Under the supplementary budget enacted on June 24, the Tokyo subsidy has already been raised to up to ¥1.3 million for EVs (up to ¥1.15 million for PHEVs). It applies to vehicles first registered on or after July 1, 2026 (vehicles registered on or before June 30 remain at up to ¥1 million for EVs; see the main text for details). Applications for the increased amount are already being accepted.
Bottom line: up to ¥2.6 million combining national and Tokyo subsidies (for vehicles registered on or after July 1, 2026)
If you buy an EV in Tokyo in fiscal 2026 (Reiwa 8), you can receive up to ¥1.3 million from the national CEV subsidy, up to ¥1.3 million from the Tokyo ZEV subsidy, for a combined total of up to ¥2.6 million in support. However, receiving the full amount comes with conditions such as "manufacturer rating" and "solar power / renewable energy / V2H," and you can lose out if you don't understand the application order, the retention obligation, and the budget-cap limit. This article explains the whole picture accurately.
▶ If you want to check right away the subsidy amount for the model you plan to buy, you can do so with the Cool Net Tokyo subsidy amount simulation (in Japanese).
This article is based on Tokyo Metropolitan Government press releases (March 30 and June 24, 2026), the official Cool Net Tokyo website, the Ministry of Economy, Trade and Industry's information on the Reiwa 7 supplementary CEV subsidy, and the official website of the Next Generation Vehicle Promotion Center (as of July 7, 2026). Subsidy amounts and eligible models may change, so always check the official websites before applying.
The whole picture: a two-tier structure of "national" and "Tokyo"
The subsidy systems for buying an EV consist of two independent programs — the "national (METI) CEV subsidy" and the "Tokyo ZEV subsidy" — and you can receive both at the same time. Both are pay-later schemes in which you apply after purchase.
National CEV subsidy
Up to ¥1.3 million For EVs (standard/compact)Mini (kei) EVs: up to ¥580,000
PHEVs: up to ¥850,000
Tokyo ZEV subsidy
Up to ¥1.3 million EVs (including renewable-energy / solar add-ons)For vehicles first registered on or after July 1, 2026
For vehicles registered April 1–June 30: up to ¥1 million
Maximum combined amount (EV)
Up to ¥2.6 million National ¥1.3 million + Tokyo ¥1.3 millionFor PHEVs, national ¥850,000 + Tokyo ¥1.15 million
FCVs (fuel cell vehicles): up to ¥3.75 million
① National CEV subsidy (Reiwa 7 supplementary / fiscal 2026)
The forecast published by the Next Generation Vehicle Promotion Center on 4 September 2026 is that applications will close between early and late December 2026[Next Generation Vehicle Promotion Center]. Applications are taken first come, first served by the date the form arrives, and close on the day before the budget is reached, so they may close earlier than forecast. The Tokyo subsidy is applied for only after the national grant decision, so once the national program closes, the Tokyo subsidy can no longer be used either. It is safest to be ready to apply during November.
The "Clean Energy Vehicle Introduction Promotion Subsidy (CEV subsidy)" established by METI is administered through the Next Generation Vehicle Promotion Center. From new-vehicle registrations on or after January 1, 2026, the subsidy cap for EVs was raised from ¥900,000 to ¥1.3 million[METI (in Japanese)], and applications have been accepted since March 31, 2026 (ending as soon as the budget runs out).
| Vehicle category | Subsidy cap | How the amount is set |
|---|---|---|
| EV (standard/compact) | Up to ¥1.3 million | Assessed on vehicle performance, charging-infrastructure development, supply-chain efforts, and so on. Set individually per model within the cap |
| Mini (kei) EV | Up to ¥580,000 | Same as above |
| PHEV (standard/compact) | Up to ¥850,000 | Same as above |
| FCV (fuel cell vehicle) | Up to ¥1.5 million | Same as above |
Adjustment for high-priced vehicles
Vehicles with a manufacturer's suggested retail price of ¥8.4 million or more excluding tax (¥9.24 million or more including tax) are treated as "high-priced vehicles," and the subsidy is adjusted to 0.8× (a 20% reduction). The same standard applies to both the national and Tokyo programs.
② Tokyo ZEV vehicle purchase subsidy (Reiwa 8)
The window is the Tokyo Metropolitan Environment Public Service Corporation (Cool Net Tokyo). The application period is April 30, 2026 to March 31, 2027, and if the budget cap is reached, acceptance ends even within the period[Cool Net Tokyo (in Japanese)]. The amount after the increase under the supplementary budget enacted on June 24, 2026 (up to ¥1.3 million for EVs) applies to vehicles first registered (first inspected) on or after July 1, 2026, and acceptance began that same day.
