Neuville, 36, started the final rally of the 13-race series with a 25-point lead over Tanak, so he needed to score just six points from the weekend to claim the drivers’ title.
His hopes suffered a setback on Friday afternoon when a turbo problem saw him and co-driver Martijn Wydaeghe drop to 15th.
They recovered to climb the leaderboard before Tanak’s stage 17 error handed his Hyundai team-mate the title for the first time after 15 years of trying.
Five times a runner-up, at 5,533 days Neuville’s wait for the world crown is the longest in WRC history.
“I’m feeling great to be honest. We worked for that for so long, so super happy. We always give it all but this year we were rewarded for it,” said Neuville.
“I don’t have the words, but I just want to thank everybody who was part of it, who supported, and us and the team as well.”
