What’s a hometown tax program?

Where do we find a hometown tax program? Japan

What does a hometown tax program allow? Allows taxpayers to make donations to any participating municipality in the country — often in return for a small token of appreciation in the form of local produce. The donated amount is then deducted from the taxpayer’s annual local tax bill. 

What’s the benefit? benefit to rural areas as 92% of the population lives in urban areas

Has it worked? In 2019, it accounted for 500 billion JPY (around $4.7 billion USD) in revenue for local governments

Rakuten Today | Onions and innovation: Supporting local communities with Japan’s hometown tax program