Furusato Nozei for Foreign Residents in Japan

If you are a foreign national living in Japan and paying taxes here, you are likely eligible for the furusato nozei (hometown tax) program. Many foreign residents assume this program is only for Japanese citizens, but that is a common misconception. Eligibility is based on tax residency, not nationality. This guide walks through everything a foreign resident needs to know — from eligibility and My Number requirements, to how to apply and claim your deduction.

Are Foreigners Eligible for Furusato Nozei?

Yes — foreigners are fully eligible for furusato nozei as long as they meet the tax residency requirements. The program is open to anyone who pays resident tax (住民税, jūminzei) in Japan, regardless of nationality. This includes permanent residents, long-term visa holders (work visas, spousal visas, etc.), and others who have lived in Japan for more than one year.

Tax Residency is What Matters

Furusato nozei works by redirecting a portion of the taxes you already owe. To benefit from it, you must:

Be registered as a resident in Japan (jūminhyō / 住民票)
Pay resident tax (住民税) in Japan
Have taxable income in Japan

If you arrived in Japan mid-year, you may not owe resident tax for that year (since it is calculated on the previous year's income). In that case, furusato nozei would have limited benefit in your first year. However, from your second year onward, you will typically be fully eligible.

Short-term visa holders (tourist, business, student short-stay) who are not resident-registered are generally not eligible because they do not pay resident tax.

My Number (Individual Number) Requirement

All furusato nozei applications require your My Number (マイナンバー / Individual Number). This is a 12-digit number assigned to all residents of Japan, including foreign nationals. You would have received it when you registered your address at your local municipal office.

You will need your My Number card (マイナンバーカード) or your notification card (通知カード) when submitting paperwork. For the one-stop exception system, you typically need to provide a copy of your My Number card or notification card along with a photo ID. If you have not yet received your My Number card, visit your local municipal office (市区町村役場) to apply for one.

How Much Can You Donate? Understanding Your Limit

The key concept in furusato nozei is the deduction limit (控除上限額). This is the maximum amount you can donate before you start paying out of pocket beyond the standard ¥2,000 self-burden.

The deduction limit depends primarily on your annual income, the number of dependents you have, and other deductions you may be claiming (such as a housing loan tax credit). As a general guide:

Annual income ¥3,000,000: limit approximately ¥28,000
Annual income ¥5,000,000 (single): limit approximately ¥61,000
Annual income ¥7,000,000 (single): limit approximately ¥108,000
Annual income ¥10,000,000 (single): limit approximately ¥180,000

These are approximate figures. Your actual limit depends on your specific situation. Use the calculate your deduction limit tool in FuruMap to get a personalized estimate based on your income and family situation.

Important for foreign residents: If your employer provides company housing (社宅) as a benefit, or if you have income from overseas, your taxable income calculation may differ from a standard salary worker. Consult a tax accountant (税理士) if your income situation is complex.

How to Apply: Step-by-Step

Step 1: Calculate Your Deduction Limit

Before donating, use an online calculator to estimate how much you can donate. Enter your annual gross salary, number of dependents, and any applicable deductions. This prevents you from over-donating, which results in costs that are not covered by the tax deduction.

Step 2: Choose Gifts and Donate

Browse furusato nozei portals to find return gifts (返礼品) you want. Major portals include:

Rakuten Furusato Nozei — earn Rakuten points on donations; great if you already use Rakuten
Satofull (さとふる) — known for fast delivery of return gifts
Furusato Choice (ふるさとチョイス) — largest selection of municipalities and gifts

Select a gift and complete the donation. You will be asked to enter your address (in Japanese) and My Number. After payment, the municipality will send you a donation receipt (寄付受領証明書) by mail. Keep this document — you will need it for your tax filing.

Step 3: File Your Tax Paperwork

After donating, you must complete either the one-stop exception procedure or a tax return to claim your deduction. For most salaried workers who donated to 5 or fewer municipalities, the one-stop exception is the easier route. See our guide on One-Stop Exception vs Tax Return for full details.

One-Stop Exception vs Tax Return Filing

There are two ways to claim your furusato nozei deduction:

One-Stop Exception (ワンストップ特例): Available if you are a salaried employee, do not normally file a tax return, and donated to 5 or fewer municipalities in the calendar year. You submit a simple form to each municipality by January 10 of the following year. No tax return needed.
Tax Return (確定申告): Required if you are self-employed, a freelancer, or donated to 6+ municipalities. You file between February 16 and March 15 using the National Tax Agency (NTA) portal or paper forms.

Foreign residents on work visas who receive a standard salary and have their taxes handled by an employer can generally use the one-stop exception, provided they meet the conditions above. The paperwork is mostly in Japanese, but the forms are straightforward.

Common Mistakes Foreign Residents Make

Having helped many foreign residents understand furusato nozei, we have identified these recurring mistakes:

1. Donating in the first year without checking eligibility

Resident tax is based on the previous year's income. If you moved to Japan in 2024, you generally owe no resident tax in 2024. Donating that year means little to no deduction benefit. Wait until you have been in Japan for at least one full calendar year before participating.

2. Exceeding the deduction limit

Many first-timers use an inaccurate estimate and donate too much. The amount over your limit is simply a donation with no tax benefit. Always calculate your limit carefully before donating, accounting for your actual net income after social insurance deductions.

3. Missing the one-stop exception deadline (January 10)

The one-stop application must physically arrive at each municipality by January 10. Many people forget to mail the forms in December or early January, missing the deadline. If you miss it, you will need to file a tax return instead — which is more work but still lets you claim the deduction.

4. Providing an address in romaji or English

Japanese municipalities require your address in Japanese characters (kanji/kana). If you submit forms or orders with an English address, the documentation may be rejected or the return gift may not be delivered. Use your address as written on your jūminhyō (resident card).

5. Forgetting to keep the receipt (寄付受領証明書)

If you plan to file a tax return, you need the donation receipt issued by each municipality. This comes by mail after your donation. Do not discard it. If you are using the one-stop exception, you do not technically need the receipt, but it is still good practice to keep it as proof of donation.

6. Confusing calendar year with fiscal year

Furusato nozei runs on the Japanese calendar year (January 1 to December 31). Donations made by December 31 are eligible for that year's tax deduction. The tax filing itself happens early the following year. This confuses some expats who come from countries with different fiscal years.

English-Language Resources

While furusato nozei portals are primarily in Japanese, here are some resources that can help:

NTA (National Tax Agency) English site: The NTA provides English explanations of Japanese tax deductions at nta.go.jp/english
SOUMU (Ministry of Internal Affairs) English pages: Official explanation of the furusato nozei system in English at the Ministry of Internal Affairs website.
FuruMap: This app lets you track donations, calculate deduction limits, and manage plans across years — with an English-friendly interface.

For more on choosing return gifts, see our Best Furusato Nozei Gifts guide.