- October 2, 2025
- BELONGING JAPAN
Furusato Nozei (hometown tax donation) is one of the most widely used tax systems in Japan. In 2023, the amount of donations through this program reached an all-time high, showing how popular it has become. Many people—both Japanese citizens and foreign residents—are interested in furusato nozei but may be unsure how to use it or whether they are eligible.
This guide is written and supervised by Yukako Yamazaki, Certified Financial Planner® (CFP®), 1st Grade Certified Skilled Professional of Financial Planning, and representative of FP Office MIRAI. With professional expertise in household budgeting, retirement planning, and taxation, Yukako provides accurate and practical guidance for anyone considering furusato nozei.
The Hometown Tax points system will change starting October 2025. For more details, please see below.
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Profile of Supervisor & Author
Yukako Yamazaki
Representative of FP Office MIRAI;
Experienced as a Registered Customs Specialist, a bank teller, and transitioned to the path of a financial planner. Founded the financial planning office “FP Office MIRAI” in 2022.
With the motto “Changing the future through reviewing the household budget,” actively engages in household budget consultations, financial article writing, and book supervision, etc.
1st grade Certified Skilled Professional of Financial Planning, Certified Financial Planner®.
Table of Contents
Chapter 1: What is Furusato Nozei?
Furusato Nozei (hometown tax donation in Japan) was introduced in 2008 as a way to support local governments while reducing the gap between big cities and rural areas. Donors can contribute to municipalities of their choice and, in return, receive:
Tax deductions (donations minus 2,000 yen are deductible from income and resident taxes, within a limit).
Gifts such as local specialties, products, or experience-based rewards (usually worth around 30% of the donation).
This combination of tax savings and regional gifts has made furusato nozei a system with strong appeal nationwide.
Chapter 2: Why is Furusato Nozei Popular?
Furusato nozei is popular mainly because of the gifts you receive from the areas you donate to. You can choose the gift, which is usually worth about 30% of your donation. For example, if you donate 10,000 yen, you’ll get a gift worth around 3,000 yen.
The gifts aren’t just local specialties—some areas offer “experience-based” options as well. Choosing an experience over a product can also help support the local economy.
Another reason for its popularity is the tax deduction. The total amount you donate (minus 2,000 yen) is deducted from your income and resident taxes. For example, if you donate 50,000 yen, 48,000 yen will be deducted from your taxes. This means you can enjoy local specialties for an effective cost of just 2,000 yen.
Donations made through furusato nozei are treated as tax-deductible contributions. After applying, the entire donation, minus 2,000 yen, is deducted from your income and resident taxes. However, the deduction limit depends on your income and family structure.
How Furusato Nozei Donations Are Used?
The use of furusato nozei donations is generally flexible, and local governments decide how to use the funds. Donations can be used for various purposes, and if not immediately used, the money may be saved.
If you are interested in how your donation is used, some local governments allow donors to specify the area their money will support, such as children, education, healthcare, disaster relief, or reconstruction. You can check this on furusato nozei websites.
In addition, crowdfunding-style furusato nozei is becoming more popular. Like regular crowdfunding, this method sets a target amount and specific purpose for the donations, and contributions are collected over a limited period. Although gifts are usually offered, the return rate is often lower than regular furusato nozei, allowing more money to be directed toward the project itself.
Chapter 3: How to Use Furusato Nozei?
You can use furusato nozei by following these steps:
Choose a Local Government
Find a local government you want to support or select based on the gifts you want.Make a Donation
Apply for a donation through a furusato nozei website. If needed, you can also request the “One-Stop Special Application Form” for tax deductions.Receive Your Gift
Get the gift you chose. Depending on the shipping schedule, this step may happen before or after the next one.Receive the Donation Receipt
The local government will send you a “Donation Receipt” and the “One-Stop Special Application Form.” These documents are necessary for your tax deduction, so keep them safe.Complete the Tax Deduction Process
Use either the “One-Stop Special System” or “Final Tax Return” to process your tax deduction.Receive Your Tax Deduction
If you file a final tax return, both income and resident taxes will be deducted. If you use the One-Stop Special System, only the resident tax will be deducted. In both cases, the full amount of your donations, minus 2,000 yen, will be deducted from your taxes.
Chapter 4: Furusato Nozei Tax Deduction Methods
You can process your tax deductions using one of the following methods:
One-Stop Special System
This system is available for those who do not need to file a final tax return and have donated to five or fewer local governments.If you’re using paper forms, fill out the One-Stop Special Application Form sent by the local government, include identification documents, and mail everything to the local government by January 10 of the following year. The local government will then notify your home local government about your donation, allowing for the deduction on your resident tax in the next fiscal year.
More local governments now offer online applications, making the deduction process even easier, but you must have a My Number card to use this option.
Final Tax Return
If you’ve donated to six or more local governments or if you need to file a final tax return (for example, if your annual income exceeds 20 million yen, or if you have business income, medical expense deductions, housing loan deductions, or dividend deductions), you must report your furusato nozei donations in your final tax return.If you miss the One-Stop Special Application deadline (January 10), you can still receive deductions by filing a final tax return.
When you file a final tax return, part of the tax deduction will be refunded from your income tax, and the rest will be deducted from your resident tax in the following year.
Chapter 5: Understanding Furusato Nozei Refunds
The method you choose for your application (One-Stop Special System or final tax return) affects where and when your tax deductions apply.
