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 "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 |
The figures above are only "caps." The actual subsidy is set individually per model by the Next Generation Vehicle Promotion Center and may differ from the cap. Before applying, check the eligible models and subsidy amounts on the official website of the Next Generation Vehicle Promotion Center (in Japanese).
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.
Due to Tokyo's manufacturer rating, even for the same EV the subsidy (①②③ total) ranges widely, from ¥900,000 for major domestic makers down to ¥400,000 for BYD, Hyundai, Porsche, and the like. It is important to make your purchase decision considering not only the vehicle price but also the difference in subsidy. Because manufacturer ratings can change every year (and even mid-year), check the Cool Net Tokyo official website for the latest information.
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
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 amount after the increase under the supplementary budget (up to ¥1.3 million for EVs) applies only to vehicles first registered (first inspected) on or after July 1, 2026. Vehicles registered April 1–June 30, 2026, are at the pre-increase amount (up to ¥1 million for EVs), and you cannot later receive the difference. If your delivery/registration timing is near, always confirm the registration date. -
First-come, first-served within the budget cap
The Tokyo ZEV subsidy ends acceptance once the budget cap is reached. Applications for Reiwa 8 began on April 30, 2026, and acceptance for the increased portion (the supplementary budget) also began on July 1, 2026. There have been cases in past fiscal years where acceptance ended due to the budget running out, so we recommend applying as soon as possible after purchase. -
The application deadline is within one year of first registration
The Tokyo subsidy requires application within one year from the date of first registration (or first inspection). The Reiwa 8 acceptance period (through March 31, 2027) is also an upper limit. Once the deadline passes, you can no longer apply. -
Retention obligation and prohibition of unauthorized disposal
If you receive the Tokyo subsidy, there is a retention obligation for a set period (in principle 3 or 4 years, depending on the vehicle category). Not only selling or transferring the vehicle, but also changing the "base of use" on the vehicle inspection certificate to outside Tokyo is deemed "disposal." If you dispose of it without notification, in addition to repaying the full subsidy, an additional charge at an annual rate of 10.95% is imposed. Prior notification to Tokyo is required. -
The national CEV subsidy also has a retention obligation (in principle 3 or 4 years)
The national CEV subsidy also has a retention obligation (in principle 3 or 4 years, depending on the model)[Next Generation Vehicle Promotion Center (in Japanese)]. If you sell within the period, you may be required to repay all or part of the subsidy. You must satisfy both the national and Tokyo retention obligations. -
Used cars and leased cars are not eligible (as a rule)
The Tokyo ZEV subsidy covers new cars only (vehicles first registered on or after April 1 of Reiwa 8). Used EVs and certified used cars are not eligible. For leased cars, there is a separate program for businesses. -
Being a vehicle eligible for the national CEV subsidy is a prerequisite
The Tokyo ZEV subsidy has, as a precondition for application, that the vehicle is eligible for the national CEV subsidy. Vehicles not eligible for the CEV subsidy cannot be applied for to Tokyo either. Check the list of eligible models before purchase.
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.
If a sole proprietor (blue-return filer) or a corporation buys an EV used for business, compression accounting can be applied to the amount corresponding to the subsidy. Because you depreciate using, as the book acquisition cost, the amount after subtracting the subsidy from the acquisition cost, you can defer the tax burden of the year you received it to subsequent years[National Tax Agency No.5765 (in Japanese)].
Summary
Subsidy systems change from time to time depending on the budget and policy situation. This article is based on information as of July 7, 2026, but before applying, always check the latest information on the official websites below.
Do this today
- Check this fiscal year's application acceptance status and remaining budget on the official Cool Net Tokyo page
- For the models you are considering, write down the subsidy amounts from Tokyo and from the national program (CEV subsidy)
- Ask the dealer whether the timing of first registration straddles the date the subsidy amounts change
More actions: the Take-Home Boost Checklist.
FAQ
Can I receive both the Tokyo and the national subsidies?
The national (CEV) subsidy and the Tokyo subsidy can be used together. For vehicles first registered on or after July 1, 2026, an EV can receive up to ¥1.3 million from the national program plus up to ¥1.3 million from Tokyo, for a combined total of up to ¥2.6 million. Because the actual amount changes by model and conditions, confirm the latest figures with the official information from Cool Net Tokyo and the Next Generation Vehicle Promotion Center.
Is a car registered before June 2026 also eligible for the increased ¥1.3 million?
No. The Tokyo increased amount applies to vehicles first registered (first inspected) on or after July 1, 2026. Vehicles registered April 1–June 30, 2026, are at the pre-increase amount (up to ¥1 million for EVs), and you cannot later receive the difference as an additional payment.
Is there a retention obligation for the subsidy?
Yes. For both the national and Tokyo programs, selling or disposing of the vehicle within a set period (in principle 3–4 years) makes you subject to repayment. In Tokyo, moving the base of use on the vehicle inspection certificate to outside Tokyo is also treated as disposal, so be careful about the timing of replacing your car or moving.
Can an individual receive it too? When do I apply?
Individuals and businesses with an address in Tokyo are eligible. Applications for Reiwa 8 are being accepted, but there is an acceptance period and a budget cap, and it ends once the budget limit is reached. Check the official acceptance status before purchase and application.
Is the subsidy for an EV used in a business taxed?
A subsidy you receive is included in a corporation's gross revenue or a sole proprietor's total revenue and is taxable. National treasury subsidies and the like applied to the acquisition can defer tax through compression accounting.
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.