1. Automobile tax / Light automobile tax
  2. Automobile weight tax
  3. Environmental performance-based tax
  4. Consumption tax

Automobile tax / Light vehicle tax

Automobile tax or light automobile tax is imposed once a year based on displacement.

Automobile weight tax

Automobile weight tax is imposed at the time of registration and automobile inspection based on the weight of the vehicle.

Environmental performance-based tax

Environmental performance-based tax is imposed at the time of purchase based on environmental performance of the vehicle.

Consumption tax

When purchasing a car, 10% of the price of the vehicle and accessories is subject to consumption tax.

Automobile tax / Light automobile tax

Automobile tax or light automobile tax is imposed on the owner of the vehicle.

The tax is calculated and paid on a monthly basis on April 1 of each year, and thereafter until March of the following year. The amount of tax varies depending on the displacement and use of the vehicle.

A tax notice is sent to the home of the car owner by the local government around early May. In principle, the deadline for payment is May 31 (except in some areas).

Payment must be made within approximately one month after the tax notice is received.

 

*Higher taxes on older vehicles

The automobile tax will increase for diesel vehicles that have been registered for more than 11 years, and for gasoline and LP gas vehicles that have been registered for more than 13 years.

The automobile tax is approximately 15% higher for diesel vehicles and 20% higher for light vehicles.

 

Automobile weight tax

It is imposed according to the weight of the vehicle.

When purchasing a new car, payment is made for three years at a time.

Payment is made at the time of registration and vehicle inspection. New cars must be inspected three years after purchase and every two years thereafter.

 

Environmental performance-based tax

 

When you buy or receive a vehicle, you must pay the automobile weight tax.

It is imposed according to the environmental loads indicated by Emission standards and Fuel efficiency achievement standards.

Among “Certified fuel-efficient and low-emission vehicles” with low environmental loads, the higher the level of achievement, the lower the tax rate, or the tax may be exempted.

 

Environmental performance-based tax is applicable regardless of whether the vehicle purchased is new or used.

 

The Environmental performance-based tax must be paid when you buy a new car or used car or when you receive a car.

 

Consumption tax

As with regular purchases, you will be charged consumption tax when you purchase a car.

Options and fees included in the various costs are also subject to consumption tax.

As of 2023 Jan, the consumption tax rate is 10%.