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The demonstration comes one day after COVID-19 cases in Japan's capital hit a record high.
Demonstrators shouted slogans and carried banners, many of them reading "cancel the Olympics".
"I think the money used for the Olympics should have been diverted to medical workers who are struggling, or students like us to help with the high tuition fees...to really make people happy, instead of being spent on the Olympics," said a college student, Shoei Watanabe.
Tokyo Olympics organizers on Sunday reported 18 new Games-related COVID-19 cases including one athlete, bringing the total Games-linked number since July 1 to 259.