EN 
JA 
Hello!
In this article, we will introduce the "Hometown Tax Payment System" which is becoming more and more popular every year.With the latest information for 2025We will explain it in an easy-to-understand manner.
"I don't really understand how the system works."
"I'm worried about whether the deductions are being properly made..."
For those of you who are in this situation, we will carefully introduce the following four points!
1. First of all, what is "Hometown Tax"?
What is hometown tax?A system where you can make a donation to the local government of your choice and receive a tax deductionis.
Features include:
- Actual self-pay amount is 2,000 yenYou will receive luxurious gifts (meat, rice, daily necessities, etc.)
- The deduction is:Part of income tax and resident tax
- There is a "one-stop special system" that is easy for salaried workers to use (no need to file a tax return)
For example, if you donate 30,000 yen, within the income limit,The 28,000 yen will be deducted from your taxes the following year, meaning you will only have to pay 2,000 yen out of pocket.
② [2025 Edition] Changes to Hometown Tax Payments
There will be some changes to the operation of the system in 2025. The main points are summarized below.
❖ [Amendment 1] Strengthening cost transparency for return gifts
Until now, local governments have roughly determined the cost of return gifts as long as they are locally produced and locally processed. However, from 2025 onwards,Strengthened obligation to disclose the cost rate of return gifts and to report on procurement sourcesIt has been done.
→ The purpose is to prevent excessive "competition for high cashback rates."
❖ [Amendment 2] Clarification of self-payment amounts exceeding 2,000 yen
The method for calculating tax credits has been clarified, and the "effective burden of 2,000 yen" rule has been reaffirmed.
→ There have been cases where some return gifts were fraudulently exceeding the deduction amount, so the rules are being tightened.
❖ [Amendment 3] The application deadline for the One-Stop Special Provisions will be changed (advanced)
From 2025,Application deadline is January 10th of the following year → January 5thhas been shortened to !
If you are donating at the end of the year,Hurry up and submit your documents.
③ Is your hometown tax payment reflected properly? How to read your resident tax notice
By looking at the "Resident Tax Assessment Notice" (often distributed by your company) that arrives around June every year,You can check whether your hometown tax donation has been reflected.
Points to check:
- Pay attention to the "summary" and "tax credit" columns.
- It is OK as long as it includes phrases such as "donation tax deduction" or "hometown tax deduction amount"
- In the case of the one-stop special exemption → Full deduction from resident tax (over 2,000 yen)
✏️ Additional notes:
The amount deducted from your income tax (if you have filed a tax return) will be transferred to you as a refund in February or March of the following year. This is separate from your resident tax, so be careful not to confuse the two!
④ How to find out your hometown tax donation "limit"
Be careful, if you donate too much, your out-of-pocket expenses will exceed 2,000 yen!
limit amountVaries depending on annual income, family composition, etc.
Rough guideline (2025 version, dual-income couple, no children)
| annual income | Upper limit guideline (yen) |
|---|---|
| 3 million yen | Approximately 28,000 yen |
| 5 million yen | Approximately 61,000 yen |
| 7 million yen | Approximately 108,000 yen |
| 10 million yen | Approximately 165,000 yen |
How to know exactly
- On hometown tax donation portal sites (Rakuten Hometown Tax Donation, Satofull, etc.)
👉 Use the **Deduction Simulator**https://furusato-nouzei.event.rakuten.co.jp/mypage/deductions/ - Look at your year-end tax adjustment and withholding slip and enter the amount after salary income deductions, etc.
summary
Hometown tax payment isIf used wisely, you can enjoy the double benefit of tax savings and great value gifts.The system will continue to evolve in 2025, but the basic flow will remain the same.
✅ Plan your donations
✅ Simulate the limit in advance
✅ Check the deductions on your resident tax notice
✅ Pay attention to the changes (application deadlines, etc.)!
Let's enjoy the benefits of hometown tax donations while supporting our local community this year too!