Japanese car owners pay 656,000 yen ($4,500) in taxes over 13 years for registered vehicles, which is up to 23.4 times more than what US drivers pay.
This excessive tax burden in Japan leads to a declining car market, which contracted 7.5% in 2024, indicating potential long-term challenges for the world's third-largest auto market.
The Japan Automobile Manufacturers Association (JAMA) revealed data showing the heavy tax burden on Japanese car owners compared to drivers in other countries.
The analysis by JAMA in April 2024 highlights the significant amount of 656,000 yen that Japanese drivers of registered vehicles pay in automobile-related taxes over a typical 13-year ownership period.