- June 30, 2026
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Japan has a unique tax scheme called furusato nozei — a system that lets you donate to the local government of your choice and receive two things in return: a tax deduction on next year’s bill, and a gift from the region you supported, typically a local speciality or produce.
It sounds straightforward, but two questions come up every time: how much will I actually save on tax? And what do I need to do to claim the deduction and receive the gifts?
This guide answers both. Certified Financial Planner Lili Katoh walks you through exactly how to apply for furusato nozei in Japan — from calculating your personal deduction limit to completing the paperwork — in plain language, written specifically for foreign residents.
This article is supervised by Lili Katoh, CFP® (Money Step Office Inc.).
New to furusato nozei? Before diving into the application process, we recommend reading our foundational guides first:
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.
Table of Contents
Chapter 1: How Much Can You Donate? Calculating Your Limit
1-1. Why Your Limit Matters
Furusato nozei is a system that allows you to donate to any local government — prefecture or municipality — of your choosing across Japan.
There is no cap on how much you can donate, but there is a limit on how much of that donation qualifies for a tax deduction. Specifically, the portion of your total donations that exceeds ¥2,000 can be deducted from your income tax and resident tax — up to a ceiling that varies by individual. That ceiling is determined by your income, your resident tax amount, your family situation, and any other deductions you are already claiming.
In other words: to get the most out of furusato nozei, you need to know your personal limit before you start donating. You can donate above that limit — but anything beyond it comes entirely out of your own pocket, with no tax benefit attached.
1-2. The Three Factors That Determine Your Limit
So how much should you donate to maximise your tax deduction? The answer depends on three things: your annual income, your family situation, and what other deductions you are already claiming. The examples below show how the deductible ceiling plays out across different income levels and household compositions.
1-3. Estimated Limits by Income and Household
The examples below show how much you can donate to receive the maximum tax benefit. Your self-payment of ¥2,000 is included in these figures.
| Example | Household | Annual income | Donation limit | Tax benefit |
|---|---|---|---|---|
|
1 |
Single |
¥6M |
¥77,000 |
¥75,000 |
|
2 |
Couple (one income) |
¥6M |
¥67,000 |
¥65,000 |
|
3 |
Couple + 2 children (ages 16–18) |
¥8M |
¥109,000 |
¥107,000 |
|
4 |
Couple + 2 children (ages 16–18) |
¥10M |
¥154,000 |
¥152,000 |
|
5 |
Couple + 2 children (age 15 or under) |
¥10M |
¥167,000 |
¥165,000 |
|
6 |
Couple, both working (¥5M each) + 2 children (age 15 or under) |
¥10M combined |
¥122,000 combined (¥61,000 each) |
¥118,000 combined (¥59,000 each) |
In each case, the tax benefit is the donation limit minus the ¥2,000 self-payment, which is deducted from your income tax and resident tax.
Note: The figures above apply to salaried employees. These are estimates only — your actual limit may differ depending on your employment type, household situation, and any other deductions you are already claiming. Please consult a tax accountant or qualified tax professional for advice specific to your circumstances.
1-4. If You Are Using Other Tax Deductions
Furusato nozei works by reducing your income tax and resident tax. But it is not the only tax-reduction scheme available in Japan — others include the mortgage tax deduction (住宅ローン控除), the medical expense deduction (医療費控除), and the small enterprise mutual aid deduction through iDeCo (小規模企業共済等掛金控除).
If you are using the mortgage tax deduction, the amount of that deduction — combined with how you file your furusato nozei claim (via the one-stop special system or a tax return, explained later) — may affect whether you can use your full furusato nozei tax benefit.
The medical expense deduction and iDeCo deduction both reduce your taxable income, which in turn can lower your furusato nozei deduction ceiling. In other words, the more deductions you are already claiming, the lower your effective furusato nozei limit may be.
Because the actual tax saving depends on your income, the type and combination of deductions you use, and the amount of each deduction, the interaction between these schemes is genuinely complex. For your specific situation, please consult a tax accountant or qualified tax professional.
