As of 2024, we have compiled a list of taxes that will be incurred when purchasing or owning a car. At the time of purchase, there are the “Automobile Tax,” “Environmental Performance Tax, ” ” Automobile Weight Tax ,” and ” Automobile Tax ,” which are all paid annually. In addition, there is the ” Automobile Weight Tax ” that is levied at the time of vehicle inspection, which is held every two years . We have compiled a list of how taxes are levied under each rule. Anyone who has purchased a car at least once will have seen this, but for those who have never purchased a car, the amount of taxes that will be levied will be surprising.
Five types of car taxes
Currently, there are five main types of taxes levied on cars . The tax system underwent major revisions in 2019, with the “Automobile Acquisition Tax” being abolished and replaced by an “Environmental Performance Tax.”
Automobile tax / Light vehicle tax (at the time of vehicle purchase) (once a year)
Environmental performance tax (at the time of vehicle purchase)
Automobile weight tax (at the time of vehicle purchase) (at the time of vehicle inspection)
Consumption tax (vehicle inspection, vehicle, fuel, maintenance)
Gasoline tax/diesel transaction tax (refueling)
automobile tax
Automobile tax is a tax paid by anyone who owns a car as of April 1st each year. A vehicle tax payment notice will be sent to the registered owner by mail. Payment slips can be paid at convenience stores, banks, and, depending on the local government, by PayPay or credit card.
Motor vehicle tax rate table for newly registered private passenger cars
The automobile consumption tax increase took effect on October 1, 2019, and in conjunction with this , tax reforms were made in October 2019 , resulting in different amounts being taxed depending on when the car was purchased.
| Engine displacement | Tax rate before reduction until September 2019 |
Tax rate after reduction from October 2019 |
Amount of reduction |
|---|---|---|---|
| 660cc | 10,800 yen | 10,800 yen | ▲0 |
| 1,000cc or less | 29,500 yen | 25,000 yen | ▲4,500 yen |
| More than 1,000cc but less than 1,500cc | 34,500 yen | 30,500 yen | ▲4,000 yen |
| More than 1,500cc but less than 2,000cc | 39,500 yen | 36,000 yen | ▲3,500 yen |
| More than 2,000cc but less than 2,500cc | 45,000 yen | 43,500 yen | ▲1,500 yen |
| More than 2,500cc but less than 3,000cc | 51,000 yen | 50,000 yen | ▲1,000 yen |
| More than 3,000cc but less than 3,500cc | 58,000 yen | 57,000 yen | ▲1,000 yen |
| More than 3,500cc but less than 4,000cc | 66,500 yen | 65,500 yen | ▲1,000 yen |
| More than 4,000cc but less than 4,500cc | 76,500 yen | 75,500 yen | ▲1,000 yen |
| More than 4,500cc but less than 6,000cc | 88,000 yen | 87,000 yen | ▲1,000 yen |
| Over 6,000cc | 111,000 yen | 110,000 yen | ▲1,000 yen |
Automobile tax rate table for private passenger cars over 13 years old
You may have heard that automobile tax increases for cars that are 13 years old or older. The automobile tax for maintaining a car and the automobile weight tax paid at the time of vehicle inspection increase the older the car. Cars that are more than 13 years old or older than new registration are subject to a 15% surcharge under the “special tax rate under the green tax system.”
| Engine displacement | Less than 13 years since new registration |
13 years have passed since the first registration |
|---|---|---|
| 660cc | 10,800 yen | 12,900 yen |
| 1,000cc or less | 25,000 yen | 33,900 yen |
| More than 1,000cc but less than 1,500cc | 30,500 yen | 39,600 yen |
| More than 1,500cc but less than 2,000cc | 36,000 yen | 45,400 yen |
| More than 2,000cc but less than 2,500cc | 43,500 yen | 51,700 yen |
| More than 2,500cc but less than 3,000cc | 50,000 yen | 58,600 yen |
| More than 3,000cc but less than 3,500cc | 57,000 yen | 66,700 yen |
| More than 3,500cc but less than 4,000cc | 65,500 yen | 76,400 yen |
| More than 4,000cc but less than 4,500cc | 75,500 yen | 87,900 yen |
| More than 4,500cc but less than 6,000cc | 87,000 yen | 101,200 yen |
| Over 6,000cc | 111,000 yen | 127,600 yen |
Reference: Ministry of Internal Affairs and Communications
Environmental performance tax (applied when acquiring a vehicle)
Starting October 1, 2019, the automobile acquisition tax will be abolished and an environmental performance tax will be introduced. Because the name sounds like a discount, some people may not think that it will be charged when purchasing a vehicle, but any vehicle that does not meet the standard will incur a fee. Hybrid vehicles are exempt, but if you purchase a gasoline-powered vehicle, you can expect to incur a fee.
Environmental performance (private car)
Environmental performance tax rate for private passenger cars (if acquired between January 1, 2024 and March 31, 2025)
| Fuel efficiency, etc. | Registered vehicle | Light vehicle |
|---|---|---|
| Electric vehicles (PHEVs), etc. |
Tax exemption | Tax exemption |
Achieve 85% of the 2030 fuel efficiency standard |
Tax exemption | Tax exemption |
Achieve 80% of the 2030 fuel efficiency standard |
1.0% | Tax exemption |
Achieve 70% of the 2030 fuel efficiency standard |
2.0% | 1.0% |
| Other than the above | 3.0% | 2.0% |
▼For more details, please refer to this article.
