🎁 Furusato Tax Portals: Ministry Publishes Fee-Cut Replies

❓ What was announced

On September 11, 2026, Japan's Ministry of Internal Affairs and Communications (MIC) published the replies it received from furusato nozei portal site operators after asking them to lower the fees they charge. The replies themselves are attached to the press release as a PDF. Furusato nozei lets you donate to any local government in Japan; the amount above your own ¥2,000 share is deducted from your income tax and resident tax. Most donations go through private portal sites, and municipalities pay those operators a commission for listing and payment processing. That commission counts as part of the "cost of soliciting donations", together with the price and shipping of thank-you gifts, and MIC's rules cap total solicitation costs at 50% of the donation amount. So when the commission falls, a larger share of the same donation stays with the municipality and can go to local services instead. This publication is a set of responses to a request, not a rule change. Nothing about how you apply for a donation or how the deduction is calculated changes because of it.

👥 Who is affected?

• ●Foreign residents in Japan who earn income here and pay income tax and resident tax
• ●Anyone already donating through a furusato nozei portal site
• ●Anyone considering starting furusato nozei
• ●Municipalities receiving donations and the portal site operators themselves

🌏 Impact on foreign residents

Furusato nozei is not restricted by nationality. Whatever your status of residence, you can use it as long as you pay Japanese income tax and resident tax. The whole application is done on the portal site, and you claim the deduction using the receipt (or the one-stop application form) sent to you afterwards. This announcement does not change what a donor pays. Your own share stays at ¥2,000, and your deduction limit still depends on your income and family situation. What may change is how much of your donation stays with the municipality: lower commissions mean more of the same ¥10,000 goes to local projects. One point deserves care: resident tax is levied on people who have an address in Japan as of January 1, based on the previous year's income. If you plan to leave Japan during the year, you may not be assessed resident tax next fiscal year and therefore may not receive the resident-tax portion of the deduction. Check whether you will still be living in Japan next year before deciding how much to donate.