As a result of their 1995 disqualification, Toyota Team Europe were not allowed to compete in this year's championship, so only three works teams contested the championship.
The drivers' world championship was won by Tommi Mäkinen in a Mitsubishi Lancer Evo 3, ahead of Colin McRae and Carlos Sainz.
The manufacturers' title was won by Subaru.
The 1996 championship was contested over nine rounds in Europe, Africa, Asia, South America and Oceania.
Each works team had to nominate up to three drivers 30 days before each event; only two best placed nominated drivers were eligible to score points for the manufacturers' championship.