Japan to Tax EVs/PHEVs by Weight from 2028
The Japanese government and ruling parties have announced an amendment to the automobile tax system. Starting from May 2028, an additional tax will be imposed on private electric vehicles (EVs), with the tax amount increasing with vehicle weight, levied on top of the automobile weight tax during inspections. This move aims to make EVs, which are heavier and impose greater loads on roads than gasoline-powered cars, bear corresponding responsibilities for road maintenance funding.The new tax will be incorporated into the 2026 tax reform outline finalized recently.

Plug-in hybrid vehicles (PHEVs) are also within the taxation scope, with the tax rate set at half of that for EVs. New cars are exempt from the tax during initial inspections, and a decision on whether to tax commercial EVs such as taxis and trucks will be made after the end of 2026. The specific tax amount will be determined later with reference to the average gasoline tax burden of gasoline car owners.