【2025】Furusato Nozei Guide for Foreigners: Lower Residence Tax & Get Rakuten Points
CEO / Native Japanese Expert
Updated on: December 8, 2025
A complete guide on how foreigners can do 'Furusato Nozei'. Use Rakuten to effectively pay just ¥2,000 to lower your Residence Tax and get rice or meat. Covers visa impact and the Dec 31st deadline.
"Can't my Residence Tax be any cheaper next year?" "My Japanese colleagues are talking about getting 'free rice'... what is that?"
If you work in Japan and pay taxes, you are losing tens of thousands of yen every year by NOT doing 'Furusato Nozei'.
Furusato Nozei (Hometown Tax Donation) is a government-approved system where you can receive high-quality meat, rice, travel vouchers, and more for an effective cost of just ¥2,000 . Yes, foreign residents can use it too, as long as you meet the requirements.
However, if you miss the December 31st deadline, your chance for this year's tax deduction (saving money) disappears.
In this article, I will explain step-by-step how foreign residents can successfully do Furusato Nozei without mistakes and double-dip on Rakuten Points and Return Gifts .
What is "Furusato Nozei" Anyway?
Although "Furusato Nozei" has the word "Donation" in it, it is effectively "Pre-paying your Residence Tax" .
Instead of paying all your Residence Tax to the city where you currently live, you "donate" (pre-pay) a portion of it to a countryside municipality of your choice. This gives you the following benefits:
- Lower Taxes: The amount you donated, minus ¥2,000, is deducted from next year's Residence Tax.
- Receive Gifts: You receive local specialty products (Wagyu beef, rice, fruits, etc.) worth about 30% of your donation amount delivered to your home.
Concrete Calculation Example
For example, if you donate ¥50,000 :
- Your Out-of-Pocket Cost: ¥2,000
- Next Year's Residence Tax: Reduced by ¥48,000
- What You Get: About ¥15,000 worth of Wagyu beef or Rice
In other words, you get ¥15,000 worth of food for just ¥2,000 . There is literally no reason not to do it.
Can Foreigners Do It? Does It Affect Visas?
The conclusion is: Anyone who has a Residence Card, earns income in Japan, and pays Residence Tax can do it.
- Visa Impact: None. In fact, it serves as proof that you understand taxes and are paying them correctly, so it won't negatively affect Permanent Residency applications.
- Leaving Japan? If you are not in Japan on January 1st of the following year (i.e., you remove your residency and leave), you are not subject to Residence Tax for the next year, so you may not receive the tax deduction benefit. Please be careful if you plan to return home permanently soon.
Check out Essential Guide for Pension Refunds When Leaving Japan to confirm your money plan upon departure.
Step 1: Know Your Limit (How Much Can You Donate?)
The most important thing in Furusato Nozei is knowing "Your Limit" . Depending on your annual income and family structure, there is a cap on how much tax can be deducted. If you donate more than this, the excess is just a pure donation (a loss for you).
Quick Reference (Single / No Dependents)
| Your Annual Income | Donation Limit (Estimate) |
|---|---|
| ¥3.0 Million | Approx. ¥28,000 |
| ¥4.0 Million | Approx. ¥42,000 |
| ¥5.0 Million | Approx. ¥61,000 |
| ¥6.0 Million | Approx. ¥77,000 |
For the exact amount, please check using a simulator. It goes smoothly if you have your Withholding Tax Slip (Gensen Choshu Hyo) handy.
Step 2: "Shop" on Rakuten Furusato Nozei
There are several sites where you can donate, but "Rakuten Furusato Nozei" is the only real choice . The reason is the insanely high "Point Back" rate .
Why Use Rakuten: Points Cover the "¥2,000 Cost" and More
On Rakuten, you get "Rakuten Points" even on the donation amount. For example, if you donate ¥50,000 during the "Shopping Marathon" or "Super Sale" period and get a 10% point return:
- Donation Amount: ¥50,000
- Points Received: 5,000 Points
- Your Cost: -¥2,000
- Profit: 3,000 Points + Return Gifts
Not only is it practically free, but you actually make a profit in points . This is the power of the "Rakuten Economic Zone".