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Chapter 2: How to Apply for Furusato Nozei Step by Step
2-1. Choosing a Portal Site
You can apply for furusato nozei directly through your chosen municipality’s official website, or through a dedicated portal site that aggregates furusato nozei listings from across Japan.
Portal sites are run by a wide range of operators — not just specialist furusato nozei platforms, but also airlines, railway companies, and e-commerce businesses. Examples include (in alphabetical order):
- ANA Furusato Nozei
- Amazon Furusato Nozei
- JAL Furusato Nozei
- JRE MALL Furusato Nozei
- Satofull (さとふる)
- Furusato Choice (ふるさとチョイス)
- Furunavi (ふるなび)
- Yahoo! Furusato Nozei
- Rakuten Furusato Nozei (楽天ふるさと納税)
…and more.
Furusato nozei is available through 46 prefectures and 1,735 municipalities across Japan. Unless you already have a specific local government in mind, searching through individual municipal websites would take considerable time and effort. Portal sites solve this by bringing all that information together in one place, allowing you to filter by region, donation amount, or the type of return gift you are looking for.
Once you have chosen where to donate, most portal sites let you complete the full application and payment in one flow — via credit card, mobile carrier billing, or smartphone payment apps. As with regular online shopping, you will often earn points on your payment depending on the method you use.
2-2. Step-by-Step: How to Apply for Furusato Nozei Through a Portal Site
Here is how to apply for furusato nozei through a portal site — the most straightforward route for most foreign residents in Japan. The exact flow varies slightly between platforms, but the process generally works as follows.
Step 1: Create an account
Register on your chosen portal site by entering your email address, password, and name.
Step 2: Choose a municipality and donation amount
Browse the listings and select where you want to donate. Most portal sites display return gifts with photos, making it easy to narrow down your options. Once you have chosen, select your donation amount.
Step 3: Confirm your details
Review the municipality name, donation amount, and your personal details including your delivery address. This is where your return gift will be sent, so check carefully. Some portals allow you to specify a delivery date or send the gift to a different address. On the same screen, you may also be asked to designate how your donation will be used, and whether you want to use the one-stop special system (ワンストップ特例) — more on that below.
Step 4: Complete payment
Select your payment method — credit card, bank transfer, or smartphone payment, depending on the portal. If you have saved a card or accumulated points on the portal, you may be able to use those here. Once payment is confirmed, your furusato nozei donation is complete.
Step 5: Submit your one-stop special system application
One of the most important steps when learning how to apply for furusato nozei as a salaried employee is understanding the one-stop special system. If you meet the conditions, you can receive the full tax benefit without filing a tax return. Many portal sites allow you to complete this application online through your account page. If online applications are not supported, the municipality will send a paper form by post — fill it in and return it before the deadline.
If you are self-employed and already file a tax return, skip this step. Keep the donation receipt certificate (寄付金受領証明書) that arrives by post — you will need it when filing your return.
Step 6: Receive your return gift and check next year’s resident tax
After confirming your payment, the municipality will dispatch your return gift. If you specified a delivery date on the portal, it should arrive around that time.
If you used the one-stop special system, the furusato nozei tax reduction will be reflected in your resident tax the following year. Around June, your employer will issue a resident tax notice (住民税決定通知書) — check the entries for “donation deduction” (寄付金控除額) and “tax credit” (税額控除額) to confirm the benefit has been applied correctly.
2-3. One-Stop Special System vs Tax Return: Which Should You Use?
Salaried employees → One-stop special system
If you are employed by a company and receive a monthly salary, you can use the one-stop special system (ワンストップ特例) to claim your furusato nozei tax deduction without filing a tax return — one of the biggest advantages of the scheme for company employees.
There is one important condition: the system is only available if you donate to five or fewer municipalities in a single year. If you donate to six or more, the one-stop special system cannot be used and you will need to file a tax return instead.
