Furusato Nozei (Hometown Tax) Simulator
Detailed version covering real estate income & property sales
Calculates income tax and resident tax separately for a precise donation limit — even in years with rental income or a property sale
In the year you sell real estate, your Furusato Nozei limit jumps
Your donation limit is proportional to your resident tax income levy. Real estate capital gains are taxed separately, but they are still added to the resident tax levy — so your limit rises sharply in the year of a sale. Long-term gains (held over 5 years) add 5% of the gain to the levy; short-term gains (5 years or less) add 9%.
For example, a single person with a ¥5M salary (¥720,000 social insurance) has a limit of about ¥61,700 on salary alone — but with a ¥30M long-term capital gain in the same year, the limit rises to about ¥449,100 (as calculated by this simulator). Major portal simulators generally only handle salary income and basic deductions, and almost no tool can calculate this sale-year increase.
This simulator calculates income tax and resident tax separately, and covers separate taxation (long/short-term real estate gains, stocks), real estate income (including loss offsetting), interaction with the housing loan credit, and One-Stop eligibility — all at once.
The donation limit formula
The resident tax income levy includes separately-taxed portions (long-term gains 5%, short-term 9%, stocks 5%) after subtracting the adjustment credit. The applicable income tax rate is determined from "resident taxable income minus personal deduction differences", falling back to separate-taxation rates when there is no comprehensively-taxed income.
Frequently asked questions
Why does my Furusato Nozei limit increase in the year I sell real estate?
Capital gains are taxed separately but still added to the resident tax income levy, and the donation limit is based on 20% of that levy. Long-term gains (held over 5 years) add 5% of the gain; short-term gains (5 years or less) add 9%.
What happens to my limit if I use the ¥30M special deduction?
The limit is calculated on the gain after the special deduction. If the deduction reduces your gain to zero, your limit is the same as with salary and other income alone. This simulator lets you toggle the deduction.
How does rental real estate income affect the limit?
Real estate income is taxed comprehensively together with salary, increasing your limit. Losses offset your salary income and lower the limit (interest on land-acquisition loans cannot be offset, so results may differ slightly).
Can I use the One-Stop Exception in the year I sell real estate?
No. Declaring capital gains requires a tax return. You receive an equivalent deduction through the donation deduction on your tax return, so you do not lose any deduction amount.
Do I lose money combining Furusato Nozei with the housing loan credit?
Not with the One-Stop Exception. With a tax return, the donation deduction lowers your income tax, pushing more of the housing loan credit toward resident tax — anything over the transfer cap (5% of taxable income, max ¥97,500 for move-in from 2022) is lost. This simulator estimates the amount lost.
Do stock gains and dividends affect the limit?
Stock gains and dividends declared under separate taxation add 5% to the resident tax levy and increase your limit. Amounts left undeclared in a withholding-type designated account have no effect.
Which year's income is used?
The income of the calendar year you donate (January–December). If you donate before your income for the year is final, we recommend staying within the 95% safe line.
Which tax rules does the calculation use?
It reflects the Reiwa 7 tax reform (special addition to the basic deduction, minimum salary income deduction raised to ¥650,000). It also correctly keeps the resident tax basic deduction at ¥430,000.