🏡 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, portal sites can no longer give donors points for furusato-nozei donations. Points that a card or payment company grants as part of an ordinary payment may still apply, but extra points offered specifically for furusato-nozei payments are covered by the ban, so check each provider's terms. 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, up to your limit).
Source: Ministry of Internal Affairs and Communications (MIC) press release (Japanese) ↗
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, but to receive the deduction benefit, you must be registered as a resident and 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; with the One-Stop Exception it is all applied to resident tax).
- You receive local gifts (返礼品): The recipient municipality sends regional specialties; by law, the gift's cost to the municipality may not exceed 30% of your donation, and gifts must be local products.
- It works as a tax deduction (not a prepayment): the donation minus ¥2,000 is deducted from income tax and next year's resident tax, up to your limit. Above your limit the deduction no longer covers the whole amount, so your out-of-pocket cost rises above ¥2,000.
📌 Example: a single employee with ¥4M annual salary (before tax) donates up to the approximate limit (~¥42,000) and pays ¥2,000 out of pocket; the gifts' cost to the municipality may be up to about ¥12,600 (estimate only; results vary, and gifts may in some cases be treated as occasional income for tax purposes).
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 | You must be registered as a resident on 1 January of the following year; the deduction then reduces the resident tax billed from June |
| Nationality is not a condition | What matters is that you are registered as a resident and pay income and resident tax in Japan. A resident registration is generally available to mid- to long-term residents (for example, holders of work, permanent resident, long-term resident or family-stay status) but not to short-term visitors; if your situation is unusual, ask your municipality |
⚠️ 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 |
※ Estimates for a single employee (or dual-income couple) with salary income only, assuming social insurance of about 15% of income and no mortgage deduction. 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 | Employees who do not need to file a tax return for any other reason; donations to 5 or fewer municipalities | People who file a tax return anyway (e.g., self-employed people, or employees claiming medical expenses), and anyone donating to 6 or more municipalities |
| Process | Mail application form to each municipality (per donation), arriving by 10 January of the following year | File tax return Feb 16–Mar 15 of following year |
| Foreign note | Attach a copy of your My Number confirmation document and your residence card (or other ID); watch middle name formatting | Prepare residence card + My Number documents |
📌 A tax return may be more suitable in some situations: One-stop is convenient, but foreigners may face issues with middle names or ID document requirements, and a departure before deductions are applied is another consideration. A tax return offers more flexibility; if you file a return, a One-Stop application becomes invalid and all donations must be included in the return. 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) and address, then pay. If you will use the One-Stop Exception, your My Number is required on the application form.
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 copies of your My Number confirmation document and ID (e.g. residence card) to each municipality so that it reaches them by January 10 of the following year (for 2026 donations: 10 January 2027, a Sunday — send it early). If your address changes before then, send a change notification by the same date. [Tax return] File via e-Tax or at a tax office between 16 February and 15 March of the following year, attaching the donation receipt.
5
Receive your benefitIncome tax refund (tax return filers) typically takes about 3 weeks for e-Tax or roughly 1 to 1.5 months in the filing season, and may take longer. 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 are no longer registered as a resident on January 1 after your donation, no resident tax is billed for that year and the resident-tax deduction is lost. Whether any income-tax deduction can still be claimed depends on your tax return for the year of the donation — check with the tax office before you leave. 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.
💡 Visa type is not the test: what matters is that you are registered as a resident and pay income and resident tax in Japan (resident registration is generally available to mid- to long-term residents, not short-term visitors).
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?
If you are no longer registered as a resident on January 1 after your donation, no resident tax is billed for that year and the resident-tax deduction is lost. Whether any income-tax deduction can still be claimed depends on your tax return for the year of the donation, so check with the tax office. Check your departure schedule before deciding to donate.
What if I donate more than my deduction cap?
Above your limit, the deduction no longer covers the whole amount, so your out-of-pocket cost rises above ¥2,000. Always check your limit before donating.
As a salaried employee, do I need to file a tax return?
If you donate to 5 or fewer municipalities and do not need to file a tax return for any other reason, you can use the One-Stop Exception. However, foreigners should be aware of middle name formatting and ID document requirements. If you donate to 6 or more municipalities, or you file a tax return anyway (for example, if you are self-employed or claim medical expenses), you must include the donations in your tax return, and any One-Stop application becomes invalid.
Sources & references
- NTA「No.1155 Furusato Nozei (donation deduction) ↗」
- NTA「No.2020 Final tax return ↗」
- MIC「Furusato Nozei: how the deduction works (Japanese) ↗」
- MIC「Revision of the fundraising standards (press release, Japanese) ↗」
- MIC「Q&A on the revised standards (Japanese) ↗」
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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