Furusato nozei x point activity: the core is donating within your cap and always routing via a point site - the cashback size is just a bonus

The real value of furusato nozei is the tax deduction and return gifts — not points. What changed after October 2025.

On October 1, 2025, the points landscape for furusato nozei (Japan's hometown tax donation system) changed dramatically. Following a directive from the Ministry of Internal Affairs and Communications (MIC), both portal site-awarded points (Rakuten points, d points, etc.) and cashback earned via point sites (Moppy, Hapitas, etc.) were banned. Point-site campaigns for furusato nozei have ended, and comparison sites have stopped directing users to such campaigns. The "double-earn via point sites" strategy is no longer possible.

Does that mean furusato nozei is no longer worth it? Not at all. The real value of furusato nozei has always been "getting a tax deduction and receiving return gifts from the municipality, with only ¥2,000 out of pocket." The donation amount above ¥2,000 is deducted from your residence tax and income tax the following year. As long as you donate within your cap, the fundamental equation — "¥2,000 out of pocket in exchange for meaningful return gifts" — has not changed at all. Points were always a bonus, and their removal makes the system's core value — the deduction and return gifts — clearer than ever.

This article explains how to use furusato nozei correctly given the post-ban reality: how to maximize your deduction and return gifts, how to choose between the one-stop exception and a full tax return, how to think about your deduction cap, and what limited cashback still remains (credit card points). See also: One-Stop Exception guide and Deduction Cap & Simulator guide.

What was banned after October 2025 — understanding the change accurately

Getting the facts right is important to avoid mistaken assumptions that "there must still be a way to earn points." The MIC directive banned two categories of cashback.

The ban was driven by concern that excessive point competition created unfair conditions between municipalities, because portal-site points were ultimately borne by the municipalities themselves. Advertising-fee-based point-site campaigns were caught by the same logic. The scope of the ban may be clarified or extended further, so we strongly recommend checking the MIC's official furusato nozei portal and individual municipality announcements for the latest information.

Why furusato nozei is still worthwhile without points — the deduction and return-gift structure

The foundation of furusato nozei is the tax mechanism. Your donation (minus ¥2,000) is deducted from your residence tax and income tax the following year. In other words, "the amount you donate this year comes back to you as lower taxes next year." This structure is entirely independent of points and has not changed since October 2025.

Additionally, the municipality sends you return gifts — local produce (rice, wagyu beef, seafood, etc.), household goods, experience vouchers, and more, proportionate to your donation amount. As long as the practical value of the return gifts is reasonable, the system is economically sound even without points, given only a ¥2,000 out-of-pocket cost.

One important note: the deduction benefit shows up as "lower taxes next year," so people who already pay little tax (lower income, or those with many existing deductions) may see limited benefit. Also, any donation above your deduction cap is pure out-of-pocket spending. The cap varies by income, family structure, and other deductions — always use a simulator to check your cap before donating (see the Deduction Cap guide).

Precisely because the "top-up" of points is gone now, it’s important to choose recipients by the return gift’s "real value to you." Measuring that value is simple: look at "will I actually use or consume it in daily life" and "how satisfied would I be if I bought it on the market." For example, foods you eat daily — rice, meat, seafood — or daily necessities you’ll definitely use can actually replace household spending, so the "probability of using it up" is high and nothing goes to waste. Conversely, choosing something you don’t normally use because it’s "unusual" or "looks lavish" can leave you with it idle even after getting the deduction. Choosing by "will I really use it" rather than the reward-rate figure is the trick to higher satisfaction with furusato tax in the post-point era. For choosing food return gifts, our gourmet and food guide is also helpful.

What cashback remains — credit card points

With point-site referrals banned, the only remaining "points-style cashback" in furusato nozei is the regular points earned when paying by credit card. However, even this comes with important caveats.

• Some cards exclude furusato nozei from points earning: Certain credit cards designate furusato nozei payments as ineligible for points. Before donating, check your card's terms or official site to confirm whether furusato nozei qualifies for points.
• Points accumulate at the regular rate: If your card does include furusato nozei, points accrue the same as any ordinary purchase — not at a special elevated rate.
• Returns are now at "ordinary shopping" levels only: The former multi-layer stack of portal points + point-site cashback + credit card points is gone. Only the credit card's regular points remain. The overall cashback potential has fallen significantly compared to pre-October 2025.

That "△" — credit card regular points — is the only remaining avenue for points-style benefit in furusato nozei. Always check your card's terms before assuming you'll earn points.

