Work out the luxury car tax on a new car at the ATO's 2026–27 thresholds.
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Key facts
- Luxury car tax is 33% of the part of a car's value over the LCT threshold: $80,809 in 2026–27, or $91,661 for fuel-efficient vehicles.
- The formula is (LCT value − threshold) × 10 ÷ 11 × 33%: the 10/11 takes the GST out of the amount over the threshold.
- The LCT value is the retail price including GST, dealer delivery and accessories bought with the car, but not stamp duty, registration or CTP insurance.
- ATO example: an $88,000 car attracts $2,157.30 of LCT, so the buyer pays $90,157.30 before on-road costs.
- The dealer pays LCT to the ATO and includes it in the price.
LCT by car value (2026–27)
| LCT value | Other vehicles | Fuel-efficient vehicles |
|---|---|---|
| $80,000 | $0.00 | $0.00 |
| $90,000 | $2,757.30 | $0.00 |
| $100,000 | $5,757.30 | $2,501.70 |
| $120,000 | $11,757.30 | $8,501.70 |
| $150,000 | $20,757.30 | $17,501.70 |
| $200,000 | $35,757.30 | $32,501.70 |
| $300,000 | $65,757.30 | $62,501.70 |
Common questions
How much is luxury car tax?
33% of the GST-exclusive amount over the threshold. On a $120,000 car it's $11,757.30; on $150,000, $20,757.30 (2026–27 thresholds).
What is the luxury car tax threshold for 2026–27?
$80,809 for most cars and $91,661 for fuel-efficient vehicles. The thresholds are indexed each financial year.
Does stamp duty count towards the LCT value?
No. Stamp duty, registration, compulsory third party insurance, extended warranties, financing costs and service plans are left out; GST, dealer delivery and accessories bought with the car are included.
See also the novated lease calculator and the car FBT calculator.
Sources: ATO luxury car tax rate and thresholds and working out the LCT on a sale. Checked 22 October 2026.