Furusato Nozei ‘Losses’ in 19 Prefectures: Tokyo’s Deficit Hits ¥225.5 Billion in FY2025

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According to an Asahi Shimbun estimate, total donations under the furusato nozei (hometown tax) program hit a record ¥1.3314 trillion in fiscal 2025, while 19 prefectures — including Tokyo — saw more tax revenue flow out than they took in, putting them in the red. Tokyo alone posted a deficit of ¥225.5 billion.

On the thread, voices arguing “it’s just self-inflicted — they lost the gift-competition” clashed with critics saying “the residence-tax system itself is fundamentally warped,” and the discussion spread to cover the circumstances of other deficit-running prefectures like Saitama and Kanagawa.

Asahi Shimbun independently calculated, by prefecture, the balance for fiscal 2025 furusato nozei — donations received, minus the cost of return gifts and the revenue lost to residence-tax deductions — and found that in 19 prefectures the outflow exceeded the inflow, putting them in the red. Tokyo’s deficit alone comes to ¥225.5 billion. The drain on tax revenue has swelled especially in urban areas, once again exposing the distortions built into the system.

Favoring the wealthy? A wave of highly cash-convertible “pure gold” furusato nozei return gifts keeps popping up

According to data released by the Ministry of Internal Affairs and Communications at the end of last month, total furusato nozei donations for fiscal 2025 reached a record approximately ¥1.3314 trillion. Based on the published figures, Asahi Shimbun combined fiscal 2025 donation totals with the cost of return gifts and shipping, along with the amounts to be deducted from residence tax under fiscal 2026 taxation, to estimate each municipality’s balance.

Source: asahi.com / Original article here

2Anonymous2026/08/26(水) 09:03:24.00ID:vac/aeIv0
Maybe they should just quit already
42Anonymous2026/08/26(水) 09:23:16.57ID:yF2At81P0
Kawasaki City should pass an ordinance banning furusato nozei as an act of discrimination 😠
181Anonymous2026/08/26(水) 10:22:20.69ID:lVRTAQ/C0
>>42
They're running these angry ads on the Nanbu train line — basically guilt-tripping riders with 'because of furusato nozei outflows, we've lost funding for children's facilities.'
If that's really the issue, just prioritize children's facilities in the current budget. Anyway, I don't want to pay Kawasaki a cent, so I'm maxing out my donations elsewhere.
3Anonymous2026/08/26(水) 09:04:50.97ID:WP+cziLR0
That's just the payoff for their hard work, no?
111Anonymous2026/08/26(水) 09:50:21.23ID:XWbzELpU0
>>3
Exactly this.
Places like Tokyo simply weren't competitive enough.
The deficit prefectures are only losing out because their return gifts aren't appealing, right?
They should realize just how much they've been coasting.
8Anonymous2026/08/26(水) 09:08:53.72ID:3/TlflXa0
Isn't Saitama's situation actually worse than Tokyo's?
16Anonymous2026/08/26(水) 09:13:21.05ID:nW/23VSW0
>>8
No coastline, no real local specialties or famous products, and it's awkwardly semi-urban.
11Anonymous2026/08/26(水) 09:11:32.28ID:PVLEF7pq0
Just scrap this system already.
It's twisted — you get municipal services without your residence tax actually going to your home municipality.
161Anonymous2026/08/26(水) 10:12:07.16ID:aYT4YQXd0
>>11
Reminder: even after doing furusato nozei, people still pay far more residence tax to their home municipality than you do.
13Anonymous2026/08/26(水) 09:12:32.58ID:NQI4VS/a0
That tax shortfall just comes back around as a de facto residence-tax hike.
202Anonymous2026/08/26(水) 10:41:44.17ID:Cj9S0Pyz0
>>13
And so furusato nozei just keeps growing even more — quite the self-sustaining cycle.
22Anonymous2026/08/26(水) 09:15:56.22ID:mm7VBd+n0
Every return gift they hand out
shrinks Japan's total tax revenue as a whole.
29Anonymous2026/08/26(水) 09:17:53.89ID:J42kuYZK0
>>22
The only ones making a killing are the middleman brokers.
They've even got enough spare cash to blast out a ton of TV commercials.
27Anonymous2026/08/26(水) 09:17:37.35ID:2vB1trEl0
Abolishing it amounts to the same thing as a tax hike, so the Ministry of Finance loves it whenever the 'abolish it' argument picks up steam.
33Anonymous2026/08/26(水) 09:19:08.94ID:xSnIbYtH0
>>27
If there's a shortfall, the only option left is raising residence taxes.
43Anonymous2026/08/26(水) 09:23:26.88ID:6VCvu6FW0
Just end this already — I want my taxes to go to my actual hometown.
51Anonymous2026/08/26(水) 09:25:45.33ID:6BorEubM0
>>43
If you don't file for furusato nozei, your taxes just go to your home municipality as normal, don't they?
46Anonymous2026/08/26(水) 09:24:27.16ID:xSnIbYtH0
If you want to keep the system going, scrap the return gifts and the deductions.
49Anonymous2026/08/26(水) 09:25:28.35ID:Icb9KX/z0
75% of the tax revenue lost to furusato nozei outflows actually comes back as a top-up to local allocation tax grants — municipalities that don't receive those grants are wealthy enough that it's no big deal for them.
55Anonymous2026/08/26(水) 09:27:29.43ID:xSnIbYtH0
>>49
That's still tax money though, isn't it?
70Anonymous2026/08/26(水) 09:32:27.48ID:xYVHcvcN0
If they scrapped furusato nozei,
the logistics labor shortage would ease, fewer trucks would mean fewer accidents and less traffic, and even the gasoline shortage would improve.
77Anonymous2026/08/26(水) 09:33:33.58ID:4rOnL1YB0
>>70
Guess we'd have to ban online shopping too and force everyone to buy locally, huh.
80Anonymous2026/08/26(水) 09:34:19.05ID:0/M7TjHf0
A site that shows furusato nozei tax revenue by prefecture — the results really make you think: 'Hokkaido's haul is insane' – Togetter
Published December 26, 2023
https://togetter.com/li/2282534

