Furusato Nozei (Hometown Tax) in Japan: A Complete Guide, Calculator, and Website for Foreign Residents
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Furusato Nozei is a unique hometown tax system in Japan that allows you to redirect your local resident tax to a municipality of your choice. In return for your donation, many municipalities offer gifts, such as local specialties like agricultural products, seafood, wagyu beef, and traditional sweets.
Additionally, by participating in the Furusato Nozei system (Hometown Tax), your donations become eligible for income tax refunds and resident tax deductions. This means the actual cost for you to take advantage of this program is just 2,000 yen. Through Furusato Nozei (Hometown Tax), you can enjoy a variety of local specialties that you wouldn’t normally have access to by simply paying resident tax.
For foreign residents working in Japan, Furusato Nozei (Hometown Tax) offers a valuable opportunity to enjoy a wide array of regional specialties for almost no cost, making it a program well worth exploring.
One of the attractive features of this system is the flexibility to choose how your donation is used. For instance, if you want to support disaster-stricken areas, such as those affected by earthquakes or typhoons, you can direct your donations to those regions and contribute to rebuilding efforts.
In this article, we explain a comprehensive overview of the Furusato Nozei system, including its benefits and drawbacks for foreign residents in Japan. We also explain how to use the system, highlight some recommended Furusato Nozei websites, and offer a calculator to estimate your donation and tax benefits. By following this guide, you can take full advantage of the Furusato Nozei system, pay your taxes, and enjoy regional specialties from all over Japan.
目次
- Furusato Nozei (Hometown Tax) in Japan
- Steps for Foreign Residents Using Furusato Nozei (Hometown Tax)
- Recommended Furusato Nozei Gifts for Foreign Residents
- Useful Tips for Foreign Residents on Furusato Nozei (Hometown Tax)
Furusato Nozei (Hometown Tax) in Japan
When you participate in Furusato Nozei (Hometown Tax), you can donate to a municipality of your choice. The portion of your donation exceeding 2,000 yen is generally fully deducted from that year's income tax and the following year's resident tax. The maximum deduction amount depends on factors such as your income and family size. Donations beyond this limit are not eligible for deduction, so it's important to check the donation limit chart provided by the Ministry of Internal Affairs and Communications when using the Furusato Nozei system.
For example, if your annual income is 4 million yen and you have no dependents, you can receive a full deduction for donations up to around 42,000 yen. By donating 42,000 yen to municipalities like Asahikawa City in Hokkaido, Yamanashi City in Yamanashi Prefecture, Yahiko Village in Niigata Prefecture, or Fujieda City in Shizuoka Prefecture, you can enjoy tax deductions while receiving luxurious local specialties such as premium Asahikawa beef, top-grade Yamashita peaches, Koshihikari rice, and snow crab.
Benefits of Furusato Nozei
- Receive local specialties from various regions of Japan.
- Donations are deductible from income and resident taxes (*subject to an upper limit based on income).
- You can donate to multiple municipalities.
- Support the region of your choice.
- Specify how your donation is used, such as for children’s education, environmental protection, or disaster relief.
Disadvantages of Furusato Nozei
- The process can be time-consuming.
- Foreign residents with low incomes may not find it as beneficial.
- Foreign residents exempt from income or resident taxes are not eligible for this system and receive no benefits.
Recommended Furusato Nozei Websites for Foreign Residents
You can make Furusato Nozei (Hometown Tax) donations without needing to register for membership. The site explains the Furusato Nozei system through manga, making it easy for foreign beginners to understand. Various payment methods are available, such as credit cards, cash via registered mail, and payment slips (payment options may vary by municipality), allowing even foreign residents without a credit card to use the service.
Additionally, check out the subscription option, which allows multiple return gifts to be delivered in several shipments for a single donation. By signing up for a free Furunavi membership and donating to return gifts with fewer than five reviews, you can earn 200 Furunavi Coins by posting a review. If you pre-register and donate by February 2, 2025, you can also receive up to 10% back in Furunavi Coins. (Furunavi Coins can be exchanged for Amazon gift cards, PayPay balance, d points, or Rakuten points).
Satofull proudly holds the top user satisfaction rating among Furusato Nozei websites. It offers donation options from over 1,700 municipalities across Japan, and the entire process can be completed conveniently online. By signing up for a free membership, you can easily track your donation history and monitor the delivery status of your return gifts through your personal My Page.
One of Satofull's standout features is the speedy delivery of return gifts, which can arrive in as little as one week after a donation is made. You can search for return gifts by category, including gift type, region, donation amount, or popularity. Satofull also offers curated special collections, such as those focused on eel, fruit, donations under 8,000 yen, electronics, and beauty products.
