I don't think there are people who like taxes in the world, whereas "Furusato Nozei" (ふるさと納税, Hometown Tax Donation) might be the only exception.
The word "tax" tends to cause bodily rejection, but "Furusato Nozei" is a "donation" to each prefecture and municipality, and if you donate a certain amount, you will receive a reward in return. Rather than causing rejection, it is a system that pleases the whole body at the cellular level.
If you make good use of it, you can even get local specialties from all over the country at a bargain price!
What is such a profitable system... If you ask me nicely, then the mercy of the world shall answer kindly!
* By purchasing or reserving products introduced in this article, a portion of the sales may be returned to FUN! JAPAN.
【Introduction】What is "Furusato Nozei"?
"Furusato Nozei" is a mechanism that contributes to hometowns ("Furusato" in Japanese) through the tax system. If you donate to the applicable local government, in principle, the entire amount, excluding the processing fee of 2,000 yen, will be subject to tax deduction (* 1). There is an upper limit on the amount of deduction depending on income and family structure, but if you look the other way around, you can get special products and rewards for only 2,000 yen if your donation does not exceed the upper limit.
* 1: The amount obtained by deducting 2,000 yen from the total amount paid to the local government as Furusato Nozei is used for the deduction of the income tax and inhabitant tax. For example, if you pay 20,000 yen as Furusato Nozei, 18,000 yen will be used for deduction.
【Reward items】 A Lot of Coveted Gourmets! There are even Japanese Black Wagyu Beef and Echizen Crabs!
If it is a local government applicable for "Furusato Nozei", the system will be applied no matter which one you donate to, so most people choose based on the prefecture they want to support and the gifts they want in return. It is no exaggeration to say that one of the factors that makes "Furusato Nozei" more exciting year by year is the lineup of overly luxurious reward items. Wagyu beef, crabs, sea urchins, fruits...so many thing that can makes you drool just by imagining!
| Municipalities | Details of Reward Items | Quantity | Donation amount | Product page |
| Betsukai Town, Hokkaido | Japanese Black Beef "Betsukai Wagyu" loin steak | 250g x 2 packs | 26,000 yen | Furusato Premium |
| Hekinan City, Aichi Prefecture | "Sanshu Aomi Pork" Loin & Pork Belly Set | Total 2kg | 24,000 yen | Furusato Premium |
| Oarai Town, Ibaraki Prefecture | Frozen fresh Japanese spiny lobster | 2 tails, 1kg | 27,000 yen | Furusato Premium |
| Marugame City, Kagawa Prefecture | Domestically produced grilled eel | Set of 2 with sauce | 30,000 yen | Furusato Premium |
| Oga City, Akita Prefecture | Frozen red king crab | approx. 550g x 2 crabs | 24,500 yen | Furusato Honpo |
| Mombetsu City, Hokkaido | Frozen sea urchin | 100g | 18,000 yen | Furusato Honpo |
| Aridagawa Town, Wakayama Prefecture | Freshly picked Shine Muscat grapes delivered directly from farmers) | approx. 2kg | 20,000 yen | Furusato Honpo |
| Sakura City, Tochigi Prefecture | Tochiaika and Skyberry Tasting Set | 290g × 4-pack set | 12,000 yen | Furusato Honpo |
* Examples of reward items as of Feb 2025, according to the author's research
As of 2023, the number of local governments designated as targets of the hometown tax system is 1,785. According to the "Current Status Survey Results of Hometown Tax" published by the Ministry of Internal Affairs and Communications in 2024, the amount of hometown tax received in fiscal year 2023 (*2) was approximately 1.1175 trillion yen, the highest amount ever recorded. When compared to the annual amount received in fiscal year 2008 (*3), when the "Hometown Tax" system was launched (approximately 8.14 billion yen), the enthusiasm in recent years can be seen.
*2: April 1, 2023 to March 31, 2024
*3: April 1, 2008 to March 31, 2009
[Hometown Tax Donation Process] From application to receiving the gift
Furusato Nozei is a win-win system that allows you to contribute to regional revitalization while also receiving delicious local products in return. To apply, it is recommended to use platforms that accept donations, such as Furunavi, Furusato Choice, and Rakuten Furusato Nozei. Not only do these platforms allow you to receive thank-you gifts from municipalities, but they also offer opportunities to earn points and participate in special promotions (4).
Now, as a heavy user of Furusato Nozei, I will share my personal experience with the donation process.
*4: In June 2024, a review of the Furusato Nozei system was announced to ensure its proper operation. As part of this revision, the Ministry of Internal Affairs and Communications has decided to prohibit donation solicitations through intermediary sites that grant users points, effective October 1, 2025.
