On-site tools
Practical tools for Chinese in Japan: tax calculations, high-skill visa scoring, planning support.
Furusato Nozei Simulator
Calculate your maximum Hometown Tax donation cap with only ¥2,000 out-of-pocket, net savings, and gift value under Japanese tax law.
Furusato Nozei Simulator
Understanding Furusato Nozei and Deduction Limits
What is Furusato Nozei and Why is Self-Burden Only ¥2,000?
Furusato Nozei (Hometown Tax) is a tax credit donation program in Japan. By donating to regional prefectures or municipalities, any amount exceeding ¥2,000 is fully deducted from your national income tax and local resident tax.
Additionally, recipient municipalities reward donors with high-quality local specialities (wagyu beef, seafood, fruits, travel vouchers) valued at up to 30% of the donation amount, providing substantial economic benefits.
How the Deduction Limit is Calculated
Your maximum donation cap depends on your taxable income, family structure, resident income tax, and marginal national income tax rate. The official formula established by Japan's Ministry of Internal Affairs and Communications (MIC) is: Cap = (Resident Income Tax × 20%) / (90% - Marginal Income Tax Rate × 1.021) + ¥2,000.
Our simulator implements this formula accurately, factoring in iDeCo contributions and housing loan credits to help you plan without exceeding the cap.
Filing: One-Stop Procedure vs. Final Tax Return
Salaried workers donating to 5 or fewer municipalities who do not otherwise file tax returns can use the One-Stop Special Procedure (ワンストップ特例). Simply mail the application form to the municipality, and the entire deduction is applied to next year's resident tax automatically.
If donating to 6 or more municipalities, or if filing a tax return (for medical expenses, mortgage credits in year 1, etc.), all donations must be declared on your Kakutei Shinkoku.
Frequently asked questions
Why is the self-burden only ¥2,000?
When you donate to a municipality, everything above ¥2,000 is deducted from your income tax and from resident tax levied from June of the following year. If you stay within your deduction limit, your real cost is that ¥2,000.
How is the deduction limit calculated?
It is not a fixed amount; it depends on your resident income tax and marginal income tax rate. The Ministry of Internal Affairs formula is: limit = (resident income tax × 20%) / (90% − marginal income tax rate × 1.021) + ¥2,000. This calculator applies it, including the reconstruction surtax, and accounts for dependants, iDeCo and housing loan credits.
Is there a cap on the value of return gifts?
Yes. Under the Ministry's rules the procurement cost of a return gift cannot exceed 30% of the donation amount.
When can I use the One-Stop Special Procedure instead of filing a tax return?
If you are a salaried worker who does not otherwise file a return and donate to 5 or fewer municipalities in a year, you can mail the application to each municipality and the deduction is applied to next year's resident tax from June. If you donate to 6 or more, or you file for another reason such as a first-year mortgage credit or medical expenses, declare the donations on your return.
Can I treat the estimated limit as final?
No. It is an estimate for planning; your actual limit depends on your withholding slip and the municipal tax assessment notice.
This calculator provides estimates for tax planning purposes. Final deductions depend on your year-end withholding slip (源泉徴収票) and municipal tax assessment notices.