🏡 Furusato Tax
Furusato Tax for Foreigners Guide【2026 · Eligibility · Deduction Limits · Key Cautions】
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📋 Contents
📢 Furusato Nozei rule change from October 2025
- Under the MIC revision to the fundraising standards, from 1 October 2025 (Reiwa 7), soliciting furusato-nozei donations through operators (portal sites) that grant points to donors is prohibited.
- As a result, earning points on donations is no longer possible. However, the deduction mechanism itself is unchanged (with an effective ¥2,000 out-of-pocket cost, the rest of the donation is deducted from your taxes).
Source: Ministry of Internal Affairs and Communications (MIC)
Furusato Nōzei (hometown tax donation) is a system that lets anyone donate to local governments across Japan, regardless of nationality. However, to benefit from the income tax refund and resident tax deduction, you must have a registered address (住民票) in Japan and be paying income tax and resident tax — with a further expectation that resident tax will be levied the following year.
💡 Key Points
- Making a furusato nozei (hometown tax) donation itself is possible regardless of nationality or residence status, but to receive the deduction benefit, you must be paying resident tax and income tax in Japan.
- The deduction limit varies depending on annual income and family structure, and as long as you stay within that limit, your out-of-pocket cost is, in principle, only 2,000 yen.
- There are two filing methods — the One-Stop Exception and the tax return (kakutei shinkoku) — and for foreign nationals, the tax return is sometimes chosen due to issues with how middle names are written or identity verification documents.
- If you plan to return to your home country or leave Japan, you may be unable to receive the resident tax deduction if you are not registered as a resident (juminhyo) as of January 1 of the following year, so the timing of your donation requires attention.
① What is Furusato Nōzei?
Three key features of the system:
- You only pay ¥2,000 out of pocket: The portion of your donation above ¥2,000 is returned through an income tax refund + the following year's resident tax reduction (within the deduction cap).
- You receive local gifts (返礼品): The recipient municipality sends regional specialties worth roughly 30% of your donation.
- It's essentially prepaid tax: Technically, you're pre-paying next year's resident tax to a municipality of your choice. Any amount beyond your cap is simply a personal expense.
📌 Example: Someone earning ¥4M/year donates up to the cap (~¥42,000), pays ¥2,000 out of pocket, and receives local gifts worth about ¥12,000 — a net benefit of roughly ¥10,000 (estimate only; results vary).
② Eligibility for Foreigners
| Condition | Details |
|---|---|
| Registered residence (住民票) | Foreigners with a valid residence registration in Japan are eligible |
| Paying income tax & resident tax | Taxable income in Japan; taxes actually paid or withheld |
| Expected to pay resident tax next year | Resident tax deduction is applied from June of the following year — you must still be resident then |
| Residence status not restricted | Work visa, permanent resident, long-term resident, dependent (if working), etc. |
⚠️ No tax benefit without taxable income: If you have no income and pay no resident tax or income tax, you can still donate but will not receive any deductions — making it purely a purchase of local goods.
③ Deduction Limits by Income (Reference)
| Annual Income | Approx. Deduction Cap (single, no dependents) | Out-of-pocket |
|---|---|---|
| ¥2,000,000 | ~¥15,000 | ¥2,000 |
| ¥3,000,000 | ~¥28,000 | ¥2,000 |
| ¥4,000,000 | ~¥42,000 | ¥2,000 |
| ¥5,000,000 | ~¥61,000 | ¥2,000 |
| ¥6,000,000 | ~¥77,000 | ¥2,000 |
| ¥8,000,000 | ~¥129,000 | ¥2,000 |
※ These are estimates for a single person with no dependents. The cap decreases if you claim other deductions (spouse, medical, mortgage). Use the simulator on Furusato portals for your actual cap.
Check your deduction limit →
※Your deduction limit varies by income and family size. Always check with the simulator before donating. Those planning to leave Japan may not receive the following year's resident-tax deduction (reflected from June of the next year) — see the next section on One-Stop vs. tax return. Confirm details on the official Ministry of Internal Affairs and National Tax Agency websites.