The same applies if you miss the application deadline — if the one-stop paperwork is not submitted in time, the tax benefit will not be applied automatically. In that case, file a tax return to claim the deduction.
Freelancers and self-employed → Tax return
If you are freelance or self-employed and already file an income tax return (確定申告), your furusato nozei deduction is claimed through the same process. There is a dedicated section on the tax return form for donation deductions — enter your furusato nozei contributions there alongside your other income, expenses, and deductions such as medical expenses or iDeCo contributions. Keep the donation receipt certificate (寄付金受領証明書) sent by each municipality, as you will need it when filing.
2-4. Common Mistakes and Important Notes for Foreign Residents
Notifying municipalities when you move
If you move after making a furusato nozei donation, you need to notify the relevant municipalities of your new address. This is especially important when using the one-stop special system: resident tax is assessed based on your registered address as of 1 January of the year following your donation. If you move before the end of the year in which you donated, submit an address change notification to each municipality you donated to. The necessary forms can be obtained through the portal site or directly from the municipality.
Note: The required steps may differ depending on the timing of your move — check with the portal site or the relevant municipality for details.
If you are claiming your furusato nozei deduction through a tax return rather than the one-stop special system, no address change notification to the municipality is required. The donation receipt certificate (寄付金受領証明書) issued before your move can still be used when you file your return for that year.
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My Number (マイナンバー)
Making a furusato nozei donation itself does not require a My Number or My Number Card. However, My Number is required if you use the one-stop special system. For paper applications, you will need to attach a copy of your My Number Card for identity verification. For online applications, you will be asked to scan your My Number Card during the process.
My Number is assigned to all mid- to long-term foreign residents registered in Japan. You can also apply for a physical My Number Card at your local municipal office.
Donating above your limit
Furusato nozei does not give you a tax deduction on the full amount you donate. Only the portion that exceeds the ¥2,000 self-payment — and falls within your personal deduction ceiling — qualifies for the tax benefit. There is no cap on how much you can donate in total, but anything above your limit comes entirely out of your own pocket with no tax advantage. Knowing your limit before you start is one of the most important parts of how to apply for furusato nozei effectively.
Chapter 3: How to Choose Your Return Gifts
3-1. The Basics of Choosing a Return Gift
Return gifts are one of the most appealing aspects of furusato nozei, alongside the tax benefit itself. From food and drinks to daily necessities, restaurant vouchers, and travel certificates, municipalities across Japan offer an enormous variety of gifts that showcase their local produce and specialities.
By law, the value of a return gift must not exceed 30% of the donation amount. This means a ¥10,000 donation typically comes with a gift worth around ¥3,000.
3-2. Return Gift Ideas by Lifestyle
One of the most enjoyable parts of how to apply for furusato nozei is choosing where your donation goes — and what you get back. Here are some suggestions based on what matters most to you.
You want practical everyday items
Look for municipalities offering food staples such as water, vegetables, and meat, or household essentials like tissues and toilet paper. Even smaller donations often come with generous quantities. At higher donation levels, some municipalities offer subscription-style deliveries spread across several months.
You love cooking or care about what you eat
Wagyu beef, seafood, rice, and fruit are popular choices, and the quality is often exceptional — most return gifts are shipped directly from the producer, so fish and fruit in particular tend to arrive fresh. Some municipalities offer 10kg of rice for just a few thousand yen, making it a genuinely useful contribution to your everyday kitchen.
You enjoy travel and the outdoors
Many municipalities offer travel vouchers, accommodation certificates, or experience-based gifts in their local area. Some accommodation gifts are tied to a specific property, while others are issued as coupons redeemable on affiliated travel booking sites — giving you the flexibility to plan your trip later.
You want to experience Japanese culture
Look for municipalities offering traditional crafts, ceramics, local sake, matcha, and other regional specialities. Rice-producing regions are known for their sake, while areas with high-quality water often produce excellent beer or craft beverages. Some municipalities even offer experience tickets for Japanese cooking classes, wagashi sweet-making, kimono dressing, or matcha ceremonies.