→ Changes to acquisition tax and automobile tax due to the consumption tax increase from October 1, 2019
Vehicle weight tax (weight tax)
If you pay the automobile weight tax (weight tax) when you purchase a new car, the period is three years and you can receive various preferential treatment. After three years, the automobile weight tax that is levied at the time of the regular vehicle inspection will be charged every two years.
Standard car: When purchasing a new car (3 years) Automobile weight tax (weight tax)
The first year of a new car purchase is three years. If a new car is registered during the applicable period from May 1, 2023 to April 30, 2026 , eligible vehicles for the eco-car tax reduction will be eligible for a one-time special exemption from automobile weight tax.
Cars eligible for eco-car tax reduction
| Eligibility and requirements | tax item | Special measures |
|---|---|---|
| ・Electric vehicles ・Fuel cell vehicles ・Natural gas vehicles (compliant with 2018 exhaust gas regulations) ・Plug-in hybrid vehicles |
Environmental performance | Tax exemption |
| Weight tax (new vehicle inspection) |
duty free |
New car achievement standards
For new cars, if they meet the 2018 exhaust gas regulations by 50% and the 2020 fuel efficiency standards, or if they meet the 2030 fuel efficiency standards by 60% or more, they are eligible for eco-car tax reductions . Furthermore, for electric vehicles, if the vehicle inspection certificate is issued 15 days before the expiration date, they are also eligible for tax exemption even on the second vehicle inspection .
If a new car is registered between January 1, 2024 and April 30, 2025
| 2030 fuel efficiency standards | First vehicle inspection |
Second and subsequent vehicle inspections |
|---|---|---|
| 120% achieved | duty free | duty free |
| 90% achieved | duty free | – |
| 80% achieved | 50% reduction | – |
| 70% achieved | 25% reduction | – |
If a new car is registered between May 1, 2025 and April 30, 2026
| 2030 fuel efficiency standards | First vehicle inspection |
Second and subsequent vehicle inspections |
|---|---|---|
| Achieved 125% | duty free | duty free |
| 100% achieved | duty free | – |
| 90% achieved | 50% reduction | – |
| 80% achieved | 25% reduction | – |
| 75% achieved | Regular tax rate without reduction |
– |
Reference: Ministry of Economy, Trade and Industry
Standard automobiles: Automobile weight tax (weight tax) levied every two years after vehicle inspection
Since it is a statutory fee that is included in the vehicle inspection fee, it will be listed in the vehicle inspection fee. The amount of automobile weight tax is determined for each vehicle model. Private passenger cars are inspected every two years, while freight vehicles are inspected annually.
| Vehicle weight | Less than 13 years since new registration |
13 years have passed since the first registration |
18 years have passed since the first registration |
|---|---|---|---|
| Less than 500kg | 8,200 yen | 11,400 yen | 12,600 yen |
| 1,000kg or less | 16,400 yen | 22,800 yen | 25,200 yen |
| 1,500kg or less | 24,600 yen | 34,200 yen | 37,800 yen |
| 2,000kg or less | 32,800 yen | 45,600 yen | 50,400 yen |
| 2.500kg or less | 41,000 yen | 57,000 yen | 63,000 yen |
| 3,000kg or less | 49,200 yen | 68,400 yen | 75,600 yen |
Light vehicles: Automobile weight tax (weight tax) levied every two years for vehicle inspection
| Eco-car | Less than 13 years since new registration |
13 years have passed since the first registration |
18 years have passed since the first registration |
|---|---|---|---|
| duty free | 6,600 yen | 8,200 yen | 8,800 yen |
Other car taxes
consumption tax
When purchasing a new car, a 10% consumption tax is levied on the vehicle price. If you purchase a car with a base price of 3,000,000 yen, the consumption tax will be 300,000 yen, which is a large amount to pay.
Also, if you drive a car, you will need to fill it with gas, and consumption tax is also levied on the cost of gas. If the cost of gas is 5,000 yen, the consumption tax will be 500 yen.
gasoline tax
The gasoline tax was established at a time when road construction was an urgent need, and was gradually established through legal reforms such as the establishment of a specific revenue source for the gasoline tax in 1953, along with the complete revision of the Road Act in 1952 and the establishment of the toll road system. Currently, the tax is 53.8 yen per liter of gasoline.
*We will check the latest automobile information and make changes if there are any errors.
summary
This time, I’ve put together a summary of various car-related taxes. Currently, car prices are inevitably rising, considering rising prices and the increasing availability of safety features. In addition, while Japanese car taxes are being reduced, they still seem to be a significant financial burden. I’m sure the tax system will be revised again as electric and fuel cell vehicles become more widespread. To protect Japan’s automobile industry, I hope the tax burden will be reduced, lowering the barrier to purchase.
*The price difference is only for the changed parts. Please consider it as a guideline.
Ministry of Internal Affairs and Communications
