Japan is one of the top choices for prospective immigrants in 2025. Newcomers are attracted by the country’s historically stable economy, excellent public transportation, safe cities, welcoming culture (omotenashi), and high-quality healthcare and education.
At Remitly, we care about our customers worldwide and help them make informed decisions before moving to a new country. In this guide, we’ll take a look at Japan’s living expenses in 2025 to help you plan your finances with confidence.
Key expenses in Japan
In 2024, Japan ranked 11th in the world for quality of life. However, this high quality comes with a reputation for being expensive. While the cost of living in Japan in 2025 may feel pricey—particularly in major cities—everyday costs are generally more affordable than in the US.
Whether you’re planning to relocate to Japan for work, study, retirement, or long-term travel, these are the key expenses that will affect your monthly budget.
Japan living expenses breakdown
The table below gives you a quick breakdown of the monthly cost of living in Japan for one person, according to the Japanese government’s official website for studying in Japan. At the time of writing, $1 USD = 143 Japanese yen (JPY or ¥). Figures in tables are shown in US dollars.
| Expense | Average prices (USD) |
| Housing | $418 |
| Food and groceries | $224 |
| Transportation (for students) | $28 |
| Education (yearly) | $5400 (undergraduate); $6000 (graduate) |
| Healthcare (medical and insurance) | $21 |
| Utilities (water, electricity, and gas) | $91 ($49 for electricity, $25 for gas, and $17 for water) |
Japan cost comparison: urban hubs vs. smaller cities
Living expenses can vary greatly across Japan depending on the region. Below is a snapshot of living expenses in major cities like Osaka and Tokyo, as well as in smaller towns. The national average is $736 USD per month (¥105,000 JPY at the time of writing).
| City/town | Average monthly expenses (USD) |
| Tokyo | $911 |
| Osaka | $900 |
| Hokkaido | $659 |
| Kanto | $862 |
| Kyushu | $575 |
| Tohoku | $575 |
| Chubu | $624 |
| Chugoku | $589 |
| Kinki | $708 |
| Shikoku | $560 |
Housing costs in Japan
As of May 2025, 123.34 million people were living in Japan. Although this seems like a lot of people, the Japanese population has been shrinking for the past 15 years due to low birth rates.
The expat community, on the other hand, has been increasing. There were 3.8 million immigrants living in Japan by the end of 2024, and experts predict that these numbers will keep growing.
Despite the large local population and an increasing expat community, the country is experiencing a “reverse housing crisis.” There’s an oversupply of real estate. Official government 2023 data reported that Japan has nine million empty houses (akiyas), and foreigners are rushing to buy property in Japan.
This situation has affected housing prices, with some homes selling for less than $10,000 (¥1,440,000), attracting foreigners who want to retire, live, and work in Japan.
Rent prices: major cities vs. rural areas
Rent prices are relatively affordable in Japan, especially outside the biggest cities. According to Numbeo, the average price of a non-central 1-bedroom apartment averages around $416 (¥60,000) per month.
Let’s take a quick look at rental rates across different areas of Japan:
| Area | Average rent (USD) |
|---|---|
| Tokyo | $544.61 |
| Osaka | $434.04 |
| Nagoya | $686 |
| Sapporo | $350 |
| Saitama | $431.48 |
| Hyogo | $428.74 |
| Aomori | $330.64 |
| Fukuoka | $418.76 |
| Aichi | $398.22 |
| Kyoto | $405.64 |
| Hokkaido | $345.02 |
| Hiroshima | $386.19 |
| Nara | $374.81 |
| Okinawa | $382.21 |
Additional housing costs to consider
Housing costs involve more than just your monthly rent or mortgage payments—there are additional costs to consider, like maintenance fees and utilities. Monthly utilities cost an average of $91 (¥13,100) per person.
Average food prices in Japan
Food prices in Japan are relatively high. However, you’ll save money if you stick to Japanese cuisine and seasonal fruits and vegetables.
The cost of eating out depends on how often you do so and the quality of restaurants you visit. Inexpensive meals cost about $10 (¥1440), a three-course dinner for two at a mid-range restaurant could be around $77 (¥11,000), while a McDonald’s combo costs $6 (¥863). A bowl of ramen costs around $5 (¥720).