They're raking in so much cash in places with barely any people that you have to wonder what they're even going to do with it.
It's nuts.
86Anonymous2026/08/26(水) 09:37:21.25ID:6BorEubM0
>>80
The money's just flowing to places that actually have the production capacity for goods in demand.
Piling money into places that only consume goods and services wouldn't generate any reproduction of value anyway.
105Anonymous2026/08/26(水) 09:47:50.49ID:Fz9m4w8K0
Saitama's pears should be a strong contender, but I guess it comes down to name recognition.
106Anonymous2026/08/26(水) 09:48:53.07ID:VPoNioej0
>>105
Yamanashi and Yamagata seem to grow tons of fruit somehow. And mikan (mandarin oranges) make me think of Wakayama and Ehime.
110Anonymous2026/08/26(水) 09:50:03.44ID:VPoNioej0
It'd be hilarious if some municipality announced, 'Due to furusato nozei outflows, we can no longer collect your garbage.'
160Anonymous2026/08/26(水) 10:11:31.41ID:f5Wa3f/q0
>>110
Big cities have so much slack they can prop up a whole army of amakudari orgs (cushy sinecures for retired bureaucrats) — they'll be fine, lol.
129Anonymous2026/08/26(水) 09:57:04.50ID:Fz9m4w8K0
>>Besides Tokyo, Kanagawa (¥84.6 billion), Osaka (¥48.9 billion), Saitama (¥48.1 billion), and Aichi (¥46.9 billion) also posted big deficits — all concentrated in the three major metro areas.

That's basically the top of the tax-revenue ranking though.
Sounds like a huge success.
172Anonymous2026/08/26(水) 10:16:56.38ID:92ck0PY30
>>129
Even if every single resident maxed out their furusato nozei donations, it would only cut residence tax revenue by around 20% at most.
152Anonymous2026/08/26(水) 10:07:38.57ID:VPoNioej0
>>146
Potatoes come from Hokkaido.
Rice is domestic rice.

Don't you dare eat any, got it?
162Anonymous2026/08/26(水) 10:12:26.31ID:cigUeWez0
>>152
I'll just live on Calorie Mate (a Japanese meal-replacement snack bar).
If I need potatoes and rice, I can just target those two specifically.
163Anonymous2026/08/26(水) 10:12:38.44ID:XuNNZNNt0
Whoever's running the fee/commission business is surely raking in the most money from all this.
164Anonymous2026/08/26(水) 10:13:32.44ID:VPoNioej0
>>163
Kind of like how, in the gold rush, the only ones who really profited were the tool sellers and Levi's.
167Anonymous2026/08/26(水) 10:14:30.77ID:f5Wa3f/q0
>>163
Wait, so you're saying don't use Amazon, Rakuten, or Yodobashi either?

*This article is compiled and summarized from the 5ch (Breaking News Plus) thread “[Furusato Nozei] ‘Losses’ in 19 Prefectures: Tokyo’s Deficit Hits ¥225.5 Billion in FY2025.”

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