From around the end of 2025, people have been surprised to find out, ``Oh, I shopped around with Rakuten Hometown Tax Donation, but I can't get any points...?''

From October 1, 2025, an amendment to the Ministry of Internal Affairs and Communications' notification has completely prohibited hometown tax donation intermediary sites (portal sites) from awarding points to donors. All major sites such as Rakuten Furusato Nozei, Satofuru, Furunavi, and Furusato Choice are eligible.

In this article, we will clearly organize what is prohibited and what is still OK based on the latest information as of March 2026, and introduce five ways to make hometown tax payments even after the point ban.

What was banned in the first place? Organizing the points of the Ministry of Internal Affairs and Communications announcement

In June 2024, the Ministry of Internal Affairs and Communications will rel="noopener">Notification regarding hometown tax donation recruitment (Notification No. 203) has been revised and will come into effect from October 1, 2025.

Roughly speaking, this is what it means.

  • Prohibited things: Hometown tax donation portal sites (Rakuten, Satofuru, Furunavi, etc.) awarding points for donations
  • Prohibited things: Point redemption via point sites (Moppy, Hapitas, etc.)
  • What is not prohibited: Regular card points associated with credit card payments (described later)

In other words, the system no longer allows advantageous tricks such as ``Get 10x points on hometown tax payments with the Rakuten Shopping Marathon!''

Why was point granting banned?

There are two main reasons behind the Ministry of Internal Affairs and Communications' ban on awarding points.

The first is the issue of "fairness between local governments." Donations were concentrated on sites with high point return rates, and local governments with the stamina to pay large fees to major portals were at an advantage.

The second issue is the issue of "decreasing take-home pay for local governments." It has been pointed out that the portal site fees can reach 10-20% of the donation amount, reducing the amount of money available for vital regional development. According to Nihon Keizai Shimbun's report, the Ministry of Internal Affairs and Communications took issue with "point competition that goes against the purpose of the donation."

In short, the points battle has become too heated and the system has strayed from its original purpose.

Is Rakuten suing? Current situation

The group that most strongly opposed this regulation was the Rakuten Group. Rakuten claims that ``the cost of point redemption is borne by the company and does not put pressure on local governments' expenses,'' and in March 2025, it submitted a signature of opposition to the Prime Minister in March 2025.

Furthermore, in July 2025, an administrative lawsuit was filed in the Tokyo District Court seeking confirmation of the invalidity of the Ministry of Internal Affairs and Communications' notification. Rakuten argues that this is an ``excessive restriction on business freedom,'' and the government counters that ``Rakuten has no standing to sue.''

As of March 2026, no verdict has been issued yet and the lawsuit is ongoing. If Rakuten wins the lawsuit, there is a possibility that point redemption will be reinstated, but at the moment, the prohibition rule is still in place.

5 ways to make hometown tax payments even after points are banned

You may think, "If I can't get any points, what's the point in doing it?", but that's not the case. The system of hometown tax donation, which allows you to receive gifts in return for a 2,000 yen out-of-pocket payment, has not changed, so it is still a good deal. Combine the following five methods.

Method 1: Pay with a high return rate credit card

This regulation applies to the "granting of points from portal sites" and does not apply to regular points given by credit card companies for payments. This is clearly excluded in the notification of the Ministry of Internal Affairs and Communications as ``things provided in conjunction with payments related to normal commercial transactions.''

For example, if you donate 100,000 yen with a card with a return rate of 1.0% to 1.2%, you will earn points worth 1,000 to 1,200 yen. Now that portal points are no longer redeemable, card selection has become the biggest factor in determining the value of your card.

Method 2: Use your points for donations

While "giving" points is prohibited, "using" your points to pay for donations is not prohibited.

  • Rakuten Points → Can be used with Rakuten Hometown Tax
  • d Points → d Shopping Hometown Tax 100 Selections, available on d Payment compatible sites
  • PayPay points → Can be used at the hometown tax donation store in Yahoo! Shopping
  • Ponta points → Can be used with au PAY hometown tax

If you use the points you earn from everyday shopping to pay hometown tax, you can further reduce your actual out-of-pocket expenses.

Method 3: Compare the "donation amount of the same return gift" on multiple sites

Now that there is no longer a difference in point redemption, the criteria for choosing a site has changed to ``How much can I donate the same return gift?'' Even for the same return gift from the same municipality, the donation amount may vary depending on the site.

Nihon Keizai Shimbun also reports that ``After point redemption is prohibited, it is a good idea to apply on the site with the lowest donation amount.'' Even though it's a pain, the time it takes to compare two or three sites can make a difference of several thousand yen.

Method 4: One-stop special exception or don't forget to file your tax return

What is often overlooked is the post-donation procedures. To receive the hometown tax deduction, you need to apply for the one-stop special system or file a final tax return. If you forget this, you will just end up with an expensive purchase.

The one-stop exception is a convenient system that can be used if the recipient of donations is within five local governments and eliminates the need to file a tax return. However, those who need to file a tax return in the first year for medical expense deductions or mortgage deductions cannot use the one-stop exception, so they should apply all at once on their final tax return.

Method 5: Accurately understand the maximum deduction amount through simulation

It is dangerous to say, ``Just donate the same amount as last year.'' If your annual income or family structure changes, the maximum deduction amount will also change. Any amount that exceeds the upper limit will simply be taken out, so check it every year using the Deduction Maximum Amount Simulator provided by each portal site.

If you have a tax withholding slip, you can calculate it in 2 to 3 minutes. Gone are the days when it was worth it to go over a few points, so cap management is more important than ever.

What should we do about hometown tax payments in 2026?

In summary, the "optimal solution" for hometown tax donations after points are banned is as follows.

  1. Check the maximum deduction amount using the simulator
  2. Use a credit card with a high return rate as a payment method
  3. If you have points (Rakuten, d points, etc.), use them for donations
  4. Compare the amount of return gifts donated on multiple sites
  5. One-stop special exception or don't forget to file your tax return

Even if point rewards are no longer available, hometown tax donation is still a great system where you can receive a return gift for just 2,000 yen. Rather than being swayed by points, they choose the return gift they really want - in fact, it can be said that they are now able to use the system for its intended purpose.

FAQ

Have you stopped earning points on your credit card?

No, regular card points associated with credit card payments will continue to be earned. What was banned were points that portal sites (Rakuten, Satofuru, etc.) had independently given. The card's return rate will be applied as is, so it's a good idea to pay with a high return rate card.

Will my hometown tax no longer be counted in the Rakuten Shopping Marathon?

From October 2025, donations made through Rakuten Hometown Tax will not be eligible for Shopping Marathon and will not be eligible for SPU (Super Point Up Program). This is handled separately from regular shopping on Rakuten Market.

Is hometown tax payment via point site no good?

Yes, it is also prohibited to pay hometown tax via point sites such as Moppy or Hapitas and receive point refunds. Not only portal sites but also indirect point awarding are fully regulated.

If Rakuten wins the lawsuit, will point redemption be reinstated?

Rakuten Group has filed an administrative lawsuit in July 2025 seeking confirmation of the invalidity of the Ministry of Internal Affairs and Communications notification. Although no ruling has been made as of March 2026, if Rakuten wins the case and the notification is deemed invalid, there is a possibility that point redemption will be reinstated. However, since the outcome of the trial is uncertain, it is wise to act based on the current rules.

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