When buying an EV in Kanagawa Prefecture, the key point to note is that the "prefectural" purchase subsidy does not cover privately owned personal cars. Kanagawa's subsidy centers on commercial-use EVs (buses, taxis, trucks, rental cars, etc.) in fiscal 2026 (Reiwa 8) as well, so if an individual is buying a personal car, they should combine the national CEV subsidy (nationwide, up to ¥1.3 million) with the subsidy of the municipality where they live. The prefecture also subsidizes charging equipment for apartment buildings and similar shared housing. This article organizes the approach for both individuals and businesses, along with the tax treatment of subsidies received.
① The national CEV subsidy is common nationwide, at up to ¥1.3 million for an EV (¥580,000 for a mini EV, ¥850,000 for a PHEV). Personal cars are also covered[METI (in Japanese)].
② Kanagawa Prefecture's purchase subsidy covers commercial-use EVs (buses, taxis, trucks, rental cars, etc.), and there is a "Commercial-use EV Introduction Cost Subsidy" in fiscal 2026 as well. Personal cars are not covered by the prefecture[Kanagawa Prefecture (in Japanese)].
③ If an individual is buying a personal car, think in terms of the national subsidy + the municipality where you live. Some municipalities have purchase subsidies (for example, Oi Town accepts applications on a first-come basis from April 1 in fiscal 2026)[Oi Town (in Japanese)].
④ The prefecture also provides subsidies for the cost of installing normal charging equipment at shared housing such as apartment buildings (detached houses are not covered).
⑤ A subsidy received for a personal car is temporary income (ichiji shotoku). If the combined total of the national and municipal subsidies exceeds the ¥500,000 special deduction, a tax return may be required[National Tax Agency (in Japanese)].
How the Kanagawa "prefectural" subsidy is positioned
In Kanagawa Prefecture's efforts to promote EVs and FCVs, the prefectural purchase subsidy targets commercial-use EVs. The "Commercial-use EV Introduction Cost Subsidy," which supports the introduction of EV buses, EV taxis, EV trucks, EV rental cars, and the like, is in place in fiscal 2026 as well, and personal cars used privately by individuals are not covered by the prefectural subsidy[Kanagawa Prefecture (in Japanese)]. As for charging infrastructure, there is a subsidy for the cost of installing normal charging equipment at shared housing such as apartment buildings, and here too detached houses are not covered. Because commercial-use subsidy amounts vary greatly by vehicle type and scale, please check with Kanagawa Prefecture's official site on whether you are eligible and for how much.
If an individual is buying an EV: think in terms of the national subsidy + the municipality
Since a personal car is not covered by the prefectural subsidy, check the following two things.
- The national CEV subsidy: common nationwide, up to ¥1.3 million for an EV. Check the eligible vehicle types and subsidy amounts at the Next Generation Vehicle Promotion Center.
- Municipal subsidies: Search your municipality's site for "EV" or "electric vehicle purchase subsidy." Some municipalities have purchase subsidies for individuals. For example, Oi Town accepts applications on a first-come basis from April 1 in fiscal 2026 for its subsidy toward the cost of purchasing electric vehicles and the like[Oi Town (in Japanese)]. For whether other cities such as Yokohama City and Kawasaki City have programs and their amounts, check each city's official site.
Municipal subsidies have limited budgets and may stop accepting applications partway through the fiscal year. Before buying, also confirm the order of the national and municipal procedures (for example, do not place your order before the grant decision). For how to research the nationwide picture, see the Guide to EV subsidies in all 47 prefectures.
For businesses: the introduction subsidy for commercial-use EVs
If you are introducing an EV for a business such as freight transport, taxis, or rental cars, Kanagawa Prefecture's "Commercial-use EV Introduction Cost Subsidy" (fiscal 2026) may be usable. The eligible vehicles, subsidy amounts, and application periods differ by vehicle type and scale, so check the requirements with Kanagawa Prefecture's official site. You can also consider combining it with the national CEV subsidy, and designing it together with the charging equipment subsidy.
Taxes on subsidies received
- Personal car: This is temporary income. The taxable amount is one-half of what remains after subtracting the ¥500,000 special deduction from the total of your temporary income for the year. If the combined total of the national and municipal subsidies exceeds ¥500,000, a tax return may be required[National Tax Agency No.1490 (in Japanese)].
- Commercial use: A sole proprietor records it as miscellaneous revenue of business income, and a corporation records it as gross revenue (ekikin). If you use compressed entry (asset reduction accounting; for blue-return filers and corporations), you can record the vehicle's acquisition cost minus the subsidy amount, holding down the tax in the year received[National Tax Agency No.5765 (in Japanese)].
For whether you need to file, see Filing a tax return for side jobs, and for treating business vehicles as expenses, see 10 gray areas for what counts as an expense.
FAQ
Can I get Kanagawa Prefecture's subsidy for buying a personal car?
Kanagawa Prefecture's "prefectural" purchase subsidy centers on commercial-use EVs (buses, taxis, trucks, etc.), and personal cars are not covered by the prefecture. As an individual, think in terms of combining the national CEV subsidy (nationwide, up to ¥1.3 million for an EV) with the subsidy of the municipality where you live. Whether it exists and the amount differ by municipality, so check the official sites.
Where should an individual apply?
Apply for the national CEV subsidy to the Next Generation Vehicle Promotion Center, and for a municipal subsidy to the municipality where you live. For example, Oi Town accepts applications on a first-come basis from April 1 in fiscal 2026. For whether other cities such as Yokohama City and Kawasaki City have programs and their amounts, check each city's official site.
Can Kanagawa Prefecture's charging equipment subsidy be used for a detached house?
The prefecture's subsidy for the cost of installing normal charging equipment covers shared housing such as apartment buildings, and detached houses are not covered. For charging equipment at a detached house, check the national subsidy or a municipal program.
Is tax charged on the subsidy?
For a personal car it is temporary income, and the taxable amount is one-half of what remains after subtracting the ¥500,000 special deduction from the total of your temporary income for the year. If the combined total of the national and municipal subsidies exceeds ¥500,000, a tax return may be required. Commercial use is recorded as miscellaneous revenue / gross revenue, and the tax can be deferred by using compressed entry (asset reduction accounting).
Reference links (sources)
- Kanagawa Prefecture's efforts to promote EVs and FCVs (commercial-use EVs and charging equipment): Kanagawa Prefecture — Efforts toward the spread of EVs and FCVs (in Japanese)
- Example of a municipality (Oi Town, subsidy toward the cost of purchasing electric vehicles and the like): Oi Town (in Japanese)
- The national CEV subsidy (up to ¥1.3 million for an EV, etc.): METI (in Japanese) / Next Generation Vehicle Promotion Center (in Japanese)
- Tax treatment of subsidies: National Tax Agency No.1490 Temporary income (in Japanese) / National Tax Agency No.5765 Compressed entry for subsidies, etc. (in Japanese)
* The subsidies of Kanagawa Prefecture and its municipalities differ in amount, requirements, deadlines, and budget, and change from year to year. This article is general information; for the confirmed amount and the latest acceptance status, check the official sites of Kanagawa Prefecture and the municipality where you live. For individual tax decisions, consult a tax office or a tax accountant.