Mie Prefecture's EV (electric vehicle) subsidy works in a somewhat unusual way: a "municipal top-up scheme." Instead of paying individuals directly, the prefecture adds funds on top of EV purchase subsidies run by municipalities — a two-tier arrangement. In other words, you benefit only if your municipality runs a program; if it does not, there is no prefectural benefit either. In FY2026, 9 municipalities participate (Inabe City, Yokkaichi City, Taki Town, Odai Town, Tamaki Town, Watarai Town, Taiki Town, Owase City, and Kihoku Town), and Tsu City is not included. Start by checking whether your municipality is on the list.
Think of Mie's EV Subsidies as a "Three-Story Building"
CEV subsidy (the main player)
A national subsidy available to individuals and companies alike. In FY2026 it offers up to 1.3 million yen for EVs — the largest amount by far.
The prefecture "tops up" municipal subsidies
Not a direct payment to individuals: a two-step scheme in which the prefecture adds funds to municipal subsidies. Only residents of participating municipalities benefit.
9 municipalities participate; Tsu City is excluded
Run in 9 municipalities: Inabe, Yokkaichi, Taki, Odai, Tamaki, Watarai, Taiki, Owase, and Kihoku. Watarai Town offers 100,000 yen.
[National] CEV Subsidy FY2026 (the Main Player)
"Up to 1.3 million yen" is a cap. The actual amount is set per model based on the vehicle's environmental performance and other criteria. Applications close once the budget runs out, and subsidized vehicles carry a mandatory holding period of 4 years in principle — disposing of the car earlier may require repayment. Check the exact subsidy amount for your model 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.
[Mie Prefecture] Not a Direct Payment to Individuals — a "Top-Up" of Municipal Subsidies
Mie Prefecture's "Electric Vehicle Introduction Subsidy" is a scheme in which the prefecture adds funds on top of EV, PHV, and FCV purchase subsidies run by municipalities — it is not a program individuals apply to the prefecture for directly. Subsidy amounts and requirements differ by participating municipality.
In FY2026, the participating municipalities are the 9 local governments of Inabe City, Yokkaichi City, Taki Town, Odai Town, Tamaki Town, Watarai Town, Taiki Town, Owase City, and Kihoku Town. The prefectural capital, Tsu City, is not included. For residents of non-participating municipalities, the national CEV subsidy (up to 1.3 million yen for EVs) and automobile tax reductions are the main forms of support.
[Municipalities] Watarai Town Offers 100,000 Yen; Yokkaichi Focuses on Equipment
| Municipality | Status in FY2026 |
|---|---|
| Watarai Town | 100,000 yen for EVs and FCVs (PHVs and HVs excluded). Requirements: individual residing in the town, new vehicle, and having received the national CEV subsidy. Application deadline: January 29, 2027 |
| Yokkaichi City | One of the participating municipalities. Its program centers on V2H and charging equipment (Smart City Promotion Subsidy). Check the city's official site for details on vehicle subsidies |
| Tsu City | Not included in the prefecture's list of participating municipalities. No vehicle subsidy for individuals could be confirmed |
If you live in one of the 9 participating municipalities, first check with your municipal office or its official website for the subsidy amount, application status, and the prefectural top-up portion. The catch with the Mie scheme is that both amounts and deadlines differ by municipality.
Also Check EV "Taxes" (Automobile Tax Reductions)
Separately from subsidies, EVs are exempt from the environmental performance excise of the automobile tax (the FY2026 tax reform has also decided to abolish the excise itself), and the following year's automobile tax (ownership component) is reduced by roughly 75% under the green tax 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 is due as long as your total occasional income for the year, including other items, is 500,000 yen or less. Combining national and local subsidies usually stays within this limit, but be careful about the total in a year when you receive multiple large subsidies. Business use is treated differently — consult a tax accountant or other professional.
What to Do Today
What to do today
- Check the national CEV subsidy amount for your candidate model in the Next Generation Vehicle Promotion Center's list (the amount for your specific car, not the "up to 1.3 million yen" headline)
- Search "EV subsidy" on your municipality's official website; in Mie, confirm whether your municipality is among the 9 participants and check the remaining budget and application status
- Work backward from your delivery date to build an application schedule (check three things: registration date, application deadline, and budget exhaustion)
FAQ
Q. I live in Tsu City. Can I receive the prefectural subsidy?
A. No. Mie Prefecture's subsidy is a top-up of municipal programs, and Tsu City is not among the participating municipalities for FY2026. The national CEV subsidy (up to 1.3 million yen for EVs) and automobile tax reductions are the main forms of support.
Q. If I live in a participating municipality, do I automatically get the prefectural top-up?
A. The prefectural top-up is built into the amount granted when you apply for the municipal subsidy. You do not need to apply to the prefecture separately, but amounts and requirements differ by municipality, so check each municipality's guidelines.
Q. What are the conditions for Watarai Town's subsidy?
A. It pays 100,000 yen to individuals residing in the town who purchase a new EV or FCV, on the condition that they have received the national CEV subsidy. PHVs and HVs are excluded.
Q. Could more municipalities participate next fiscal year?
A. It is possible. The list of participating municipalities changes each fiscal year, so check the latest list on the prefecture's official page at the start of the fiscal year (April).
References (Sources)
Note: 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.