Chapter 4: Advice from a Certified Financial Planner
Furusato nozei is a system that lets you support local communities across Japan, reduce your tax bill, and enjoy return gifts — all at once. To get the most out of it, start by calculating your personal deduction limit accurately, then choose return gifts that genuinely fit your lifestyle.
If you are employed by a company, the one-stop special system keeps the paperwork to a minimum. Use it — it makes the whole process significantly simpler.
Approach furusato nozei as a long-term habit rather than a one-off exercise, and you will find it becomes one of the most rewarding parts of financial life in Japan. Use it wisely, and let it be your introduction to the people, produce, and places that make each region of Japan worth discovering.
Chapter5: Frequently Asked Questions (FAQ)
As a Certified Financial Planner working with foreign residents in Japan, these are the questions I am asked most often about how to apply for furusato nozei. If you are just getting started, the answers below should address most of what you need to know.
How do I calculate my furusato nozei deduction limit?
The total deduction is made up of three components:
① Income tax deduction = (Donation amount − ¥2,000) × your income tax rate
Note: If you use the one-stop special system, no income tax deduction is applied separately — the full deductible amount is instead deducted from your resident tax.
② Resident tax deduction (basic) = (Donation amount − ¥2,000) × 10%
The donation amount eligible for deduction is capped at 30% of your total gross income.
③ Resident tax deduction (special) = (Donation amount − ¥2,000) × (100% − 10% − your income tax rate)
If this figure exceeds 20% of your resident tax income levy, the amount is capped at: resident tax income levy × 20%.
The actual calculation is complex. For a precise figure, consult a tax accountant or use the simulation tools available on most portal sites.
Can foreigners receive a tax deduction through furusato nozei?
Yes. As long as you pay income tax or resident tax in Japan, you can make furusato nozei donations and receive the corresponding tax deduction regardless of nationality. You are also free to donate to any municipality in Japan — there is no requirement to choose a region connected to your home country or personal background.
One important condition: to be eligible for the tax deduction, you must be subject to resident tax in Japan as of 1 January of the year following your donation. If you are planning to leave Japan before the end of the year, check in advance whether you will qualify.
What is the one-stop special system deadline for 2026 donations?
The standard deadline for submitting one-stop special system applications is 10 January of the year following your donation. For donations made in 2026, the deadline is 10 January 2027 — however, as this falls on a Sunday, some municipalities may set their effective deadline as Friday, 8 January 2027. Check directly with each municipality you donated to for confirmation.
Chapter6: Summary
Furusato nozei is a scheme that lets you support municipalities across Japan through donations while receiving a deduction on your income tax and resident tax. Knowing how to apply for furusato nozei effectively starts with understanding your personal deduction limit — which depends on your annual income, household situation, and any other deductions you are already claiming.
Choose the application method that suits your situation — the one-stop special system if you are a salaried employee, or a tax return if you are self-employed — and take the time to pick return gifts that genuinely fit your lifestyle. Used thoughtfully, furusato nozei is one of the most rewarding parts of managing your finances as a foreign resident in Japan.
*This article is supervised by Certified Financial Planner Lili Katoh (Money Step Office Inc.) and covers the tax and practical aspects of furusato nozei for foreign residents in Japan. For advice on how the scheme interacts with your specific income, deductions, or tax filing situation, please consult a qualified tax accountant (税理士) or contact your local tax office directly.
This article is provided for general informational purposes only and does not constitute individual financial, tax, or legal advice. While reviewed by a Certified Financial Planner, readers are encouraged to consult their own advisors before making decisions. BELONGING JAPAN is not affiliated with or endorsed by any furusato nozei portal site or municipality mentioned in this article. Information including deduction limits, deadlines, and regulations is accurate as of June 2026 but may change; please verify details with official sources such as the Ministry of Internal Affairs and Communications.
