Starting in October 2025, important changes will take effect in Japan’s Hometown Tax (ふるさと納税, Furusato Nozei) program. Until now, many donation portal sites—used to make Hometown Tax contributions—offered additional reward points based on the amount you donated. These bonus points will no longer be allowed under the new rules.
In practical terms, this means that if you make a Hometown Tax donation through a portal site by September 2025, you may still receive extra points. From October 2025 onward, however, those additional rewards will be prohibited. For foreign residents in Japan who are considering using the Hometown Tax program, it is important to understand this change and plan your donations accordingly. If you are not familiar with Furusato Nozei (Hometown Tax) or how it works, please refer to the article below for a detailed introduction.
This article is written by Certified Financial Planner Lili Katoh, who provides a clear explanation of what will change in October, along with practical tips to help you make informed decisions. By understanding the revised rules, you can continue to enjoy the full benefits of Japan’s Hometown Tax system.
Who This Article Is For
This guide is intended for anyone in Japan who:
Wants to understand the Hometown Tax (Furusato Nozei) system and its benefits.
Is considering making donations through portal sites and wants to know how points, tax deductions, and gifts work.
Needs clear guidance on the changes effective October 2025 regarding portal site point rewards.
Seeks advice from a certified financial planner on maximizing Hometown Tax benefits safely and efficiently.
Table of Contents
About the Supervisor & Writer
Lili Katoh
Certified Financial Planner®
Founder of Money Step Office Inc.
Lili Katoh specializes in insurance, life planning, and asset management. She is a Health Management Expert Advisor and author of “Setai Nenshū 1000 Man En” and “Gattsuri Tamaru Chokin Recipe”. Born in California, USA, she brings international insight to Japanese financial planning.
Chapter 1: Hometown Tax Reward Points to End at the End of September 2025
Hometown Tax, or Furusato Nozei (ふるさと納税), is a system that allows taxpayers in Japan to make “donations” to prefectures, cities, towns, and villages (collectively referred to as local governments). Many local governments accept Hometown Tax donations not only through their official websites but also via nationwide portal sites that gather and display donation options across Japan. (We will explain this in more detail in Chapter 3.)
When you use a portal site, you can complete the entire donation process online—from applying to the local government to making your payment. Until now, some portal sites also offered their own reward points based on the donation amount. However, starting in October 2025, these additional reward points will be prohibited by law. In other words, any points offered independently by portal sites will no longer be available after the end of September.
Why is this change being made? One major reason is that in recent years, competition among certain portal sites has intensified, with some focusing heavily on offering high point returns to attract donations. According to the Ministry of Internal Affairs and Communications, the true purpose of the Hometown Tax program is for individuals to support regions they feel connected to—such as their hometown or a place that has supported them in the past—through voluntary donations.
However, the strong emphasis on point rewards shifted attention away from supporting local communities. Instead, many donors began choosing where to donate based primarily on which site offered the highest return. In some cases, portal sites launched special “point-back campaigns,” where limited-time promotions provided unusually high point rewards or even lottery-style giveaways of large bonus points. Just before the new restrictions take effect in September 2025, some sites were advertising campaigns that promised point returns of 100%, 400%, or even 777% of the donation amount.
Because these practices were seen as straying from the original purpose of the Hometown Tax system, new regulations were introduced to prohibit such excessive incentives.
References
Ministry of Internal Affairs and Communications (Japan). (2025). Notice on revisions to Hometown Tax reward points [PDF]. Retrieved from Ministry of Internal Affairs and Communications website
Chapter 2: What Is a Hometown Tax Portal Site?
There are several ways to make a Hometown Tax (Furusato Nozei) donation in Japan. You can donate directly through a local government’s official website, or you can use nationwide portal sites that collect and display information on Hometown Tax donations. These portal sites allow you to complete both the donation application and payment process online.
Examples of such portal sites include: In alphabetical order
ANA Hometown Tax
Amazon Hometown Tax
JAL Hometown Tax
JRE MALL Hometown Tax
SatoFuru
Furusato Choice
Furunavi
Yahoo! Hometown Tax
Rakuten Hometown Tax
These sites are operated not only by companies specializing in Hometown Tax services but also by businesses whose main operations are in airlines, railways, or e-commerce.
Using a portal site has several advantages. You can browse information about municipalities across Japan in one place, select your preferred donation destination, and complete the donation process—including payment—directly through the site. Many portals accept credit cards, mobile carrier payments, or smartphone payment apps, making the process faster and more convenient than visiting each municipality’s official website individually.