Here’s an example:
- Year of Donation: 2024
- Donation Amount: 50,000 yen
- Personal Cost: 2,000 yen
- Tax Deduction Amount: 48,000 yen
If You Use the One-Stop Special System
The entire amount of 48,000 yen will be deducted from your resident tax for the 2025 fiscal year.
If You File a Final Tax Return
You will receive a refund on your income tax based on your personal tax rate applied to the 48,000 yen. The remaining amount will be deducted from your resident tax.
For example, if your income tax rate is 10%, then:
- Refund from income tax: 48,000 yen × 10% = 4,800 yen
- Remaining amount deducted from resident tax: 48,000 yen – 4,800 yen = 43,200 yen
Regardless of the application method, the total amount deducted is the same. Income tax refunds usually take a few weeks to process after the final tax return, while resident tax deductions will apply to the following year’s tax (in this case, for 2025). You can check the details in the “Resident Tax Notification” issued around June each year.
Chapter 6: Important Things to Know About Furusato Nozei
Check Your Deduction Limit
Furusato Nozei has a limit on how much tax you can deduct. This limit varies based on your income and family situation. Even if you have the same income as someone else, your limit might be different.For example, a family of three (two working adults and one middle school child) with an income of 6 million yen can donate up to about 76,000 yen. A family of four (one working adult and three children) with the same income can only donate about 39,000 yen.
Before you start, use a website to check your deduction limit. If you donate more than this limit, you won’t get extra deductions.
Include Furusato Nozei in Your Tax Return
If you file a tax return, you cannot use the One-Stop Special System for that year. If you’ve already applied through this system, it won’t count anymore once you file your taxes.When you file your tax return, remember to include your Furusato Nozei donations in the “Charitable Donations Deduction” section.
Chapter 7: How Foreigners Can Use Furusato Nozei
Furusato Nozei, which means “hometown tax donation,” is open to everyone—both Japanese and foreigners. If foreigners pay income or resident tax, they can receive tax deductions through the One-Stop Special System or by filing a tax return.
Required Documents for Tax Deductions
To receive tax deductions, you need to provide identification documents. If you have a My Number card, you won’t need any additional documents. However, if you don’t have a My Number card, you will need:
One of the following:
- My Number Notification Card
- Resident Certificate with My Number
Plus one of the following:
- Driver’s License
- Passport
- Residence Card
If you don’t have a My Number card, you’ll need more documents, so it’s best to check in advance.
Important Note About Middle Names
To receive tax deductions, the name on your identification documents (like your My Number card, passport, or residence card) must match.
However, many Furusato Nozei websites are designed for Japanese users, and they often only have spaces for a first name and last name, not middle names.
If your middle name is not included when you register your donation, it may lead to a mismatch with your identification documents, and you might not qualify for tax deductions.
If you have a middle name, consider contacting the Furusato Nozei site to ask how to register your name correctly. If you cannot register your middle name, check with the local government office or tax office for guidance on how to proceed.
Chapter8: System Update in 2025
Furusato nozei 2025 changes: Starting in October 2025, the points system for hometown tax will be revised. This change aims to ensure greater transparency in how points and return gifts are managed. Details are expected closer to implementation, so taxpayers should check official announcements.
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Chapter9: FAQ: Furusato Nozei for 2025
Q1. Can foreigners living in Japan use furusato nozei?
Yes. As long as you pay Japanese income tax or resident tax, you are eligible for furusato nozei. Foreigners can use either the One-Stop Special System or file a final tax return for deductions.
Q2. How much can I donate through furusato nozei?
Your deduction limit depends on your annual income, family size, and household situation. If you donate beyond your limit, the excess will not be deducted. Use an online simulation tool before donating.
Q3. What gifts can I get from furusato nozei?
Gifts typically include local specialties such as wagyu beef, seafood, fruits, rice, and sake. Some municipalities also offer experience-based rewards like travel vouchers or cultural activities.
Q4. What is the personal cost of furusato nozei?
The system ensures that your effective cost is always 2,000 yen, no matter how much you donate (within your deduction limit). The remainder is returned as a tax deduction.
Q5. What happens if I donate to more than five municipalities?
If you donate to six or more municipalities, you must file a final tax return. The One-Stop Special System only applies to donations to five or fewer municipalities.
Q6. What changes are happening to furusato nozei in 2025?
From October 2025, the furusato nozei points system will be revised for greater transparency. For further information please check this article.
Q7. What if my name has a middle name not supported on the website?
Your donation name must match your ID documents (My Number card, residence card, passport, etc.). If the website cannot accept your middle name, contact the municipality or furusato nozei site before donating to avoid deduction issues.
Chapter10: Summary of Furusato Nozei
Furusato Nozei is a system available to anyone. Foreigners who pay income tax or resident tax can also receive tax refunds and deductions.
Before participating, it’s advisable to use a simulation site to check the estimated limit for tax deductions. If you have a middle name, pay attention to how you register your name when making a donation.
*This article is for general informational purposes only and does not constitute individual financial, tax, or legal advice. While reviewed by a certified financial professional, readers should confirm details with the relevant tax office or consult their own financial advisor before making any decisions. Belonging JAPAN is an independent media platform and is not affiliated with or endorsed by any financial institution, government agency, or association mentioned.