What to watch is not to over-expect from this "credit-card normal points." The earlier top-ups of referral rewards and portal proprietary points no longer exist; what remains is only the card’s native grant. No matter how large the donation, what you get is only points at the same level as ordinary shopping. That’s exactly why, after confirming "whether furusato tax counts toward point grants," you should ideally consolidate the donation onto a card in your own main economic zone, making the normal points you earn easier to combine with other spending and use up. The key is not to inflate your donation amount for the sake of points. Always keep the positioning that "deduction + return gift" is the substance, and the card’s normal points are just an extra.

The correct furusato nozei procedure after October 2025

Even with the changed points environment, using furusato nozei correctly still delivers meaningful tax deductions and return gifts. Follow these steps.

1. ① Check your deduction capYour cap depends on your income, family structure, and other deductions (mortgage deduction, etc.). Use a simulator on any furusato nozei portal or the National Tax Agency website to find your cap. Anything over the cap is pure out-of-pocket — this check is the top priority. See the Deduction Cap guide.
2. ② Choose your return giftsDecide which municipality to donate to and what return gift you want. Food, household goods, experience vouchers, and more are available. Browse by return-gift category or municipality on any furusato nozei portal and pick something you'll actually use.
3. ③ Check your credit card's termsConfirm whether furusato nozei qualifies for points on your card. If it's excluded, you won't earn any points at all. Check your card's official site or customer service.
4. ④ Complete your donation within the calendar yearThe deduction applies to the year in which you donate. For credit card payments, the payment date is the donation date. Late December convenience-store or bank-transfer payments risk missing the year-end cutoff due to processing delays — credit card payment is the safer choice.
5. ⑤ File the one-stop exception or your tax returnA deduction requires a filing. Salaried employees who don't otherwise file a tax return and donate to five or fewer municipalities can use the "one-stop exception." Everyone else needs to file a tax return. See the One-Stop Exception guide.

One-stop exception vs. tax return — which should you use?

To claim your deduction, you must either submit the one-stop exception application or file a full tax return. The right choice depends on your situation, and the paperwork burden differs significantly.

For the one-stop exception, the application must reach each municipality by January 10 of the year following your donation. If you donate in late December, request the forms from each municipality before the end of December to give yourself time. Note: if you later need to file a full tax return for any reason (e.g., medical expense deduction, first-year mortgage deduction), you must include your furusato nozei donations in that return — the one-stop exception is superseded. See the One-Stop Exception guide for step-by-step instructions.

Common mistakes and how to avoid them

• Trying to use a point-site referral, thinking it still works: All furusato nozei point-site campaigns ended in October 2025. Attempting to route through a point site based on old information won't generate any cashback — the campaigns simply don't exist. Check the current situation before acting.
• Donating over your cap: Anything above the cap is pure out-of-pocket spending with no deduction. Always run a simulator check before donating. With the "points bonus" gone, cap management matters more than ever.
• Forgetting to file (one-stop exception or tax return): Donating without filing means you won't receive the deduction. It is not applied automatically — you must file. The one-stop exception deadline (January 10 of the following year, received) is easy to miss.
• Using convenience-store or bank-transfer payment in late December: Non-card payment methods can involve processing delays that push the effective payment date into the new year, meaning the donation won't count for the current tax year. Use a credit card in late December.
• Planning to use the one-stop exception after donating to 6+ municipalities: Once you exceed five municipalities, the one-stop exception is unavailable. You must file a full tax return for all donations. Keep track of how many municipalities you've donated to.
• Assuming your credit card earns points on furusato nozei without checking: Some cards exclude furusato nozei. Verify before donating rather than discovering the exclusion afterward.

To sum up these failures in one line: "Don’t get jerked around by old point information; do limit management and procedures reliably." Standing on the premise that "point-site referral and portal proprietary points are no longer granted," ① confirm the limit with a simulator and donate within it, ② choose return gifts you’ll actually use, ③ complete the One-Stop exception or tax return procedure within the deadline — keep these three and, even without points, furusato tax still fully delivers the "deduction + return gift" benefit. Rather than fretting over whether points exist, carefully walking through the system’s original use is in the end the least costly way to proceed.

Mini glossary — key furusato nozei terms

Knowing the vocabulary around furusato nozei deductions and procedures is enough to avoid common pitfalls like exceeding your cap or forgetting to file. Take a quick look before you donate.

Once you know the terms, you can evaluate furusato nozei on the merits of the system itself — deductions and return gifts — rather than asking "what about points?" After October 2025, with point-site cashback banned, correctly managing your cap and completing the paperwork (one-stop exception or tax return) is the most important thing you can do to avoid losing money on furusato nozei.

Frequently asked questions