Understanding the Cost of Living in Japan
Japan boasts a strong economy, a high quality of life, and one of the most stable currencies in the world—the Japanese yen. While it remains a popular destination for expats, the cost of living is relatively high compared to many other countries. The Mercer Cost of Living Index ranks Tokyo as the ninth most expensive city globally, just behind Singapore and New York City.
Before booking your one-way ticket to Nagoya or Yokohama, here’s what you need to know about Japan’s cost of living and how expenses vary by city.
Cost of Living in Japan: Key Considerations
Japan has a population of nearly 124 million people, with around 2.3% being foreign-born residents. Many Canadians move to Japan for work, education, or travel, whether it’s to teach English, study Japanese, or experience the country’s rich culture.
Your cost of living in Japan depends on multiple factors, including your location, lifestyle, and residency status. According to NomadList, the average monthly cost of living in Tokyo is:
- $6,650 CAD for a digital nomad
- $5,250 CAD for an expat
- $2,950 CAD for a local resident
Short-term visitors and tourists will likely spend more on accommodation and travel, while official residents with a Japan work visa gain access to national healthcare and other benefits.
Although salaries in Japan are relatively high, they may be lower than in Canada. For example:
- A software engineer in Tokyo earns around $61,200 CAD per year.
- A teacher earns approximately $47,400 CAD per year.
If you’re earning Canadian dollars, it’s important to check the exchange rate before relocating. This article provides estimated costs in CAD for easy comparison.
Cost of Living in Japan by City
Japan is densely populated, and its most iconic cities—like Tokyo and Kyoto—are also the most expensive. If you’re looking to save money, consider living in a smaller city or rural area. Below is a breakdown of the monthly cost of living in four major cities.
Tokyo
With a population of 14 million, Tokyo is a fast-paced metropolis known for its efficient public transit, food scene, and high housing costs.
Estimated Monthly Costs in Tokyo
- Housing: $1,480 CAD for a small apartment
- Food: $12.40 CAD for lunch, $5.30 CAD for a cappuccino
- Transport: $108 CAD for a public transit pass
- Health: $120 CAD for a gym membership
Osaka
Osaka, Japan’s third-largest city, has a milder climate and cheaper real estate than Tokyo, making it an attractive alternative.
Estimated Monthly Costs in Osaka
- Housing: $805 CAD for a small apartment
- Food: $10.10 CAD for lunch, $4.40 CAD for a cappuccino
- Transport: $113 CAD for a public transit pass
- Health: $98 CAD for a gym membership
Kyoto
Famous for its temples and cherry blossoms, Kyoto has a similar cost of living to Osaka but a slightly smaller population of 2.6 million.
Estimated Monthly Costs in Kyoto
- Housing: $885 CAD for a small apartment
- Food: $10 CAD for lunch, $4.80 CAD for a cappuccino
- Transport: $134 CAD for a public transit pass
- Health: $111 CAD for a gym membership
Fukuoka
Located on the island of Kyūshū, Fukuoka is known for its ramen culture and fresh local produce.
Estimated Monthly Costs in Fukuoka
- Housing: $780 CAD for a small apartment
- Food: $9.20 CAD for lunch, $5.30 CAD for a cappuccino
- Transport: $110 CAD for a public transit pass
- Health: $92 CAD for a gym membership
How to Save on Living Expenses in Japan
Even in Japan’s most expensive cities, there are ways to reduce costs, such as sharing accommodation or preparing meals at home. Here are key factors to consider:
Housing
- Tokyo is nearly twice as expensive as Kyoto or Osaka, but there are budget-friendly options.
- Renting in Tokyo’s suburbs is more affordable than a downtown Osaka studio.
- You may need a guarantor, deposit, and agency fees when signing a lease.
Food & Drink
- Japan has an incredible food culture, with over 35,000 restaurants in Osaka alone.
- Eating out daily adds up—buying bento boxes (pre-packaged meals) is a cost-effective alternative.
- Average drink prices in Tokyo:
- Coffee: $3.10 CAD
- Soft drink: $4 CAD
- Beer: $6.10 CAD
Public Transport
- Japan’s rail network is world-class, making it easy to live without a car.
- Commuter passes offer savings for residents.
- Tourists can buy a Japan Rail Pass, but must reserve certain seats in advance.
- A Tokyo to Nagoya train ticket costs around $80-$115 CAD.
Healthcare
- Japanese residents qualify for National Health Insurance (NHI), but non-residents must arrange private coverage.
- Employer-based Social Insurance (SI) is available for some workers.
- Patients pay 30% of medical costs, with a cap on out-of-pocket expenses.
Final Thoughts on Living in Japan as a Canadian
Living in Japan can be an exciting and rewarding experience, but it’s important to budget wisely—especially in major cities like Tokyo and Osaka. While rent is high, public transport and healthcare costs are generally more affordable than in Canada. By making strategic lifestyle choices, you can live comfortably while exploring everything Japan has to offer.