Furusato Nozei Donation Limit Calculator (Hometown Tax, 2026)

Furusato Nozei (ふるさと納税, “hometown tax”) is a system where you donate to a local government of your choice. The part of the donation above ¥2,000 is, as a rule, deducted in full from your income tax and resident tax, up to a limit (Ministry of Internal Affairs and Communications, MIC). MIC's own example: a salaried worker earning ¥7 million whose only dependant is a spouse donates ¥30,000, and ¥28,000 (¥30,000 minus ¥2,000) is deducted from income tax and resident tax.

Municipalities usually thank donors with return gifts, and MIC's rules do not allow a return gift whose cost to the municipality exceeds 30% of the donation. Because the benefit is a deduction from tax you actually pay, it only helps if you pay enough income tax and resident tax. If you owe very little, the calculator above shows almost no benefit.

The part above the limit is not deducted, so your out-of-pocket cost rises above ¥2,000. You can donate any amount, but to get the full deduction, keep to the estimate shown above.

According to MIC, your out-of-pocket cost (effectively ¥2,000) is the same either way. What differs is how you receive the deduction. With the One-Stop Exception (ワンストップ特例制度), the whole amount reduces next fiscal year's resident tax and there is no income tax refund. With a tax return, the income tax part is refunded for the year of the donation and the resident tax part reduces next fiscal year's resident tax. The tax return is due by March 15 of the following year, and you attach the receipts from each municipality.

The One-Stop Exception is only available to salaried workers who do not need to file a tax return for another reason, and only if you donate to five or fewer municipalities. You submit an application form to each municipality when you donate; forms differ by municipality, and some accept an online application with a My Number card. If you later change address, notify each municipality by January 10 of the following year.

Watch for this trap: if you donate to six or more municipalities, or you file a tax return anyway (for example to claim a medical expense deduction), the One-Stop applications no longer apply and you must declare all your Furusato Nozei donations in your tax return (MIC; National Tax Agency English guide).

Resident tax is levied on people registered in a municipality as of January 1, regardless of nationality (Shinjuku City's English page). The Furusato Nozei deduction comes off the income tax and resident tax you pay in Japan, so it presupposes that you are liable for them.

The resident tax part of the deduction reduces the following fiscal year's resident tax. If you will have left Japan and have no address here on January 1 of the following year, there may be no resident tax left to reduce. Check with your municipality and your tax office before donating. For how resident tax timing works in your first and last years, see our resident tax timing guide.

This calculator assumes a salaried worker who is single or in a dual-income couple, with no spouse or dependant deduction. A spouse or dependant deduction, a mortgage tax credit, a medical expense deduction, iDeCo contributions and similar items change your resident tax and tax rate, so your limit will differ from the figure shown. Check the Ministry's Furusato Nozei portal or your municipality.