If you don't have a Rakuten Card yet, make sure to create one in time for the campaign. It has no annual fee.
Practical Guide to Applying for a Rakuten Card: English Input Tips & How to Avoid Rejection
If you want to earn even more points, refer to the article below. Is the Rakuten Ecosystem Dead? 5 New Rules to Earn Points Smartly in Japan
[IMPORTANT] The "Name Rule" Foreigners Must Strictly Follow
Here is the point where many foreigners fail.
Your "Rakuten Account Name" and your "Residence Card Name" must match EXACTLY, character for character.
- OK:
- Residence Card:
SMITH JOHN - Rakuten Order Name:
SMITH JOHN
- Residence Card:
- NG (This will fail):
- Residence Card:
SMITH JOHN - Rakuten Order Name:
John Smith(Order is reversed) - Rakuten Order Name:
スミス ジョン(Katakana)
- Residence Card:
If the names do not match, there is a risk that the tax deduction process will be invalid. Please make sure to verify that the "Orderer Information" (注文者情報) on the order screen matches your Residence Card exactly. The same applies if you have a middle name.
Step 3: Apply for the "One-Stop Exception System"
Once you finish donating (shopping), there is one last procedure. If you forget this, your taxes will NOT be reduced.
For company employees, I recommend the "One-Stop Exception System" (One-Stop Tokurei Seido) . It allows you to complete the process just by mailing a simple document, without having to file a full Tax Return (Kakutei Shinkoku).
Conditions for One-Stop
- Donated to 5 municipalities or fewer.
- You are a salary earner who does not originally need to file a tax return.
Watch the Deadline!
The application form must arrive at the municipality by January 10th of the following year . If you donate at the end of December, waiting for the paperwork to be mailed to you might be too late. In that case, choose a municipality that supports "Online Application" (like the IAM app) or download and print the application form yourself and send it via express mail.
Recommended Return Gifts List: To Lower Living Costs!
For those who don't know what to choose, here are recommended categories focused on practical value. Especially if you live alone in an urban area like Tokyo, the savings on food costs are massive.
As explained in Cost of Living in Tokyo: Monthly Breakdown, reducing fixed costs is key.
1. Rice (O-kome)
This has the best cost-performance. For a donation of ¥10,000 to ¥15,000, you get 10kg to 15kg of rice delivered. It saves you the trouble of carrying heavy rice home from the supermarket.
2. Daily Goods
Toilet paper and tissue paper. These don't rot and you will definitely use them. "96 rolls of toilet paper for a ¥10,000 donation" is a popular choice.
3. A Little Luxury: Meat & Fruits
Enjoying high-grade Wagyu beef or seasonal fruits (like Shine Muscat grapes) that you wouldn't normally buy at the supermarket is the real thrill of Furusato Nozei.
FAQ
Q. Can I apply on December 31st?
A. You can, but it's risky. The "Payment" must be completed by 23
on December 31st. Credit card payments are reflected instantly, but to avoid risks like connection errors, please try to finish by around December 25th at the latest.Q. What if I move?
A. You need to process a change of address. If you move after making a donation, you must submit a Change of Address Notification (Jusho Henko Todoke) to the municipality you donated to. If you forget this, the Residence Tax notification won't reach your new address, and the deduction might fail.
Summary: Do It By December 31st!
Furusato Nozei is one of the few "guaranteed profitable systems" available to us residents in Japan.
- Check your limit with the simulator
- Donate (Shop) using your Rakuten Card
- Confirm your name matches your Residence Card exactly
- Mail the One-Stop Application Form by January 10th
With just these 4 steps, your taxes next year will be cheaper, and you can enjoy delicious Japanese food. Start by checking how much you can donate with the simulator!
Check Rakuten Furusato Nozei Now
Until Dec 31st! Point UP Campaign in progress
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※ The information in this article is accurate as of the time of writing. Laws and regulations may change, so please always check official sources for the latest information. We assume no liability for any damages resulting from the content of this article.