The four-layer structure of the subsidy
The Tokyo subsidy is made up of four layers: "base amount," "power-supply function add-on," "manufacturer-based bonus," and "additional bonus." The figures below are for vehicles first registered on or after July 1, 2026.
| Component | EV/PHEV | FCV | Condition |
|---|---|---|---|
| ① Base amount | ¥200,000 | ¥1.4 million | The vehicle must be eligible for the CEV subsidy (¥100,000 for vehicles registered April 1–June 30) |
| ② Power-supply function add-on | +¥100,000 | +¥100,000 | Equipped with an external power supply / V2H, or an onboard AC output of 1,500 W or more |
| ③ Manufacturer-based bonus | Up to +¥600,000 | Up to +¥400,000 | Sales-record / lineup rating (up to ¥200,000) + GX-efforts rating (up to ¥400,000) |
| ④ Additional bonus | Up to +¥400,000 | Up to +¥350,000 | Renewable-energy contract / solar power / charge-discharge equipment (separate application) |
| Total cap | EV: up to ¥1.3 million PHEV: up to ¥1.15 million FCV: up to ¥2.25 million | ||
Manufacturer-based bonus amounts (component ③)
The manufacturer-based bonus is set by Tokyo based on its assessment of each manufacturer's sales record, lineup, and GX (decarbonization) efforts. Because the GX-rating portion was raised under the supplementary budget, the amount differs depending on whether the first registration date is on or before June 30, 2026, or on or after July 1. Examples for major manufacturers are as follows.
| Manufacturer | Bonus (registered on or after July 1) | ①②③ total (EV) |
|---|---|---|
| Toyota, Nissan, Honda, Lexus Highest rating | ¥600,000 | ¥900,000 |
| Peugeot, Jeep, etc. | ¥550,000 | ¥850,000 |
| Mitsubishi, Tesla | ¥500,000 | ¥800,000 |
| Mazda | ¥450,000 | ¥750,000 |
| BMW, MINI, Subaru, etc. | ¥400,000 | ¥700,000 |
| Suzuki | ¥250,000 | ¥550,000 |
| VW, etc. | ¥200,000 | ¥500,000 |
| BYD, Hyundai, Porsche, Land Rover Lowest rating | ¥100,000 | ¥400,000 |
* For vehicles registered on or before June 30, 2026, the bonus is ¥200,000 lower for each (e.g., ¥400,000 for the Toyota group; no change for Suzuki, VW, BYD, etc.).
Amounts may be revised even partway through the fiscal year. Before applying, always confirm the exact amount for the model you plan to buy with the Cool Net Tokyo subsidy amount simulation (in Japanese) and the official manufacturer-by-manufacturer list.
Details of the additional bonus (④)
Solar power installation
100% renewable-energy electricity contract
V2H / V2B charge-discharge equipment
Public rapid-charging equipment
Bonuses for renewable-energy contracts, solar power, V2H, and the like must be applied for at the same time as your grant application to Tokyo. You cannot apply for an increase after the grant decision. It is important to confirm before purchase whether you meet the bonus conditions. Note also that Tokyo has a separate subsidy for the installation of solar power and V2H itself. For details, see the Tokyo solar, storage battery, and V2H subsidy guide.
The application flow
The national CEV subsidy and the Tokyo ZEV subsidy are applied for separately. As a rule, you first obtain the grant decision for the national CEV subsidy, then apply to Tokyo.
In principle within one month of registration
Within one year of first registration
It also helps to know how long payment takes. For the national CEV subsidy, it takes roughly 3 to 4 months from the arrival of your application to the grant decision (longer if there are deficiencies)[Next Generation Vehicle Promotion Center, August 6, 2026 (in Japanese)], and normally 2 weeks from the dispatch of the grant decision notice to the transfer of funds[Same center, application guidelines (plan changes and property disposal) (in Japanese)]. Payment timing and the amount you must repay if you part with the car partway through are covered in detail in When is the EV subsidy paid, and how the repayment is calculated.
Some dealers apply for the subsidy on your behalf as part of a "subsidy-included price." In this case, the subsidy belongs to the dealer and is not received directly by the buyer. Before signing a contract, always confirm the "handling method of the subsidy."
