What is Furusato Nozei?

Furusato Nozei (ふるさと納税), or "hometown tax donation system," is a Japanese tax scheme that allows taxpayers to donate money to rural municipalities in exchange for local specialty products while receiving tax deductions. This system was introduced in 2008 to help revitalize rural economies and redistribute tax revenue from urban to rural areas.

When you make a Furusato Nozei donation, you receive two primary benefits: a tax deduction covering most of your donation amount and thank-you gifts from the municipalities you donate to. These gifts, known as henrei-hin (返礼品), typically consist of local specialties worth up to 30% of your donation amount.

Why Should I Contribute to Furusato Nozei?

The most compelling reason to participate in Furusato Nozei is that it's essentially a way to redirect your taxes while receiving valuable gifts in return. Instead of paying your regular resident tax, you can choose to donate that money to municipalities of your choice and receive local specialties as thank-you gifts. The actual cost to you is only ¥2,000, as the rest is fully deductible from your taxes.

Additionally, many donation platforms offer points worth 5-30% of your donation amount on top of the thank-you gifts. These points can be used for future purchases or donations, effectively giving you even more value for your contribution.

How Can I Figure Out My Furusato Nozei Contribution Limit?

Your contribution limit depends on your annual income and family situation. A general rule of thumb is that your maximum donation amount is approximately 20% of your resident tax amount, but this can vary significantly based on your specific circumstances.

How Do I Donate to Furusato Nozei?

The easiest way to make Furusato Nozei donations is through authorized donation platforms like Rakuten Furusato Nozei, Furusato Choice, or Satofull. These platforms let you browse gifts, compare municipalities, and manage your donations in one place. Most platforms offer additional points ranging from 5-30% of your donation amount.

It doesn't matter which platform(s) you use to donate - they generally all have similar products. You should focus on finding gifts you like, and maximizing the bonuses you can get by donating!

Below we've outlined the current best points-back offers:

Changes To Furusato Nozei Points Earning in 2025

Starting from October 2025, the government has announced that you will no longer earn points-back when using Furusato Nozei sites.

There are two things to note about this change: first, you should make your donations as soon as possible during this year so you can maximize your earning potential. Sites often offer up to 20-30% back, so you should not miss out on the opportunity while it still exists.

Second, you will still be able to use a credit card when making donations. You can earn lots of points simply by paying with your favorite card, and this will not change, luckily!

What Types of Gifts Can I Receive in Return for My Donation?

Municipalities offer a wide variety of thank-you gifts, including:

• Premium Meat: High-grade wagyu beef, premium pork, and local poultry
• Fresh Seafood: Seasonal catches, crab, uni, and other marine delicacies
• Agricultural Products: Rice, fruits, vegetables, and specialty crops
• Local Specialties: Regional sake, craft products, and traditional crafts
• Experience Vouchers: Hotel stays, hot spring visits, and tourist activities

How Do I Use My Donations to Reduce My Taxes?

The "One-Stop" system (ワンストップ特例制度) is the simplest way to claim your tax deductions. If you make all your donations through the One-Stop system and don't file a tax return for other reasons, your employer can handle the deductions through your year-end tax adjustment. Simply submit the required One-Stop forms to each municipality you donate to by January 10th of the following year.

If you file a tax return (確定申告), you'll need to include your Furusato Nozei donations on your tax return forms. Keep all donation receipts and submit them with your tax return. The tax office will process your refund, which typically arrives a few months after filing.

For either method, remember that the first ¥2,000 of your total donations is not tax-deductible. This is considered your "contribution" to the system.

Frequently Asked Questions