If you prefer cooking at home, expect to spend around $266 (¥38,300) per person, monthly. Here’s a look at the average prices for everyday grocery staples in Japan:
| Grocery item | Average price (USD) |
|---|---|
| Bread (1 kg) | $3.5 |
| Tomatoes (1 kg) | $5 |
| Onions (1 kg) | $2.8 |
| Milk (1 litre) | $1.7 |
| Tofu (per 300 grams) | $0.5 |
| Canned tuna | $1.1 |
| Beef (per 100 grams) | $4-8 (varies by region) |
| Eggs (10) | $1.8 |
| Rice (5 kg) | $18.5 |
| Apples (1kg) | $7 |
Transportation in Japan
Megacities like Nagoya, Tokyo, and Osaka have led to Japan’s advanced and efficient transportation network, connecting urban centers, metropolitan areas, and rural locations.
Railways are the main form of passenger transport. The Shibuya station in Tokyo is among the busiest train stations in the world. High-speed bullet trains, locally known as Shinkansen trains, connect the southern parts of Kyushu to the northern island of Hokkaido.
Commuters in rural areas rely on the extensive bus network. You can also fly, ride the subway, or use night buses for long-distance travel.
The average cost of transportation is:
- Shinkansen (bullet trains): Between $80 (¥11,500) and $285 (¥41,000) for a Gran Class ticket.
- City bus: $1.5 (¥210) for adults and $0.77 (¥110) for kids.
- Subway: $2.30 (¥330) for Tokyo Metro, and $3 (¥430) for Toei.
- Plane: starting at $54 (¥7700) for domestic flights.
- Night bus: between $21 (¥3000) and $42 (¥6000) from Tokyo to Osaka.
Please note that accurate costs depend on how far you travel.
Car ownership for foreigners in Japan
Immigrants can buy or lease a car in Japan, although you’ll need proper driving credentials to use your vehicle legally. Foreigners can drive in Japan using an International Driving Permit (IDP) for up to 12 months, but after that, they are required to apply for a Japanese driver’s license. US citizens residing in Japan can convert their US license to a Japanese license.
If you’re looking to purchase a personal vehicle, you’ll find that a standard new car costs between $10,500 (¥1,500,000) and $28,000 (¥4,030,000) in Japan. A second-hand car is a better option if you’re tight on cash but want to own a vehicle. Used cars typically cost between $3,500 (¥500,000) and $14,000 (¥2,000,000).
Leasing is the cheapest option if you aren’t staying for long or prefer to own a car only for a short time. Prepare to pay between $230 (¥33,000) and $350 (¥50,000) monthly for compact cars. There’s also a security deposit of $175 (¥25,000).
To lease a car, you’ll typically need to provide several documents, including a valid passport, a residence card (zairyū card), and proof of a valid driver’s license—either a Japanese license or a foreign license accompanied by an International Driving Permit, depending on your country of origin. Most leasing companies will also ask for a credit card or a bank book from a Japanese financial institution for payment verification.
Healthcare in Japan
Japan’s healthcare is available for citizens, permanent residents, and expatriates staying longer than three months. While healthcare is not free, Japan provides subsidized care for all eligible individuals.
To take advantage of Japan’s public healthcare, enroll in the National Health Insurance (NHI) system (kokumin kenkô hoken), which covers services such as consultations, hospitalizations, surgeries, medications, and preventive care.
You can only receive routine treatment in hospitals that accept NHI, but emergency care is available at any Japanese hospital. Ambulance rides are free.
Another common health insurance option is Employee Health Insurance (EHI) (kousei nenkin hoken), where your employer pays half of your insurance premium.
Both NHI and EHI generally cover 70% of your medical bills. Private insurance coverage is also quite common, an option that costs around $370 (¥40,000) per month.
Education in Japan: from preschool to graduate school
Japan offers well-rounded education, from preschool to graduate level, at both international and public institutions.
Foreign students have the same rights as local learners, and foreign children may attend elementary or junior high schools free of charge.
To enroll the student and be assigned a specific school in your municipality, you’ll need to register your address with your local municipal office and provide transcripts from your previous school, along with a valid residence card.
Remember to confirm with the Japan Council of International Schools to ensure the school you wish to enroll in is accredited.