Receipt simulations
These are sample calculations when the conditions are met (all assume first registration on or after July 1, 2026). The actual subsidy differs by model, manufacturer rating, and individual conditions.
Important points to note
-
The Tokyo subsidy amount changes with the first registration date (July 1, 2026 is the dividing line)
The increased amount (up to ¥1.3 million for EVs) applies only to vehicles first registered on or after July 1, 2026. Vehicles registered April 1–June 30 get up to ¥1 million for EVs, and you cannot receive the difference later. -
The application deadline is within one year of first registration
The Reiwa 8 acceptance period (through March 31, 2027) is also an upper limit. Acceptance can end within that period once the budget cap is reached, so apply promptly after purchase. -
The retention obligation is 4 years for private vehicles under both the national and Tokyo programs
Selling or transferring the vehicle within 4 years of first registration makes the subsidy subject to repayment[Next Generation Vehicle Promotion Center, property disposal (in Japanese)]. Tokyo also treats changing the "base of use" on the vehicle inspection certificate to outside Tokyo as "disposal"; without notification, you must repay the full amount plus an additional charge at an annual rate of 10.95%[Cool Net Tokyo, "About disposal" (in Japanese)]. If you plan to move, notify Tokyo in advance. -
Used cars and leased cars are not eligible (as a rule)
The Tokyo ZEV subsidy covers new cars only. For leased cars, there is a separate program for businesses.
Tax treatment of the subsidy: subsidies you receive are taxable
When you receive a subsidy, that amount becomes taxable income. Whether it is received in the name of a subsidy or a gift, it is in principle subject to tax.
| Recipient category | Income category | Key points of treatment |
|---|---|---|
| Individual (buying a private car) | Occasional (temporary) income | Effectively tax-free within the ¥500,000 special deduction for occasional income. If the combined national + Tokyo amount exceeds ¥500,000, the excess is taxable (one-half is included in income)[National Tax Agency No.1490 (in Japanese)] |
| Sole proprietor (business vehicle) | Miscellaneous revenue in business income | Recorded as miscellaneous revenue in the year the subsidy is received. Using compression accounting (for blue-return filers) allows deferral of tax |
| Corporation (business vehicle) | Gross revenue (miscellaneous income) | Recorded as gross revenue in the fiscal year the subsidy is received. Applying compression accounting for national treasury subsidies and the like allows deferral of tax |
Occasional income has an annual special deduction of ¥500,000. If the combined EV purchase subsidy (national + Tokyo) fits within ¥500,000, the tax is zero, but now that the subsidies have expanded, cases exceeding ¥500,000 are ordinary. Even so, only one-half of the excess is included in income, so the burden is relatively light. [Calculation example] If you receive national ¥1.3 million + Tokyo ¥1.3 million = ¥2.6 million: (¥2.6 million − ¥500,000 special deduction) × 1/2 = ¥1.05 million is included in your total income. If you have other occasional income in the same year (such as maturity proceeds from insurance), it is combined for the calculation. Even a salaried worker may need to file a tax return, so please be careful.
Sources and official information
- Tokyo Metropolitan Government — Partial increase of the EV/PHEV subsidy cap (press release, June 24, 2026) (in Japanese)
- Tokyo Metropolitan Government — Reiwa 8 ZEV vehicle purchase subsidy, application acceptance from April 30 (press release) (in Japanese)
- Cool Net Tokyo — Project to Promote the Adoption of FCVs, EVs, PHEVs and Other Electric Vehicles (official) (in Japanese)
- Tokyo — EV/PHEV/FCV vehicle subsidy amount simulation (Cool Net Tokyo official) (in Japanese)
- Ministry of Economy, Trade and Industry — Reiwa 7 supplementary "Clean Energy Vehicle Introduction Promotion Subsidy" (official) (in Japanese)
- Next Generation Vehicle Promotion Center — Guide to the Reiwa 7 supplementary CEV subsidy (acceptance status, how to apply) (in Japanese)
- Next Generation Vehicle Promotion Center (search for CEV subsidy eligible models and amounts) (in Japanese)
- National Tax Agency — Tax Answer No.1490 Occasional income (in Japanese)
- National Tax Agency — Tax Answer No.5765 Compression accounting for subsidies and the like (in Japanese)
* The content of this article is for informational purposes and is not tax or application advice. Subsidy amounts and conditions may change. Always check the official websites before applying.
