Luxury Car Tax Calculator
Work out the luxury car tax payable on a vehicle in Australia using the ATO's current thresholds and the 33% LCT rate.
Luxury car tax is charged at 33%, but only on the amount above the threshold — not on the whole price. Enter the GST-inclusive price of the car; leave out stamp duty, registration and CTP.
LCT thresholds by financial year
| Financial year | Fuel-efficient vehicles | Other vehicles |
|---|---|---|
| 2026-27 | $91,661 | $80,809 |
| 2025-26 | $91,387 | $80,567 |
| 2024-25 | $91,387 | $80,567 |
| 2023-24 | $89,332 | $76,950 |
| 2022-23 | $84,916 | $71,849 |
Source: Australian Taxation Office, luxury car tax rate and thresholds.
How luxury car tax is calculated
LCT applies when the GST-inclusive value of a car is above the LCT threshold for the year it was imported, acquired or sold. The ATO formula is (LCT value − LCT threshold) × 10/11 × 33%. The 10/11 factor strips the GST out of the amount above the threshold before the 33% rate is applied, which is why the tax is always less than a third of the excess. Because LCT is charged on the value above the threshold only, a car priced just over the limit attracts very little tax.
What goes into the LCT value
The LCT value includes:
- GST and any customs duty
- Dealer delivery charges
- Standard and statutory warranties
- Accessories, modifications and treatments fitted before delivery
It excludes:
- Stamp duty, transfer fees and registration
- Compulsory third-party insurance (CTP)
- Extended warranties and service plans
- The cost of financing the purchase
Because stamp duty is excluded from the LCT value but still payable on top, budget for it separately with our stamp duty calculator, and model the repayments on the financed amount with the car loan repayment calculator.
The fuel-efficient threshold changed in 2025
Fuel-efficient cars get a higher threshold. From 1 July 2025 a car only qualifies if its combined fuel consumption is 3.5 L/100km or less — down from 7 L/100km. That is a significant tightening: many hybrids that qualified under the old rule no longer do, which pushes them onto the lower standard threshold and can add thousands to the tax payable. Fully electric vehicles comfortably meet the limit. If you are weighing up an EV, our guide to electric vehicle car loans in Australia covers the finance side.
Frequently asked questions
What is the luxury car tax threshold for 2026-27?
$91,661 for fuel-efficient vehicles and $80,809 for all other vehicles. If the GST-inclusive value of the car is at or below the threshold that applies to it, no LCT is payable.
How is luxury car tax calculated in Australia?
Using the ATO formula (LCT value − LCT threshold) × 10/11 × 33%. An $88,000 car that is not fuel-efficient in 2026-27 exceeds the $80,809 threshold by $7,191, giving $7,191 × 10/11 × 33% = $2,157.30 of LCT.
What counts as a fuel-efficient car?
From 1 July 2025, a combined fuel consumption rating of no more than 3.5 L/100km. Before that date the limit was 7 L/100km, so fewer vehicles qualify for the higher threshold now.
Is stamp duty included in the LCT value?
No. Stamp duty, transfer fees, registration and CTP are all excluded from the LCT value, though you still pay them on top of the purchase price.
Can you avoid or claim back luxury car tax?
LCT is generally payable by the business selling or importing the car and passed on in the price. Limited exemptions and refunds exist — for example for certain primary producers and tourism operators, and some emergency vehicles. Whether one applies depends on your circumstances, so check the ATO guidance or ask your accountant.
Does LCT apply to used cars?
It can, but only where the car is less than two years old and still valued above the threshold. LCT already paid reduces the amount payable so the same value is not taxed twice. Private sales between people who are not registered for GST do not attract LCT. If you are buying privately, see our guide to finance for a private sale car.
This calculator provides estimates for general information only and is not tax or financial advice. Thresholds are those published by the ATO and are indexed each financial year. Confirm the figures that apply to your purchase with the ATO or your accountant.