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2026-03-31Traffic

🚗 Vehicle Environmental Performance Tax Abolished! Up to ¥90,000 Savings

Ends March 31, 2026 — Buying a car after April saves money

0%
New Rate
¥9
10K max saved
3%
Old Max Rate
4/1
Day After

What's changing?

The "Environmental Performance Levy" charged on vehicle purchases (which replaced the old acquisition tax) will be fully abolished as of March 31, 2026. This means savings of up to ¥90,000 when buying new or used cars. The levy ranged from 0-3% based on fuel efficiency.

📊 Tax rates being abolished

EVs / Fuel cell vehiclesTax-free (unchanged)
Meets 120% of 2030 targetTax-free → Abolished
Meets 90% of 2030 target1% → Abolished
Meets 60% of 2030 target2% → Abolished
Others3% → Abolished

👥 Who's affected?

  • Everyone buying a new or used car after April 2026
  • Foreigners planning to buy a car in Japan (any visa type)
  • Biggest benefit for those considering gasoline cars
  • Already-owned vehicles unaffected (one-time purchase tax)

💰 Estimated savings

VehicleSavings
Standard gasoline car (¥2M)~¥60,000
Luxury/SUV (¥3M)~¥90,000
Hybrid (good fuel economy)~¥20,000-30,000
Electric vehicleNo change (already tax-free)

💡 Key points to know

1Buying after April 2026 saves money — no rush to buy by March
2Environmental levy abolished but other vehicle taxes (weight tax, etc.) continue
3Confirm "environmental performance levy" is removed from dealer quotes
4Foreigners registering cars in Japan get the same benefit

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