General educational fees:
- Childcare: You may pay up to $1000 USD (¥144,000) at private childcare centers.
- Pre-school: $4,000 (¥575,700).
- Primary school: Between $17,000 (¥2,447,000) and $73,000 (¥10,506,000) for six years of primary school.
- Middle school: Between $12,500 (¥1,799,000) to $34,000 (¥4,893,000) for three years.
- Secondary school: Public high school education is free for everyone. Private institutions charge up to $30,000 (¥4,317,600) for three years of high school.
- Undergraduate: $5,400 (¥777,000).
- Postgraduate: $6,000 (¥865,000).
These costs don’t include extra items like uniforms, extracurricular activities, school materials, transportation, and other needs.
Average wages and miscellaneous expenses
The average salary in Japan is $30,356 (¥4,368,820) annually, and the average household disposable income is $28,872 (¥4,155,243). This is less than the OECD average of $30,490 (¥4,388,105) annually.
Japan’s minimum wage is now around $7.39 (¥1,054) an hour. Although this is an increase from previous rates, it’s still lower than international standards, meaning that minimum wage may not be enough to afford a comfortable lifestyle, particularly in urban areas.
That said, analyzing your extra expenses—such as entertainment, dining out, leisure activities, internet, mobile phones, and holiday festivities—will help you budget well and ensure you stay financially secure.
Japan budgeting tips for 2025
Smart budgeting can go a long way toward helping you enjoy life in Japan, build savings, invest in your future, or send money home to family members through the Remitly app.
Here are some practical budget hacks to keep your living costs in check in Japan:
- Strategically choose where you live and how you get around: Live in a smaller town, use public transport or a bicycle, and consider shared housing, especially if you’re a student.
- Shop and eat smart: Cook at home instead of eating out often, buy produce that is in season, shop at drugstores or 100-yen shops instead of convenience stores, and opt for cheap furniture from IKEA.
- Cut down on recurring costs: Use low-cost mobile companies, use energy-efficient appliances, and be mindful of electricity and water consumption to keep utility bills low.
Tracking expenses the kakeibo way
The traditional Japanese budgeting method known as kakeibo (“household financial ledger”) encourages intentional spending by writing down your income and expenses and reflecting on financial habits.
If you’d prefer a digital approach over an old-school pen and notebook—or want to combine both—several apps can help you stay on top of your finances in Japan:
- Budgeting apps inspired by kakeibo principles: Mainichi Kakeibo, Rakuna Kakeibo, and OsidOri offer simple ways to log daily expenses and savings goals.
- Modern expense trackers popular in Japan: Money Forward ME, Zaim, Dr. Wallet, Money Tree, and Coinkeeper sync with bank accounts and credit cards to automate budgeting and generate insights.
Setting yourself up for success
While Japan has a reputation for being expensive, the quality of life the country offers makes the costs feel worthwhile. With affordable housing costs. advanced and efficient transportation, fantastic healthcare, and well-rounded education, living in Japan can be both enriching and manageable. With smart budgeting and a clear financial plan, you’ll be thriving in no time. We wish you well in your new life in the Land of the Rising Sun!
FAQs
Can foreigners buy homes or land in Japan?
Yes, foreigners can legally purchase property in Japan, including land and akiya (abandoned homes). There are no nationality restrictions, but it’s wise to consult a local agent for help with paperwork and renovation requirements.
Is living in rural Japan significantly cheaper?
Generally, yes. Rent, groceries, and utilities tend to be lower outside of major cities like Tokyo or Osaka. However, access to English-speaking services and public transport may be more limited.
Do I need health insurance if I’m staying short-term?
If you’re in Japan for less than three months, you’re not eligible for National Health Insurance (NHI). Private travel insurance is recommended during short stays to cover emergency costs.
What’s a reasonable monthly budget for a single person in Japan?
Outside of Tokyo, a single person can live comfortably on about $1,200-$1,800 USD (¥172,700-¥259,000 JPY) per month, depending on housing, lifestyle, and location.
What’s the best way to send money internationally from Japan?
Many expats use digital remittance services like Remitly for fast and cost-effective transfers to their home countries. These apps often offer better exchange rates and lower fees than traditional banks.