The site provides a range of helpful tools and resources, including guides on how to file tax returns, details about the one-stop exemption system, and a donation deduction calculator. Satofull makes it easy for you and others to navigate the Furusato Nozei system and maximize the benefits of your donations.
Steps for Foreign Residents Using Furusato Nozei (Hometown Tax)
Choose the Municipality and Return Gifts
Visit the Furusato Nozei website and select the municipality, return gifts, and how you want your donation to be used.
Make Your Furusato Nozei (Hometown Tax) Donation
Once you’ve selected the municipality, complete your donation through the Furusato Nozei website. Payment methods vary depending on the municipality and website, but usually include options such as credit card, bank transfer, postal transfer, or cash via registered mail.
Note: If you wish to use the Furusato Nozei One-Stop Exception System (which allows municipalities to handle tax declarations for up to five donations per year – see more details here) should select the corresponding municipality within the site’s form.
Receive Your Return Gifts
The return gifts you selected during the donation process will be delivered to you.
Note: Delivery times may vary depending on the municipality and the return gifts, and could take several months.
Receive Your Donation Receipt
You will receive a donation receipt from the municipality you donated to. This document is required when filing your tax return, so make sure to keep it safe. Some municipalities send the receipt along with the return gifts, while others may send it 1-2 months after the donation is processed. If you used the Furusato Nozei One-Stop Exception System, the application form will be sent with the donation receipt.
Complete the Tax Refund Process (Income and Resident Tax)
To receive your tax refund, you must either use the Furusato Nozei One-Stop Exception System or file a tax return. (Please refer to the detailed instructions in the useful tips section.)
Receive Your Tax Deductions
Your tax refund will be applied to your income tax for the year in which you made the donation, and your resident tax deduction will be applied the following year. However, for foreign residents who used the One-Stop Exception System, there will be no income tax deduction. Instead, the deduction will apply to your resident tax starting in June of the following year.
Recommended Furusato Nozei Gifts for Foreign Residents
Fruits
In addition to popular fruits like peaches, pears, melons, and strawberries, Furusato Nozei offers rare varieties of mangoes and organically grown fruits as return gifts. By making a donation, you can enjoy fresh, locally sourced fruits delivered directly from farms across Japan, giving you a taste of the country's seasonal produce.
Check Out Furusato Nozei Options Where You Can Receive Fruits (in Japanese)
Meat products
Meat is the most popular return gift offered through Furusato Nozei, with a wide selection including Saga Beef, Kyushu Black Wagyu, and Sangen Pork. With over 200 different beef brands in Japan, Furusato Nozei provides foreign residents the unique opportunity to enjoy premium wagyu and local beef from various regions—options they might not typically have the chance to purchase.
Check Out Furusato Nozei Options Where You Can Receive Meat products (in Japanese)
Sweets
From traditional Japanese sweets like dorayaki and daifuku to Western favorites like cakes, macarons, ice cream, and gelato, Furusato Nozei offers a wide variety of confectionery return gifts. As a foreign resident living a busy life in Japan, making a donation through Furusato Nozei allows you to indulge in delicious treats and savor a moment of bliss.
Check Out Furusato Nozei Options Where You Can Receive Sweets (in Japanese)
Useful Tips for Foreign Residents on Furusato Nozei (Hometown Tax)
Useful Tip Furusato Nozei One-Stop Exception System
Foreign residents, such as company employees, who typically do not need to file a tax return and have donated to five or fewer municipalities through Furusato Nozei in a single year (based on the number of municipalities, not the number of donations), can apply for the Furusato Nozei One-Stop Exception by submitting the required One-Stop Exception Application Form along with the necessary documents.
By January 10th of the year following your Furusato Nozei donation, please send the completed One-Stop Exception Application Form, along with your My Number verification and identification documents, to each municipality where you made a donation. If you do not receive the form or have misplaced it, you can download it from the Ministry of Internal Affairs and Communications website [PDF].
Useful TipTax Return Filing
Foreign residents who are self-employed or otherwise required to file a tax return, as well as those who have donated to six or more municipalities through Furusato Nozei (Hometown Tax) in a single year (based on the number of municipalities, not the number of donations), must file a tax returnM. By March 15th of the year following your Furusato Nozei donations, please submit your tax return at the tax office responsible for your area of residence, ensuring that you attach all relevant donation receipts.
Useful TipMy Number verification and identification documents
When using the Furusato Nozei One-Stop Exception System, the following My Number verification and identification documents are required.
My Number Verification Documents | Identification Documents | |
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For those with a "My Number Card" | Copy of the front side of the My Number Card | Copy of the back side of the My Number Card |
For those with a "My Number Notification Card" | One of the following:
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One of the following:
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For those without a "My Number Card" or "My Number Notification Card" | Copy of a residence certificate with the My Number listed | Copies of any two of the following:
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