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Car tax calculator

Luxury Car Tax Calculator

See the LCT on any car for the 2026-27 year. Enter the GST-inclusive price and pick fuel-efficient or other, and we'll show the tax, the threshold that applied and the breakdown. Free, no signup.

Free, no signup2026-27 & 2025-26Verify at ato.gov.au
Your car
The full retail price including GST, before on-road costs
$
Fuel-efficient means 3.5 L/100km or less (from 1 July 2026). Everything else is “other”.
Luxury car tax payable
$5,757.30
LCT applies to the $19,191 above the $80,809 other-vehicle threshold for 2026-27.
Car price (GST inclusive)$100,000
LCT threshold (other)2026-27 financial year$80,809
Value above the threshold$19,191
Less GST in that excessstripped out at 1/11 before the 33% applies−$1,745
Luxury car tax (33%)$5,757.30
LCT is separate from GST, stamp duty and registration, though dealers usually fold it into the drive-away price. Working out the GST on the car itself? Use the GST calculator.
2026-27 thresholds: $80,809 other, $91,661 fuel-efficient. Rate 33% on the GST-inclusive value above the threshold. Australia-wide. General information, not tax advice.
Simon Chadwick
Simon Chadwick
Founder, Orbit Money
Method: ATO luxury car tax rate and thresholdsUpdated: 14 July 2026Sources: ato.gov.au/luxury-car-tax

How luxury car tax works

Luxury car tax is a federal tax of 33% on the value of a car above the LCT threshold. It only bites on the part above the threshold, not the whole price, and it is worked out on the GST-inclusive value. The formula is (value − threshold) × 10 ÷ 11 × 33%. The 10 ÷ 11 takes the GST back out of the amount above the threshold, so you are not taxed on tax, then the 33% rate applies. There are two thresholds each year: a higher one for fuel-efficient cars and a lower one for everything else.

Thresholds for 2026-27 and 2025-26

For 2026-27 the threshold is $80,809 for other vehicles and $91,661 for fuel-efficient ones. For 2025-26 it was $80,567 and $91,387. From 1 July 2026 the definition of fuel-efficient tightened to 3.5 litres per 100km or less, halved from the old 7 L/100km rule, so a lot of hybrids that once qualified for the higher threshold no longer do. The thresholds are indexed each year, which is why they creep up a little.

LCT is not the whole drive-away price

LCT sits alongside GST, stamp duty and registration. Stamp duty and rego are state charges, LCT and GST are federal, and dealers usually fold the lot into one drive-away figure. That is why the tax is easy to miss: it is already in the price, not a line you pay separately. If you are pulling a quote apart, work out the GST with the GST calculator, then use this tool for the LCT on top.

Frequently asked questions

How is luxury car tax calculated?
Take the GST-inclusive price, subtract the LCT threshold, then apply the formula (value − threshold) × 10 ÷ 11 × 33%. The 10 ÷ 11 strips the GST out of the amount above the threshold, and 33% is the LCT rate. For example, a $100,000 other-type car in 2026-27 gives (100,000 − 80,809) × 10 ÷ 11 × 0.33, which is about $5,757.
What is the luxury car tax threshold for 2026-27?
For 2026-27 the threshold is $80,809 for other vehicles and $91,661 for fuel-efficient vehicles. LCT only applies to the value above whichever threshold fits your car, not the whole price.
What is the tax on luxury cars in Australia?
The LCT rate is 33%. It is charged only on the GST-inclusive value above the threshold, not the full price. So a car just over the threshold pays very little, and the tax grows as the price climbs.
What counts as a fuel-efficient car for LCT?
From 1 July 2026 a fuel-efficient car is one that uses 3.5 litres per 100km or less, down from the old 7 L/100km rule. Fuel-efficient cars get the higher $91,661 threshold, so LCT starts later for them.
How can I avoid luxury car tax?
The honest answer is you avoid it by staying under the threshold, or by buying a fuel-efficient car that qualifies for the higher one. Some vehicles are exempt, including certain commercial vehicles not designed mainly to carry passengers, and eligible cars for people with disability. There is no trick beyond the price and the exemptions.
Is luxury car tax the same as stamp duty and registration?
No. LCT is a separate federal tax on the car's value above the threshold. Stamp duty and registration are state charges on top. Dealers usually bundle all of them into the drive-away price, so the LCT is there even when it is not itemised.

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50/30/20 Budget Calculator
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Simon Chadwick
About the author
Simon Chadwick
Founder of Orbit Money

Simon is the founder of Orbit Money, a tool that helps people track subscriptions and recurring spend. He builds Orbit's free money calculators and writes about personal finance for UK and Australian readers.

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This tool is a guide, not tax advice.