For fiscal year 2026 (Reiwa 8), Tokushima Prefecture shows a two-tier structure: among the most generous in Japan for businesses, while no municipal vehicle subsidy for individuals could be confirmed. The prefectural subsidy is large in amount — 400,000 yen for EVs, 250,000 yen for kei EVs, 350,000 yen for PHVs, 600,000 yen for FCVs, and 150,000 yen for V2H — but eligibility is limited to businesses such as small and medium-sized enterprises and NPOs, and registration in the "Electric Power Supply Supporter" program is mandatory. For individuals, the national CEV subsidy (up to 1.3 million yen for EVs) is the core. Here is how to proceed for businesses and individuals respectively.
Think of Tokushima's EV Subsidies as a Two-Story Structure
CEV subsidy (the main player)
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.
No municipal vehicle subsidy for individuals could be confirmed
Tokushima City, Anan City, and Naruto City list only V2H equipment subsidies. For individuals' vehicles, the national CEV subsidy is the core.
Businesses only, but among the top amounts
Adds 400,000 yen for EVs, 250,000 yen for kei EVs, 350,000 yen for PHVs, and 600,000 yen for FCVs on top of the national subsidy. However, limited to businesses such as SMEs and NPOs.
[National] CEV Subsidy under the FY2025 Supplementary Budget (registrations from April 2026; the main pillar)
"Up to 1.3 million yen" is a cap. The actual subsidy is set 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, in principle, 4 years; selling within that period may require repayment. Check the published amount for your specific vehicle on the Next Generation Vehicle Promotion Center's list.
For the full picture of the CEV subsidy and the nationwide situation, see our guide to EV subsidies in all 47 prefectures.
[Tokushima Prefecture] Among Japan's Best for Businesses — 400,000 Yen for EVs, 250,000 Yen for Kei EVs on Top
Tokushima Prefecture's "ZEV Adoption Acceleration Subsidy for Strengthening Regional Resilience" adds fixed amounts of 400,000 yen for EVs, 250,000 yen for kei EVs, 350,000 yen for PHVs, 600,000 yen for FCVs, and 150,000 yen for V2H on top of the national subsidy — among the highest levels at the prefectural tier. However, eligibility is limited to SMEs in the prefecture (including sole proprietors), social welfare corporations, medical corporations, NPOs, and the like; ordinary individuals are not eligible. Receiving the METI subsidy and registering in the "Tokushima Electric Power Supply Supporter registration program" (cooperation in supplying power during disasters) are mandatory. Applications for the ZEV portion are accepted until January 31, 2027 (first come, first served).
Sole proprietors are included in the eligible parties, so this is a major opportunity for introducing an EV for business use.
[Municipalities] No Vehicle Subsidy for Individuals Could Be Confirmed
Listings by major cities such as Tokushima City, Anan City, and Naruto City cover only V2H equipment subsidies, and no vehicle purchase subsidy for individuals has been officially confirmed (there is secondary information about 150,000 yen in Anan City and Naruto City, but it cannot be officially confirmed for FY2026). For individuals' vehicles, the practical approach in Tokushima is to build around the national CEV subsidy (up to 1.3 million yen for EVs) plus the automobile tax reductions.
Also Check the EV "Taxes" (Automobile Tax Reductions)
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 (type-based levy) is reduced by roughly 75% under the Green Taxation Special Measure. 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 arises if your total occasional income for the year, including other items, stays within 500,000 yen. Even combining national and municipal subsidies usually stays within this, 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 similar professional.
FAQ
Q. Should I apply for the national CEV subsidy alone?
A. Yes. The main money is the national CEV subsidy (up to 1.3 million yen for EVs, 580,000 yen for kei EVs), and it can be used regardless of whether municipal subsidies exist. Applications close once the budget runs out, and on September 4 the secretariat said it expects intake to end around early to late December 2026. Applying early is the safe move.
Summary
- For individuals, the main source is the national CEV subsidy, up to ¥1.3 million for an EV. Applications are expected to close around early to late December Reiwa 8 (2026).
- Tokushima Prefecture's subsidy is ¥400,000 for an EV, ¥250,000 for a mini EV, ¥350,000 for a PHV, ¥600,000 for an FCV and ¥150,000 for V2H. It is limited to businesses such as small and medium enterprises, including sole proprietors, and NPOs.
- The prefectural subsidy requires receiving the Ministry of Economy, Trade and Industry subsidy and registering as a power supply supporter. Applications for ZEVs are accepted until January 31, 2027, first come, first served.
- Tokushima City, Anan City and Naruto City only subsidize V2H equipment, and no vehicle subsidy for individuals could be officially confirmed.
- The environmental performance levy was abolished on March 31, Reiwa 8 (2026). The following year's annual vehicle tax is reduced by about 75% under the green special provision.
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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.