Shimane EV Subsidies 2026: Okuizumo Pays ¥150,000

This is an English translation of our Japanese article. Rules and figures may change; the Japanese version and official sources are authoritative. For individual matters, consult a tax office or a licensed tax accountant (zeirishi).

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

1st floor: National

CEV subsidy (the main player for purchases)

A national subsidy available to both individuals and corporations. The FY2025 supplementary-budget round (registrations from April 2026) offers the largest amounts, such as up to 1.3 million yen for EVs.

2nd floor: Municipalities

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).

What about the prefecture?

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 under the FY2025 Supplementary Budget (registrations from April 2026; the main pillar)

National CEV subsidy caps (FY2025 supplementary budget; registrations from April 2026; by vehicle type)

Source: Ministry of Economy, Trade and Industry / Next Generation Vehicle Promotion Center (caps of the FY2025 supplementary-budget CEV subsidy for registrations from April 2026; these are maximums and vary by model)

"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. On September 4 the secretariat announced that it expects to stop accepting applications around early to late December 2026 (applications are taken in order of arrival, and intake ends the day before the budget is reached; secretariat notice, PDF, in Japanese). 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, the environmental performance levy of the automobile tax was abolished on March 31, 2026, and it is not charged on vehicles acquired on or after April 1, 2026 (Tokyo Metropolitan Government Bureau of Taxation, in Japanese). For EVs, 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.

Summary

Shimane Prefecture has no prefectural subsidy for individuals; it only offers loans for businesses. For the vehicle itself, the national CEV subsidy is the core.
The national CEV subsidy gives up to ¥1,300,000 for EVs registered from April 2026. Applications are expected to close around early to late December 2026 (Reiwa 8).
Matsue City has no subsidy. Okuizumo Town pays ¥150,000 for EVs and PHVs bought or leased from dealers in the town; check the fiscal year with the town.
The environmental performance levy was abolished on March 31, 2026 (Reiwa 8). The next year's automobile tax is reduced by roughly 75% under the green tax special measure.
Subsidies are treated as occasional income and are not taxed if, combined with other occasional income, they total ¥500,000 or less a year.

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.