Furusato nozei still works the same way for you in 2026. You still pay ¥2,000, get a return gift, and receive the rest back as a tax deduction. What changed is how portals and municipalities run the system. Points ended in October 2025, and stricter rules started in October 2026. A new cap starts in 2027, but it affects only very high earners.
Key facts (as of October 2026)
- October 1, 2025: Portals can no longer give points for donations.
- October 1, 2026: Stricter rules for municipalities on costs, local products, and disclosure.
- Donations from 2027: The special part of the resident tax deduction is capped at ¥1.93 million. You reach it at a salary of about ¥100 million.
- Unchanged: The ¥2,000 cost, the one-stop exception, the 5-municipality rule, and the 30% gift limit.
Furusato nozei changes, 2015 to 2027
Unchanged: the ¥2,000 cost, the one-stop exception, the 5-municipality rule, and the 30% gift limit.
2015
Limit roughly doubled, one-stop exception starts
Why most salaried people don’t need a tax return.
2019
Designation system
Gifts must be local products worth 30% or less of the donation.
October 1, 2025
No more portal points
Card points from your card company still apply.
October 1, 2026
Stricter rules for municipalities
Costs, local products, and disclosure. Some gifts may change or disappear.
Donations from 2027
¥1.93 million cap on the special part
Reached at a salary of about ¥100 million. Most people are not affected.
Source: Ministry of Internal Affairs and Communications (MIC). As of October 2026.
What changed, at a glance?
Here are the changes that matter for donors, in order. The newest are at the bottom.
| When | What changed | Does it affect you? |
|---|---|---|
| 2015 | The full-deduction limit roughly doubled, and the one-stop exception started (MIC) | Yes. This is why most salaried people don’t need a tax return |
| 2019 | The designation system started. Gifts must be local products worth 30% or less of the donation (MIC) | Indirectly. It shapes which gifts exist |
| October 1, 2025 | Portals that give points for donations were banned (MIC) | Yes, if you used to collect points |
| October 1, 2026 | New rules on municipality costs, local products, and disclosure (MIC) | A little. Some gifts may change or disappear |
| Donations from 2027 | A ¥1.93 million cap on the special resident tax deduction (MIC) | Only if your salary is around ¥100 million or more |
What happened to points in October 2025?
Since October 1, 2025, municipalities can’t collect donations through portals that give points for donating. MIC announced this rule on June 28, 2024. (MIC)
Before the ban, many people chose a portal by its points. For example, Rakuten users timed donations with Super Sale and Shopping Marathon events. Rakuten stopped these points on donations:
- normal Rakuten Ichiba points
- Super Sale and Shopping Marathon campaign points
- SPU bonus points from other Rakuten services
(Rakuten)
Do you still get any points?
Yes, from your credit card. Rakuten says card companies still give their usual points when you pay by card. These points come from the card company, not the portal. (Rakuten)
What this means for you: Choose a portal by its gifts, ease of use, and how it handles the one-stop exception. Ignore older guides that tell you to chase portal campaigns.
What changed in October 2026?
Four changes took effect on October 1, 2026. They are rules for municipalities, but they affect which gifts you can choose.
1. A new rule on how municipalities spend donations
Until September 2026, municipalities could spend up to 50% of donations on costs such as gifts, shipping, and portal fees. The new rule turns this around. At least 60% of donations must remain for the municipality’s actual projects, and the municipality must publish how it uses that money. (MIC)
What this means for you: Municipalities have less room for costly gifts and shipping. Some gifts may become smaller or need a higher donation.
2. Public lists of large payments
Municipalities must publish every vendor they paid ¥1 million or more in a year for furusato nozei, with the purpose of the payment. Examples of purposes are buying gifts, shipping, advertising, and payment processing. (MIC)
What this means for you: Nothing changes in how you donate. You can see where a municipality’s furusato nozei money goes, if you’re curious.
3. Stricter proof for processed local products
Some gifts are processed in the area from materials made elsewhere. For these, the municipality must now get a certificate showing what share of the product’s value was created in the area. It must also publish that share for each gift. (MIC)
The value created in the area must be more than half, using MIC’s standard price-based calculation. The portal listing must also say so and describe the local process. (MIC)
What this means for you: Some processed foods, drinks, and goods may disappear from portals. This can affect categories such as processed meat, sweets, and some appliances.
