TLDR

Japanese car owners pay 656,000 yen ($ 4,500) in taxes over 13 years for registered vehicles – up to 23.4 times more than US drivers pay – according to new JAMA data. This excessive tax burden contributes to Japan’s declining car market, which contracted 7.5% in 2024, signaling potential long-term challenges for the world’s third-largest auto market.

The Japan Automobile Manufacturers Association (JAMA) has released shocking comparative data that quantifies just how heavily Japanese car owners are taxed compared to their international counterparts. According to JAMA’s April 2024 analysis, Japanese drivers of registered vehicles pay a staggering 656,000 yen in automobile-related taxes over a typical 13-year ownership period – a burden that dwarfs what drivers pay in other major automotive markets.