In Shimane Prefecture for FY2026 (Reiwa 8), the prefecture offers loans only and Matsue City has no subsidy, so for the vehicle itself the national CEV subsidy (up to 1.3 million yen for EVs) is the mainstay. The unique one is Okuizumo Town: 150,000 yen for EVs and PHVs purchased from dealers within the town, a local-economy-circulation design (the fiscal-year notation is inconsistent, so confirmation is needed). Here is the practical picture.
Think of Shimane's EV Subsidies as a "Two-Story" Structure
CEV subsidy (the main player for purchases)
A national subsidy available to both individuals and corporations. For FY2026 it is the largest amount, with up to 1.3 million yen for EVs.
Matsue City: none / Okuizumo Town: 150,000 yen
Matsue City has officially answered that "only the national subsidy" applies. Okuizumo Town offers 150,000 yen limited to in-town dealers (fiscal year needs confirmation).
Prefecture: loans only, no subsidy
At the prefectural level there is only a loan program for businesses (environmental response category); there is no purchase subsidy for individuals.
[National] CEV Subsidy FY2026 (the Main Player for Purchases)
"Up to 1.3 million yen" is a cap. The subsidy amount is determined per model based on evaluations such as the vehicle's environmental performance. Applications close once the budget runs out, and subsidized vehicles carry a mandatory holding period of four years in principle; disposing of the vehicle within that period may require repayment. Check the exact subsidy amount for the car you plan to buy in the figures published by the Next Generation Vehicle Promotion Center.
For the full picture of the CEV subsidy and the situation nationwide, see our guide to EV subsidies in all 47 prefectures.
[Shimane Prefecture] No Prefectural Subsidy for Individuals (Loan Program Only)
Shimane Prefecture's support at the prefectural level consists only of loans for businesses (the environmental response category of the Machi-Hito-Shigoto Regional Revitalization Fund); there is no purchase subsidy for individuals. For the vehicle itself, the national CEV subsidy is the mainstay.
[Municipalities] Matsue City Has No Subsidy; Okuizumo Town Offers 150,000 Yen Limited to In-Town Dealers
| Municipality | FY2026 status |
|---|---|
| Matsue City | No EV purchase subsidy for individuals (the city has officially answered "only the national subsidy") |
| Okuizumo Town | 150,000 yen for town residents and in-town businesses that purchase or lease an EV or PHV from a dealer within the town (vehicles eligible for the national CEV subsidy); one vehicle per applicant. The fiscal-year notation on the page is inconsistent, so confirm the deadline and applicable fiscal year with the town |
Okuizumo Town's "in-town dealers only" condition is a design for circulating money in the local economy. If you are a town resident, check both the dealer's location and the application status before purchasing.
Also Check EV "Taxes" (Automobile Tax Relief)
Separately from subsidies, EVs are exempt from the environmental performance levy of the automobile tax (the FY2026 tax reform has also decided to abolish the levy itself), and the following year's automobile tax (by-type levy) is reduced by roughly 75% under the Green Special Provision. For details, see EV taxes and the 2026 automobile tax reform.
Are Subsidies Taxable?
EV subsidies received by individuals are treated as occasional income (ichiji shotoku). Because there is a special deduction of 500,000 yen per year, no tax applies if your total occasional income for the year, combined with other occasional income, is 500,000 yen or less. Even combining national and municipal subsidies usually stays within this range, but be careful about the total in a year when you receive multiple large subsidies. Business use is treated differently, so consult a tax accountant or other professional.
What to Do Today
What to do today
- Check the national CEV subsidy amount for your candidate model in the Next Generation Vehicle Promotion Center's list (the amount for your specific car, not "up to 1.3 million yen")
- Search "EV subsidy" on your municipality's official website; in Shimane, confirm Okuizumo Town's fiscal year, remaining budget, and application status
- Build your application schedule backward from the delivery date (check three things: registration date, application deadline, and budget exhaustion)
FAQ
Q. I live in Matsue City. What can I use?
A. Matsue City has no subsidy of its own (per the city's official answer); the national CEV subsidy (up to 1.3 million yen for EVs) and automobile tax relief are the mainstay.
Q. What are the conditions for Okuizumo Town's 150,000 yen?
A. It is 150,000 yen for town residents or in-town businesses that purchase or lease an EV or PHV (a vehicle eligible for the national CEV subsidy) from a dealer within the town. Because the fiscal-year notation on the page is inconsistent, confirm directly with the town whether applications are currently being accepted.
Q. Are there plans to launch a new prefectural subsidy?
A. As of August 2026, no information about a new purchase subsidy for individuals in Shimane Prefecture can be confirmed. Programs change by fiscal year, so we recommend checking the prefecture's and municipalities' official websites at the start of the fiscal year (April).
Q. Should I apply for the national CEV subsidy even if it is the only one?
A. Yes. The national CEV subsidy (up to 1.3 million yen for EVs, 580,000 yen for kei EVs) is the main source of money, and it can be used regardless of whether municipal subsidies exist. Applications close when the budget runs out, so applying early is the safe move.
References (Sources)
* Subsidy amounts, requirements, and application status are as of August 2026. Programs may end early depending on budget consumption. Always check the latest information on each official website before applying.