④ One-Stop Filing vs. Tax Return
| Method | One-Stop Special | Tax Return (確定申告) |
|---|---|---|
| Who | Salaried employees (salary only), ≤5 municipalities | Self-employed, multiple income sources, ≥6 municipalities |
| Process | Mail application form to each municipality (per donation) | File tax return Feb 16–Mar 15 of following year |
| Foreign note | Attach residence card; watch middle name formatting | Prepare residence card + My Number documents |
📌 Tax return filing is often safer for foreigners: One-stop is convenient but foreigners may face issues with middle names, ID document requirements, and potential departure before deductions are applied. Tax return filing offers more flexibility. When in doubt, consult the tax office or a tax professional.
⑤ Step-by-Step Procedure
1
Find a municipality and gift on a Furusato portalUse ふるなび, Rakuten Furusato Nōzei, さとふる, etc. Run the simulator to find your cap, then choose a donation amount.
2
Complete your donation (credit card, bank transfer, convenience store)Enter your name (matching passport/residence card exactly), address, and My Number (recommended), then pay.
3
Receive documents and gift from the municipalityKeep the 寄附金受領証明書 (donation receipt) — you'll need it for your tax filing. One-stop applicants will also receive an application form.
4
File your claim[One-stop] Mail the application form with residence card copy to each municipality (by January 10 of the following year). [Tax return] File via e-Tax or at a tax office between February and March, attaching the donation receipt.
5
Receive your benefitIncome tax refund (tax return filers) arrives within 1–2 months. Resident tax deduction is applied from June of the following year.
⑥ Key Cautions Specific to Foreigners
⚠️ Planning to leave Japan? The resident tax deduction is applied to taxes from June of the year following your donation through May of the year after. If you de-register your address and leave Japan before January 1 of the year after your donation, that year's resident tax will not be levied — meaning you may not receive any deduction benefit at all. If you plan to leave Japan in the near future, carefully consider whether and when to donate.
📌 Middle name issues: Some Furusato application forms don't accommodate middle names or require you to omit them. The name you enter should match your passport and residence card as closely as possible to avoid ID verification problems. Follow the guidance provided by each portal or municipality.
💡 Any residence status is fine: Work visas, permanent residency, long-term residency, dependent status (if working) — as long as you're working and paying taxes in Japan, your residence status type doesn't disqualify you.
⑦ FAQ
Can foreigners use Furusato Nōzei?
Yes — anyone can donate regardless of nationality. But to receive tax deductions (income tax refund + resident tax reduction), you must have a registered residence in Japan and be paying income tax and resident tax.
I plan to return to my home country this year. Should I still donate?
Resident tax deductions apply from June of the following year. If you de-register and leave Japan before January 1 of the year after your donation, you may receive no deduction at all. Check your departure schedule before deciding to donate.
What if I donate more than my deduction cap?
The portion above your cap will not be deducted — it becomes an out-of-pocket expense on top of the base ¥2,000. The "only ¥2,000 self-payment" premise no longer holds. Always simulate your cap before donating.
As a salaried employee, do I need to file a tax return?
If you donate to 5 or fewer municipalities, you can use the one-stop special without filing a tax return. However, foreigners should be aware of middle name formatting and ID document requirements. If you donate to 6 or more municipalities, or if you're self-employed, a tax return is required.
For how resident tax deductions from Furusato Nōzei are calculated and billed, see the resident tax guide.
For the documents, e-Tax steps and overall flow when reporting Furusato Nōzei on your tax return, see the tax filing guide for foreigners.
For those anxious about tax-return calculations and paperwork. Some services let you complete everything online, from data entry to filing (e-Tax). Useful if you have multiple income sources or are filing for the first time.
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* Tax deductions apply only when conditions are met (taxable income, resident registration, expected continued tax liability). Those planning to leave Japan may not receive the following year's resident-tax deduction. Always verify your deduction cap with the portal simulator. System details may change; check official sources.