Tax Deduction

This article contains affiliate links. Furusato Nozei (Hometown Tax) Simulator [2026] Enter your annual income and household situation to automatically calculate your Furusato Nozei deduction ceiling and net tax savings. Annual Income (gross, in 10,000 JPY) 2M JPY5M JPY25M JPY Household Situation Single or dual-income couple (no spousal deduction) Married couple (spousal deduction applies) Married + 1 child (high school age) Married + 2 children (university + high school) Housing Loan Tax Credit (Jutaku Loan Kojo) None Yes (100,000 JPY/yr) Yes (200,000 JPY/yr) Yes (300,000 JPY/yr) Deduction Ceiling by Income Bracket Gift Return Value Estimates How Furusato Nozei Works Furusato Nozei (literally “hometown tax donation”) lets you donate to any Japanese municipality of your choice. The donated amount minus 2,000 JPY is deducted from your income tax and resident tax. On top of that, you receive a local gift (return item) worth roughly 30% of your donation — making it a highly efficient way to reduce taxes while supporting regional communities. ...

Japan’s individual-defined-contribution pension plan — called iDeCo (individual-type Defined Contribution pension, or 個人型確定拠出年金) — is one of the most powerful tax-reduction tools available to anyone earning income in Japan. Unlike an ISA or a standard brokerage account, every yen you contribute to iDeCo comes straight off your taxable income with no cap on the deduction rate. If you have never run an iDeCo tax deduction calculator, the numbers can surprise you. ...