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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.
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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.
Staying Within Your Deduction Ceiling
Any donation above your ceiling is not deductible and becomes a pure out-of-pocket expense. Use this simulator to confirm your ceiling before making any donations.
The Process Step by Step
- Choose a municipality — typically done by browsing gift catalogues on Furusato Nozei portals
- Complete the donation — apply through a dedicated platform for convenience
- Receive your gift and receipt — the municipality sends both
- Claim the deduction — via your annual tax return, or via the One-Stop Special Exception (for up to 5 municipalities, no tax return needed)
Related Tools
- NISA Investment Simulator — Simulate tax-free NISA growth
- Compound Interest Calculator — See the long-term power of compounding
- Percentage Calculator — Calculate tax rates and discount amounts
