Annual Vehicle Tax (自動車税) in Japan
KeikoThis is a tax you pay every year, and it's one of the biggest financial advantages of kei cars. While regular cars are taxed based on engine displacement — ranging from ¥25,000 to ¥110,000 per year — kei cars have a flat rate.
Here are the rates as of 2026:
Kei cars
| Type | Standard rate | 13+ years old |
|---|---|---|
| Commercial | ¥5,000 | ¥6,000 |
| Private use | ¥10,800 | ¥12,900 |
Regular cars (private passenger vehicles)
| Engine displacement | Annual tax |
|---|---|
| Up to 1,000cc | ¥25,000 |
| 1,001–1,500cc | ¥30,500 |
| 1,501–2,000cc | ¥36,000 |
| 2,001–2,500cc | ¥43,500 |
| 2,501–3,000cc | ¥50,000 |
| 3,001–3,500cc | ¥57,000 |
| 3,501–4,000cc | ¥65,500 |
| 4,001–4,500cc | ¥75,500 |
| 4,501–6,000cc | ¥87,000 |
| Over 6,000cc | ¥110,000 |
One thing worth knowing: older vehicles are taxed at a higher rate, since they're considered to have a greater environmental impact. For private kei cars, the tax goes up by around 20% after 13 years from initial registration. Hybrid and electric vehicles are exempt from this surcharge.
There's also a separate vehicle weight tax (自動車重量税 / jidōsha jūryōzei) to factor in. For regular passenger cars, this tax increases in steps for every 0.5 tonnes of vehicle weight — so heavier cars cost more. Kei cars, on the other hand, pay a flat rate regardless of weight. It's paid in advance rather than annually: three years' worth when you first register a new car, then two years at a time with each subsequent inspection.
