Your furusato nozei limit is the most you can donate while still paying only ¥2,000. It depends on your resident tax and your income tax rate, so it grows with your income. You can estimate it in two ways: with a simulator, or with one formula and last year’s resident tax notice.
Key facts (as of October 2026)
- What the limit is: The donation amount where your real cost stays at ¥2,000.
- What sets it: 20% of your resident tax (income-based part), and your income tax rate.
- Above the limit: You still get a deduction, but you pay more than ¥2,000 in total.
- Salary over ¥20 million: You must file a tax return, so plan to claim this way. (NTA)
What is the furusato nozei limit?
It’s the point where the deduction stops covering everything above ¥2,000. Below the limit, almost the whole donation comes back. Above it, part of each extra yen is not deducted.
The deduction has three parts. MIC sets each one with a formula. (MIC)
| Part | Formula | Its own cap |
|---|---|---|
| Income tax | (Donation − ¥2,000) × your income tax rate | Donations up to 40% of your total income |
| Resident tax, basic part | (Donation − ¥2,000) × 10% | Donations up to 30% of your total income |
| Resident tax, special part | (Donation − ¥2,000) × (90% − your income tax rate) | 20% of your resident tax (income-based part) |
The special part is the one that runs out first for most people. When it hits 20% of your resident tax, you have reached your limit. (MIC)
Why your limit exists
Each bar is one donation. The special part is capped, so above your limit part of the donation is not deducted.
Example assumes a 20% income tax rate. Source: Ministry of Internal Affairs and Communications (MIC). As of October 2026.
How do you calculate your limit?
You can turn the MIC formula around to find your limit. You need two numbers.
- Your resident tax, income-based part (shotokuwari, 所得割額). It’s on your resident tax notice (juminzei kettei tsuchisho, 住民税決定通知書).
- Your income tax rate. Find it in the table in the next section.
Then use this formula:
Limit ≈ (Resident tax income-based part × 20%) ÷ (90% − income tax rate × 1.021) + ¥2,000
The 1.021 adds the special reconstruction income tax. MIC says to use the income tax rate including this tax for donations through 2037. (MIC)
A worked example
Say your resident tax notice shows an income-based part of ¥1,000,000, and your income tax rate is 33%.
- 20% of ¥1,000,000 = ¥200,000
- 33% × 1.021 = 33.693%
- 90% − 33.693% = 56.307%
- ¥200,000 ÷ 56.307% = about ¥355,196
- Add ¥2,000: about ¥357,000
So your estimated limit is about ¥357,000.
This is an estimate. MIC notes that the special part uses an income tax rate based on your resident tax income. It can differ slightly from your actual income tax rate. (MIC) Leave a margin.
What is your income tax rate?
Japan’s income tax rate depends on your taxable income, which is your income after deductions. (NTA)
| Taxable income | Income tax rate |
|---|---|
| Up to ¥1,949,000 | 5% |
| ¥1,950,000 to ¥3,299,000 | 10% |
| ¥3,300,000 to ¥6,949,000 | 20% |
| ¥6,950,000 to ¥8,999,000 | 23% |
| ¥9,000,000 to ¥17,999,000 | 33% |
| ¥18,000,000 to ¥39,999,000 | 40% |
| ¥40,000,000 and over | 45% |
Rates as of April 1, 2026. Taxable income is lower than your salary. Deductions such as the employment income deduction and social insurance come off first. Your withholding slip (gensen choshuhyo, 源泉徴収票) helps you estimate it.
What does the limit look like at different levels?
These examples use the formula above. Find the row closest to your resident tax notice.
| Resident tax, income-based part | Income tax rate | Estimated limit |
|---|---|---|
| ¥500,000 | 20% | about ¥146,000 |
| ¥1,000,000 | 23% | about ¥303,000 |
| ¥1,000,000 | 33% | about ¥357,000 |
| ¥2,000,000 | 33% | about ¥712,000 |
| ¥2,000,000 | 40% | about ¥816,000 |
| ¥3,000,000 | 40% | about ¥1,223,000 |
A higher income tax rate means a higher limit for the same resident tax. That’s because more of the deduction comes from income tax, so the capped special part grows more slowly.
For a calculator that does this for you, see Rakuten’s free simulator (in Japanese).
Why use last year’s resident tax notice?
Your limit is based on this year’s income, but this year’s resident tax isn’t known until next June. Last year’s notice is the best number you have during the year.
| If your income this year is | Then your real limit is probably |
|---|---|
| About the same as last year | Close to the estimate |
| Higher (raise, bonus, RSUs) | Higher than the estimate |
| Lower (job change, unpaid leave) | Lower than the estimate. Donate less. |
If your income dropped, or you started working in Japan last year, be careful. Resident tax is based on the previous year’s income, so your notice may not reflect a full year. (MIC)
What lowers your limit?
Anything that lowers your taxable income lowers both your resident tax and your income tax rate. That lowers your limit.
| What you do | Effect on your limit |
|---|---|
| Add a spouse or child as a dependent | Lower |
| Contribute to iDeCo | Lower |
| Claim large medical expenses | Lower |
| Have a lower bonus than expected | Lower |
| Receive RSUs or a large bonus | Higher |
The iDeCo effect surprises many people. iDeCo contributions are fully deductible from your income. (iDeCo official site) Lower taxable income means lower resident tax, and your limit is based on your resident tax. See iDeCo vs NISA.
Medical expense deductions also mean you file a tax return, so you can’t use the one-stop exception. (Takasaki City)
What happens if you donate more than your limit?
You still get a deduction, but not the full amount above ¥2,000. The special part stops at 20% of your resident tax, while the basic part and income tax part continue. (MIC)
In plain terms, each yen above your limit is only partly deducted. You get back your income tax rate plus the 10% basic part, and pay the rest yourself. You keep the gift, so going slightly over isn’t a disaster. Going far over is expensive.
Does the 2027 cap change your limit?
Only if your salary is around ¥100 million or more. From 2027 donations, the special part also can’t exceed ¥1.93 million. MIC says that cap is reached by someone with a salary of about ¥100 million donating about ¥4.38 million. (MIC)
For everyone else, the formula on this page stays the same.
What about foreign residents with special situations?
| Situation | What to check |
|---|---|
| Salary over ¥20 million | You must file a tax return. Claim the deduction there. (NTA) |
| Paid by an overseas employer | You must file a tax return. (NTA) |
| Arrived in Japan this year | You have no resident tax notice yet. Next year’s resident tax is based on this year’s income. (MIC) Use a simulator instead. |
| Leaving Japan before next January 1 | You may not pay resident tax next year. (MIC) Ask a tax accountant before donating. |
What should you do next?
- Find last year’s resident tax notice and note the income-based part (所得割額).
- Estimate your income tax rate from the table.
- Calculate your limit, then donate a little below it.
FAQ
Where is the income-based part on my resident tax notice?
Look for 所得割額 (shotokuwari-gaku). Notices list it for the city and the prefecture separately on some formats. Add them together. Formats differ by city, so check yours.
Is the simulator on portals accurate?
Portal simulators give a rough estimate from your salary and family. They may miss RSUs, side income, and some deductions.
Does my spouse have a separate limit?
Yes. Each taxpayer has their own limit based on their own taxes.
Can I use last year’s limit again?
Only if your income and deductions are about the same. Recalculate if anything changed.
Is the limit the same with the one-stop exception and a tax return?
In most cases, yes. The total deduction is usually the same either way. (Takasaki City)
This article is general information, not tax advice. The formula gives an estimate, not an exact figure. Information is as of October 2026. Sources: MIC: Tax deductions, NTA: Income tax rates, NTA: Who must file.