Furusato Nozei: One-Stop Exception vs Tax Return, What Comes Back and How to File

One-stop exception vs tax return

With either method, as long as you stay within your limit, your out-of-pocket cost is 2,000 yen and the total tax returned is about the same. What differs is the paperwork, and which tax the money comes back from and when.

The part taken off resident tax in place of income tax under the one-stop exception is called the special filing deduction. It's calculated as special portion deduction × income tax rate × 1.021 ÷ (90% − income tax rate × 1.021), and it comes to about the same as what would have come back through income tax on a return.

Comparing the breakdown with a real example

This is the breakdown for a single employee earning 5 million yen (limit of 61,731 yen) who donates 50,000 yen in a year.

If the same person donates 30,000 yen, the one-stop exception gives a 27,999-yen deduction and 2,001 yen out of pocket. A tax return gives a 2,800-yen income tax refund + 25,141 yen of resident tax, for a 27,941-yen deduction and 2,059 yen out of pocket. Because income tax is calculated with amounts under 100 yen dropped, a return can differ by a few tens of yen. The gap is tiny, so you can choose based on effort and your own situation.

Conditions and procedure for the one-stop exception

• You must be someone who doesn't need to file a tax return in the first place (such as employees and civil servants who get year-end adjustment)
• You must donate to 5 or fewer municipalities in a year (January to December). Any number of donations to the same municipality counts as one
• You must submit an application to the municipality for every donation. Two donations to the same municipality mean two applications
• Applications must arrive by January 10 of the following year. For donations made in 2026, that's January 10, 2027
• The application needs your My Number and a copy of your ID. Some municipalities offer online applications using a My Number Card
• If your address or name changes after applying, for example through moving or marriage, send a change notice to each recipient by January 10

How to claim the donation deduction on a tax return

1. 1

   Gather your donation certificates

   Prepare the donation receipt certificate sent by each recipient, or the annual combined certificate for the donation deduction issued by a portal site. A combined certificate can be loaded into e-Tax as data.

2. 2

   Prepare your withholding slip

   Employees copy the amounts from the withholding slip issued by their employer onto the tax return.

3. 3

   Fill in the donation deduction section

   On the National Tax Agency's tax return preparation site or e-Tax, enter each recipient, donation date and amount under the donation deduction. Selecting that the recipient is a prefecture or municipality automatically fills in the fields needed for the resident tax deduction.

4. 4

   Submit by the deadline

   The deadline is March 15 of the following year. A return filed just to get a refund can be submitted for 5 years from January 1 of the following year, so even if you missed the one-stop deadline, you can still get the deduction through a tax return.

The income tax refund arrives in about 3 weeks with e-Tax and about 1 to 1.5 months on paper, and the rest comes back as lower resident tax from June of the following year. How to check whether it was deducted is explained in how to check your furusato nozei deduction.

Compare the 2 methods with the simulator

In the Calculate from donation tab of the Furusato Nozei Deduction Limit Simulator, enter your year's total donations and switch the Filing method between one-stop exception and tax return. The breakdown table and bar chart switch accordingly, showing how much comes back from which tax and when: the income tax refund on a return, or the resident tax special filing deduction under the one-stop exception.

If you enter 6 or more for the Number of municipalities donated to and choose the one-stop exception, a notice appears saying a tax return is required. How the limit itself works is covered in how to calculate your furusato nozei limit, and the effect of combining with the medical expense deduction and others in how it interacts with iDeCo, the medical expense deduction and the housing loan deduction.

FAQ

Which is better, the one-stop exception or a tax return?

The total tax returned is about the same, and neither is much better. The most a return might do is shift your out-of-pocket cost by a few tens of yen through income tax rounding. If you don't plan to file a return and you donate to 5 or fewer municipalities, the one-stop exception is easier.

What if my one-stop application misses January 10?

That donation isn't covered by the one-stop exception, but you can get the deduction by claiming it on a tax return. Returns for a refund can be filed for 5 years. In that case, include all of that year's donations, including those to other municipalities.

What happens to furusato nozei if I file a return for the medical expense deduction?

Your one-stop applications are voided, so you must enter all your furusato nozei donations under the donation deduction on the return. Donations you leave out aren't deducted, so be sure to enter them along with the medical expense deduction.

If I donate to the same municipality 3 times, how does it count toward the 5 municipalities?

Any number of donations to the same municipality counts as one. But each donation needs its own application, so 3 donations mean 3 applications.