment insurance | ~0.6% |
Total deductions typically run 25–35% of gross salary. A ¥4,000,000 annual salary nets roughly ¥280,000–300,000/month.
See our tax guide for foreigners for details.
Sending Money Home
If you’re sending a portion of your salary to family or savings abroad, use Wise — it offers the real exchange rate with minimal fees, saving thousands of yen per transfer versus bank wire transfers.
Is Japan Expensive?
Compared to London, New York, or Sydney: no. A professional can live well in Tokyo on ¥300,000/month. Outside Tokyo, ¥200,000/month is comfortable.
The trap foreigners fall into: eating out every day, expensive Western imports, and paying too much for a foreigner-friendly apartment. Cook at home, shop smart, and live like a local — Japan becomes very affordable.