Step 1: Calculate your deduction limit
The deduction limit for Furusato Nozei varies based on several factors, so it's important to determine your own limit first.
If you’re not comfortable with detailed calculations, you can conveniently use the "Deduction Limit Simulator" available on Furusato Nozei websites!
Annual income（Yearly salary）
The higher your income, the higher your Furusato Nozei deduction limit.
Marital status
If you are claiming a spouse deduction, your Furusato Nozei deduction limit may be lower.
Number of Dependents
The more dependents you have, the higher your income tax and resident tax deductions, which may result in a lower Furusato Nozei deduction limit.
Amount of Social Insurance Contributions
Higher social insurance contributions (such as health insurance and pension premiums) reduce your taxable income, which in turn lowers your Furusato Nozei deduction limit.
Estimated Deduction Limits (For Single or Dual-Income Households)
| Annual income | Estimated deductible limit |
| 3 million yen | Approximately 27,000 yen |
| 5 million yen | Approximately 60,000 yen |
| 7 million yen | Approximately 107,000 yen |
| 10 million yen | Approximately 172,000 yen |
※Please note that the deductible limit may be lower if you have a spouse or dependents.
Step2: Search for Where to Donate
First, find the local government you want to donate or support from the donation page of each Furusato Nozei site. There are too many choices and it becomes quite a daily occurrence that you can't decide which one to choose.
Step3: Apply for Donation
Fill in the necessary items such as the delivery address of the gift and the purpose of the donation (* 5) when making a donation.
* 5: Varies depending on the local government, such as support for disaster area / disaster relief, agricultural promotion, promotion of green area, and traffic safety education. You can specify how to use the donation and reflect your intention in the donation.
Step 4: Receive your reward and donation receipt.
When you receive the "thank-you gift" and the "donation receipt certificate" (*6) from the municipality you donated to, be sure to keep them safely.
There are two ways to claim the tax deduction: "tax return (kakutei shinkoku)" and "one-stop special exemption application". Choose the method that best suits your situation and proceed with the necessary steps.
*6: The delivery timing varies depending on the municipality, and the thank-you gift and donation receipt certificate may be sent separately.
| Category | Tax return (Kakutei shinkoku) | One-stop special exemption application |
| Application period | Usually from February 16 to March 15 of the following year | until January 10th of the following year |
| Application procedure | Prepare a tax return document and submit it to the tax office. (You can also use e-Tax.) | Apply online or by mail |
| Taxes to be deducted | Income tax and resident tax | Resident tax only |
| Number of municipalities donations can be made | No limit | Limited to five municipalities per year |
| Suitable for | Frequent donors Those who already need to file a tax return | Those who make few donations and don't file annual tax returns |
Step5: Open the Reward Items!
Now all you have to do is wait for the reward items to arrive!
In 2021, I chose Gamagori City of Aichi Prefecture and Saito City of Miyazaki Prefecture. The oversized mukiebi (peeled prawns) that can't fit in the photo, and the pork that is close to 4 kg, barely fits in my refrigerator.
(The total donation amount is 25,000 yen, and considering the deduction of the tax which I have to pay regardless, the actual cost is 4,000 yen!)
【Extra】Donors Becomeing the Owner of a Castle!?
The image of "reward items = food" may be strong, but the gifts are not limited to gourmet foods only, and the range of varieties is amazing!
For example, Sanjo City, Niigata Prefecture, offers products from the local outdoor manufacturer Snow Peak, and Nasu Town, Tochigi Prefecture, offers accommodation vouchers that can be used from the day of receiving at inns and hotels in the town as their reward items.
More recently, the thing that has become a hot topic among "Furusato Nozei enthusiasts" is the castle. In December 2021, Himeji City, Hyogo Prefecture, announced that it would make the "castle owner" experience of Himeji Castle, a World Heritage Site, as one of the rewards. This project, which rewards the Himeji Castle New Castle Owner Experience event to those who donated 30 million yen or more (!) as a Furusato Nozei Premium Experience-Type reward item, attracted attention from all over Japan that the "New Castle Owner" will be decided for Himeji Castle for the first time in 153 years. It is said that the "New Castle Owner" was welcomed with exceptional hospitality, in which the donor was regarded as the new castle owner and he was guided to Himeji Castle and also presented the right to enter Himeji Castle permanently.
If FUN! JAPAN donates on your behalf, our readers could become the next Himeji Castle owner too!? (laugh)
👉Belmont Camping Cookware Set from Sanjo City, Niigata Prefecture (available on Furusato Lab)
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