The basics of “pay home tax” where you can buy local specialties for a cost of 2,000 yen on your own

Which system is the hometown tax payment system?

It’s a donation system that goes to cities, wards, towns and villages across the country. We receive various residential services such as medical care and education from the local government, but if we leave the place we were born and raised due to going to school or work and move to a city city, etc., taxes will be collected at the local government of the destination. , The local government in my hometown does not collect taxes. Therefore, the homeland tax payment system started as a system that allows you to pay taxes for the home country where you grew up.

How to choose the local government to pay your hometown tax

Homeland tax payments started as a “system that can contribute to the home country where you were born and raised”, but you are free to choose which local government to donate, regardless of where you are from. . Many local governments publish their ideas about paying taxes in their homeland and how donations are used on their websites, so you can consult and choose “I want to support local government. This! “. In addition, some local governments allow people who have paid home taxes to choose how to use the donation. Furthermore, since there is no limit on the number of local governments that pay local taxes, it is possible to pay local taxes to multiple local governments.

Tax payment procedures of hometown

Once you’ve decided on the city where you want to pay your hometown tax and the gifts you want to return, you can check in with that city. Procedures are different for each municipality, so check out each municipality’s website.

[Bài viết liên quan]Read more about paying home taxes

Pay attention to hometown taxes

The homeland tax payment system was started in 2008. However, the tax payment in the home country has only recently been widely recognized.

According to the “Homeland Tax Payment Survey Results (* 1)”, the amount of home taxes received in 2008, when the system started, was 8.1 billion yen, which was almost unchanged until around 2014 However, this figure was 165.2 billion yen in 2015 and 288.4 billion yen in 2016, an increase of more than 30 times compared to 2008.

The 2011 East Japan earthquake was one of the reasons why the tax payment system in the homeland got noticed. Many donations have been made to help severely damaged cities, such as the creation of an Earthquake Recovery Fund, and one of them is “We can assist local governments in the disaster area. ” Many people have come to take advantage of their hometown taxes.

In addition, the increase in the number of rural agricultural producers due to a new sales channel using tax payments in the home country, and the increase in tax rewards at home is one of the reasons. Tax payments in the homeland became more attractive. Can say so.

Out-of-pocket amount is in principle 2,000 yen under the Furusato tax deduction scheme

Furusato tax payments have a certain upper limit, but this is a very beneficial system since all donations exceeding 2,000 yen will be deducted. Therefore, you will only have to pay 2,000 yen. For example, if a salaried employee with an annual income of 7 million yen (when the dependent is a spouse) pays a homeland tax of 30,000 yen, 28,000 yen (30,000 yen-2,000 yen) would be tax. income and residency. It will be deducted (refunded) from the tax.
The amount of the donation is deducted completely depending on your income and family structure. In a family of a couple and one child (under age), if the home taxpayer’s income is 6 million yen, then 66,000 yen is a guide to the annual upper limit. Details vary depending on mortgage deduction and medical expense deduction, so please contact the local government where you reside for specific calculations.

Even if you file home taxes, you do not need to make a final return if you are in 5 categories

To receive a home tax deduction, you must file a year-end return after paying your home tax. However, if the number of local governments that have donated falls within 5 groups, then the final declaration is not required using the “Furusato Tax One-Stop Special Exceptions System”. When paying your hometown tax, submit the “One-time special exception to Furusato tax payment” registration form to the local government where taxes are paid in your home country. After that, the full amount deducted will be deducted from the residency tax for the following year.

Tax payments at home are becoming more attractive year by year. Even if you haven’t paid your homeland tax, why can’t you find specials from all over the country?

* 1 Survey results on current tax payment in the home country (Ministry of Home Affairs and Communications)