Luxury Car Tax Calculator Australia

Use this calculator to work out the Luxury Car Tax (LCT) payable on a car priced above the ATO threshold. Enter the car's GST-inclusive value and whether it is fuel-efficient, and the calculator shows the LCT and how much of the price sits above the threshold.

What is Luxury Car Tax?

Luxury Car Tax is a 33% tax that applies to cars sold or imported above a set value. Importantly, it only applies to the part of the price above the threshold, not the whole car, and only to the GST-exclusive portion of that excess. Fuel-efficient vehicles get a higher threshold to encourage lower-emission cars.

The tax is usually included in the drive-away price by the dealer, but knowing the LCT component helps you understand what you are paying and compare cars either side of the threshold.

How LCT is calculated

The formula is:

LCT = (car value − threshold) × 10 ÷ 11 × 33%

The "× 10 ÷ 11" removes the GST that is already included in the excess, because LCT is charged on the GST-exclusive value. For example, a car valued at $95,000 with the 2026-27 threshold of $80,809 has $14,191 above the threshold; removing GST leaves about $12,901, and 33% of that is roughly $4,257 of LCT.

The two thresholds

There are two thresholds, indexed each year:

• Fuel-efficient vehicles: a higher threshold, for cars with low fuel consumption (including many hybrids and electric vehicles).
• All other vehicles: the standard, lower threshold.

Ticking the fuel-efficient box in the calculator applies the higher threshold, so you can see how much LCT a greener car saves. Both thresholds are indexed annually by the ATO. The standard threshold tracks the motor-vehicle purchase sub-group of the Consumer Price Index, while the fuel-efficient threshold is indexed to the broader all-groups CPI. Because they move at different rates, the gap between the two thresholds tends to widen over time, steadily increasing the tax advantage of choosing a low-emission car. Always use the thresholds published for the financial year in which the car is supplied, not the year you paid a deposit.

Who actually pays LCT?

LCT is legally payable by the business that sells or imports the car, usually the dealer, but in practice it is passed on to you in the price. If you buy privately from another individual, no fresh LCT applies because it was already paid when the car was first sold new. That is one reason near-new luxury cars can look relatively good value: the original buyer effectively absorbed the LCT hit through depreciation. If you import a car yourself, however, you become liable for the LCT directly at the border, on top of GST and any customs duty, so the calculator's figure becomes a real out-of-pocket cost rather than a line buried in a dealer's drive-away quote.

A worked example comparing two cars

Imagine you are choosing between a A$92,000 petrol SUV and a A$92,000 plug-in hybrid that qualifies as fuel-efficient. Using the 2026-27 thresholds, A$80,809 for standard cars and A$91,661 for fuel-efficient cars, the difference is striking:

• Petrol SUV: A$92,000 − A$80,809 = A$11,191 above the threshold. Remove GST (× 10 ÷ 11) to get A$10,174, then 33% gives about A$3,357 of LCT.
• Fuel-efficient hybrid: A$92,000 − A$91,661 = A$339 above the threshold. Remove GST to get A$308, then 33% gives about A$102 of LCT.

Same sticker price, but the fuel-efficient threshold saves roughly A$3,255 in tax. This is why so many buyers near the threshold gravitate toward hybrids and EVs, and why manufacturers sometimes price models just under the relevant threshold.

Common mistakes to avoid

• Applying 33% to the whole car. LCT never touches the value below the threshold, and it is charged on the GST-exclusive excess, not the full excess.
• Using the wrong threshold. Not every hybrid qualifies as fuel-efficient, the car must meet a fuel-consumption limit. Check the specific model before assuming the higher threshold applies.
• Forgetting the value definition. The LCT value generally includes GST, dealer delivery and most accessories fitted before delivery, but excludes stamp duty, registration and CTP insurance. Enter the right figure or the LCT will be off.
• Confusing LCT with total on-road cost. LCT is one line item; stamp duty and registration are separate and often larger.

Interpreting your result

The LCT figure tells you the tax embedded in the excess over the threshold, but read it alongside the drive-away price rather than in isolation. A car A$5,000 over the threshold attracts only a few hundred dollars of LCT, so chasing a model priced just under the line rarely saves as much as buyers expect once options and delivery are added back in. Where the calculator earns its keep is at the margins: when you are weighing a fuel-efficient variant against a standard one, or deciding whether an optional pack that nudges the price higher is worth the extra tax it drags in.

Assumptions and limitations

The calculator uses the current LCT rate and thresholds and treats the value you enter as the GST-inclusive car value. It does not handle GST, stamp duty, registration or dealer charges, use the Vehicle Stamp Duty and Car Loan calculators for those. Some cars (for example, certain commercial vehicles and some cars for people with disability) are exempt from LCT, and endorsed primary producers and tourism operators can claim partial refunds on eligible four-wheel drives, none of which are modelled here.

This is general information, not tax advice. Confirm the LCT on a specific purchase with the dealer or the ATO.

About This Luxury Car Tax Calculator

Use this luxury car tax calculator to get an instant, accurate estimate. The figures follow official ATO guidance and every rate and threshold is kept up to date for 2026. Adjust the inputs above to match your situation, or browse all our calculators to plan your next step.