Until the end of September 2025, some portal sites also offer additional incentives such as points or miles based on the donation amount—for example, “7% of the donation,” “1 point per 100 yen,” or “1 mile per 100 yen.” (Some sites never offered points, so availability varies.) These points or miles can usually be applied to future Hometown Tax donations or used for other services provided by the portal operator, such as e-commerce purchases.
Chapter 3: Changes Starting in October 2025
Starting October 1, 2025, the rules regarding points earned through Hometown Tax donations via portal sites will change. Under the revised law, additional points or miles granted by Hometown Tax portal sites will, in principle, be prohibited.
From October onward, even if you make a Hometown Tax donation through a portal site, you will no longer receive extra points offered by the site. Consequently, any point-boost campaigns previously offered by some portal sites—such as limited-time bonus points or lottery-style point giveaways—will also be effectively banned.
Because the new law takes effect on October 1, 2025, donations made through portal sites by September 30, 2025, may still be eligible for portal site-specific points. Details vary by site, but in many cases, points will only be granted for donations completed by 11:59 PM on September 30, 2025.
Chapter 4: What Remains the Same After October 2025
Hearing that “reward points will no longer be available” might make it feel like you are losing out. However, there are still benefits of using Hometown Tax that will remain unchanged after October 2025.
1. You Can Still Earn Regular Credit Card Points
There are several ways to pay for Hometown Tax donations, depending on the municipality or portal site you use. Options include bank transfers, credit cards, mobile carrier payments, and smartphone payment apps. When you donate via credit card or cashless payment, you continue to earn points based on your payment—such as “1 point per 200 yen spent”—just like any other purchase.
The new regulations only prohibit additional points granted specifically by portal sites. Regular points or miles provided by your credit card or cashless payment service are not affected. After October, you can still receive these standard points or miles based on your payment amount. (Note: Point programs for cashless payments may vary depending on the provider, so please check with each service.)
2. Tax Deductions for Hometown Tax Remain Unchanged
The core mechanism of Hometown Tax remains the same after October. Donations over 2,000 yen are still eligible for deductions from both income tax and resident tax. The calculation method and the scope of deductions remain unchanged, so you can continue to enjoy the tax-saving benefits.
3. You Can Still Receive Gifts from Municipalities
Hometown Tax is designed to support regional revitalization across Japan. Many municipalities offer thank-you gifts—such as local specialty products or vouchers redeemable in the region—for donors.
The recent legal changes do not prohibit these gifts, so you can continue to receive thank-you items from the municipalities you support.
However, a review of thank-you gift standards is planned for October 2026. Currently, some gifts may not strongly reflect the local region. Going forward, municipalities will be required to ensure that when a gift is produced or processed outside the municipality (or abroad), at least half of its value must be generated within the donating municipality. This will tighten standards and ensure that gifts more accurately represent the local region.
References
Ministry of Internal Affairs and Communications (Japan). (2025). Regarding the legal revisions on Hometown Tax (Furusato Nozei) [PDF]. Retrieved from Ministry of Internal Affairs and Communications website
| Category | Until September 30, 2025 | From October 1, 2025 |
|---|---|---|
|
Points awarded when using portal sites |
Some portal sites offer their own points or miles (e.g., a percentage of the donation amount, or higher points during campaigns) |
Prohibited by law; additional points or miles from portal sites are no longer allowed |
|
Regular credit card or cashless payment points |
Points awarded based on payment amount (e.g., 1 point per 200 yen spent) |
No change*; standard points or miles from credit cards or cashless payments are not affected by the new regulation |
|
Tax deductions (income tax & resident tax) |
Donations over 2,000 yen are eligible for deductions |
No change; the same rules for income and resident tax deductions apply |
|
Thank-you gifts from municipalities |
Donors can receive local specialty products, vouchers, or other gifts from the municipality |
No change; gifts remain available, although standards for gifts will be tightened starting October 2026 |
*Note: Point programs for cashless payments may vary depending on the provider. Please confirm with each service.
Chapter5: Common Mistakes and Points to Note
When using Hometown Tax (Furusato Nozei), its mechanisms, benefits, and the upcoming changes, there are several points that are easy to misunderstand. Pay attention to the following:
Some Portal Sites Have Already Stopped Offering Points
Until the end of September, additional points from portal sites are not legally prohibited. However, the way points are awarded depends on each portal site’s own rules. Some sites may still run limited-time point campaigns just before the new regulations take effect, while others may have already ended their programs.