4. Tougher penalties for municipalities that break the rules
MIC can now look back at rule violations up to 5 years earlier, and remove a municipality from the system for up to 3 years. The look-back change started on October 1, 2026, and the removal period change started on April 1, 2026. (MIC)
What this means for you: The special deduction only applies to donations to designated municipalities. If a municipality is removed, donations to it no longer get the full deduction. (MIC)
What is the ¥1.93 million cap from 2027?
From donations made in 2027, the special part of the resident tax deduction can’t exceed ¥1.93 million. MIC says this cap is reached by someone with a salary of about ¥100 million who donates about ¥4.38 million. (MIC)
| Before | From 2027 donations | |
|---|---|---|
| Income tax part | No change | No change |
| Resident tax, basic part | No change | No change |
| Resident tax, special part | Up to 20% of your resident tax | Up to 20% of your resident tax, and no more than ¥1.93 million |
| Who is affected | People with a salary of about ¥100 million or more |
There is no cap on how much you can donate. Above the cap, you still get the basic deduction, but you pay more than ¥2,000 in total. (MIC)
What this means for you: Almost certainly nothing. Even a salary of ¥30 million is far below the level where the cap applies. Some articles describe this as a cut for “high earners” in general, which is misleading.
Under the old rules, the special part had no fixed cap, so the benefit kept growing with income.
What did not change?
The core rules you use as a donor are the same.
| Rule | Still true in 2026 |
|---|---|
| Your real cost | ¥2,000 per year, within your deduction limit (MIC) |
| Gift value | Up to 30% of the donation, local products only (MIC) |
| One-stop exception | Available if you don’t need a tax return and donate to 5 municipalities or fewer (MIC) |
| One-stop deadline | The form must arrive by January 10 of the next year (Takasaki City) |
| Tax return deadline | March 15 of the next year (MIC) |
| Online one-stop applications | Available at some municipalities with your My Number Card (MIC) |
Which claims about the changes are wrong?
You may see these claims in news stories, forums, and older guides.
| Claim | Is it true? |
|---|---|
| “Furusato nozei is ending.” | No. The system continues. The changes target portals and municipalities. |
| “You can still get Rakuten points if you donate during a campaign.” | No. Portal points ended on October 1, 2025. Only card points remain. |
| “High earners lose their benefit from 2027.” | Mostly no. The cap only affects salaries of about ¥100 million or more. |
| “Gifts are now worth less than 30%.” | The 30% limit is the same. Some gifts may change because of the new cost and local-product rules. |
| “Foreigners can no longer use furusato nozei.” | No. None of these changes mention nationality, and foreign residents pay resident tax under the same rules. (MIC) |
What should you do differently now?
- Pick a portal by its gifts and usability, not points. See Best Furusato Nozei Sites for English Speakers.
- Pay with a card that gives you points, if you want some points back.
- Don’t delay if you want a specific gift. Some processed products may disappear under the new rules.
- Keep using the one-stop exception if you qualify. Nothing about it changed.
FAQ
Did the deduction limit change in 2026?
No. The way your limit is calculated is the same. The only new cap starts with 2027 donations and affects salaries of about ¥100 million or more.
Why did the government ban points?
MIC said the rule changes are meant to make the system run more in line with its original purpose. (MIC)
Will my favorite gift disappear?
It might, if it is a processed product with little value created locally, or if the municipality can’t keep its costs within the new rule. Check the portal before the end of the year.
Do these changes affect the one-stop exception?
No. The conditions, the form, and the January 10 deadline are the same.
Are more changes coming?
MIC reviews the rules almost every year. In recent years, notices have come out around April, June, and September. (MIC) We update this page when rules change.
This article is general information, not tax advice. Information is as of October 2026. Sources: MIC press release (June 28, 2024), MIC: 2026 rule revision (March 24, 2026), MIC notice (April 1, 2026), Rakuten notice on points.