How the limit is worked out
Furusato nozei (hometown tax donation) lets you donate to any Japanese municipality and get back everything above ¥2,000 as income tax and resident tax deductions — up to a limit. That limit comes from the formula published by the Ministry of Internal Affairs and Communications.
Limit = resident tax income levy × 20% ÷ (90% − income tax rate × 1.021) + ¥2,000
- Resident tax income levy: 10% of your taxable income for resident tax, minus the adjustment credit. It is the figure that sets most of the limit.
- Income tax rate: your marginal rate (5% to 45%). The 1.021 adds the 2.1% special income tax for reconstruction.
- 2026 tax rules: uses the higher basic deduction (up to ¥1.04M) and the ¥740,000 minimum employment income deduction for 2026 and 2027 income.
Tips
- Keep a margin of 10–20% below the result if your income may change, because anything above the limit is not refunded.
- With the one-stop special exception (up to 5 municipalities, no tax return), the whole deduction comes off next year's resident tax.
- Housing loan credits, medical expense deductions and side income all lower the limit. Use your municipality's notice or a tax return for an exact figure.
- Donations count by the calendar year they are paid in (January to December).
Standards and sources
- Tax deductions for furusato nozei · Ministry of Internal Affairs and Communications
- FY2026 local tax reform (¥1.93M cap on the special deduction) · Ministry of Internal Affairs and Communications
- No.1199 Basic deduction · National Tax Agency
- No.1410 Employment income deduction · National Tax Agency
- No.2260 Income tax rates · National Tax Agency
Last reviewed October 15, 2026
Frequently asked questions
What happens if I donate more than the limit?
Everything above the limit is a real donation: it is not deducted from your taxes, so your own cost goes above ¥2,000.
Do I need to file a tax return?
Not if you are a salaried employee who donates to five or fewer municipalities and applies for the one-stop special exception. Otherwise, file a tax return by March 15 of the next year.
Why is my limit lower than last year?
Japan raised the income tax basic deduction for 2025–2027, which lowers some people's income tax rate. A lower rate makes the formula's divisor larger, so the limit can drop slightly even on the same salary.
What changes in 2027?
From 2027 donations, the special part of the resident tax deduction is capped at ¥1.93 million. It only affects very high incomes, around ¥100 million in salary or more.
Is my data saved?
No. The calculation runs only in your browser, and nothing is sent anywhere.