Even for sites that continue campaigns until the end of September, the eligibility period or cutoff times vary by site. If you want to receive additional points, make sure to check exactly when you must complete your donation and payment.
Losing Additional Points Does Not Mean Losing Benefits
The new law only restricts additional points granted specifically by portal sites for Hometown Tax donations. Points you earn through credit card or cashless payments—just like regular shopping rewards—will generally still be granted.
Similarly, tax deductions for income tax and resident tax, as well as thank-you gifts from municipalities, are not affected. Even if you cannot receive extra points after October, you are not losing out on the main benefits of Hometown Tax.
Hometown Tax Is Not a “Tax”
Although the term “Furusato Nozei” contains the word “tax,” it is technically not a tax obligation. It is a voluntary donation made by individuals. In return for donating, you can receive deductions on your income tax and resident tax, which effectively reduces your tax burden.
Chapter6: Advice from a Certified Financial Planner
Until the end of September 2025, using a portal site for Hometown Tax (Furusato Nozei) donations may allow you to earn site-specific points. Generally, portal sites do not restrict users based on nationality, so even foreign residents in Japan can enjoy the combined benefits of tax deductions and thank-you gifts.
Starting in October 2025, additional points from portal sites will be prohibited. Therefore, for those who prioritize reward points, making donations by the end of September may be advantageous. However, even without these points, the main benefits of Hometown Tax—tax deductions and municipal thank-you gifts—remain unchanged.
Chapter7: FAQ: Hometown Tax for Foreign Residents
As a Certified Financial Planner, I often receives the following questions from clients regarding Hometown Tax:
Q. Are there any benefits to making Hometown Tax donations after October 2025?
A. Yes. Even after October, you can still enjoy benefits such as tax deductions and thank-you gifts. Additionally, if you make your donation via credit card, you will continue to earn the standard points awarded by your credit card company based on the payment amount.
Q. Will Hometown Tax no longer provide tax reductions after October?
A. Tax deductions remain unchanged. Donations are still eligible for income tax and resident tax reductions as before.
Q. Should I rush to make Hometown Tax donations before the end of September?
A. If you want to receive additional reward points from portal sites, your donations must be completed by September 2025. However, standard credit card points and tax deduction benefits remain available after October. Some municipalities may even expand thank-you gifts in the future. While a last-minute surge in donations is expected due to the law change, it is not always necessary to rush.
Q. Why are portal site reward points for Hometown Tax being abolished?
A. The Hometown Tax system is designed to support local governments in Japan. However, in some cases, portal sites had normalized offering additional reward points, creating excessive competition. Points were often funded by fees paid by the municipalities to the portal sites, raising concerns about financial strain on the municipalities. To preserve the original purpose of Hometown Tax—supporting local communities—additional points via portal sites will be prohibited.
Q. Can foreign residents receive tax deductions from Hometown Tax?
A. Yes. Anyone paying income tax or resident tax in Japan, regardless of nationality, can make Hometown Tax donations and receive tax deductions. You can choose any municipality nationwide as your donation destination, not limited to your birthplace or regions you have personal ties to.
Some municipalities also provide English-language Hometown Tax portals, such as: Kyotango Hometown Tax English Site
Q. Can foreign residents earn portal site points from Hometown Tax?
A. Most Japanese point programs reward users who pay with Japanese credit cards or cashless payment methods. If you have a valid account for these programs and use it to pay for your Hometown Tax donation, points will be granted.
In most cases, credit cards and cashless payments are available to anyone in Japan who meets basic requirements, such as having a Japanese address or phone number and presenting a residence card for identity verification, regardless of nationality.
Chapter8: Summary
Starting October 2025, additional points awarded through portal sites for Hometown Tax (Furusato Nozei) donations will be abolished due to legal revisions. This change comes in response to the recent surge in point-based competition, which had shifted focus away from the original purpose of the system: supporting local communities.
Until the end of September, some portal sites may still offer additional points through campaigns, but these will no longer be available from October onward. Standard points earned via credit cards or cashless payments will continue to be granted.
Tax deductions for income and resident taxes, as well as thank-you gifts from municipalities, remain unchanged. Foreign residents paying taxes in Japan are also eligible to participate in Hometown Tax and enjoy its benefits.
* This article is provided for general informational purposes only and does not constitute individual financial, tax, or legal advice. While reviewed and supervised by a certified financial professional, readers are encouraged to consult their own financial advisor before making any investment decisions. Belonging JAPAN is not affiliated with or endorsed by any financial institution mentioned. Information such as fees and regulations is accurate as of September 2025 and may change; readers should verify details with official sources.
