Australia Luxury Car Tax Calculator
Estimate the Luxury Car Tax (LCT) on a car whose value is above the Australian threshold. Uses the 33% rate and the 2026-27 thresholds ($80,809 standard / $91,661 fuel-efficient).
What is this tool?
Luxury Car Tax is a 33% tax on the amount by which a car’s GST-inclusive value exceeds a threshold, with the GST removed from that excess. The threshold is higher for fuel-efficient cars (no more than 3.5 litres per 100 km since 1 July 2025). Businesses that import or sell cars above the threshold must register and pay LCT.How it works
Enter the GST-inclusive value of the car and choose whether it is fuel-efficient. LCT is 33% of the excess once the GST is removed, that is 33% × 10/11 × (value − threshold).2026-27 LCT thresholds
LCT is 33% of the amount above the relevant threshold once GST is removed from that excess. Since 1 July 2025 a fuel-efficient car is one using no more than 3.5 L/100 km (down from 7 L/100 km); it uses the higher threshold.
| Car type | Threshold, GST-inclusive (2026-27) |
|---|---|
| Other cars | $80,809 |
| Fuel-efficient (≤3.5 L/100 km) | $91,661 |
How the tax is worked out
LCT = 33% × 10/11 × (GST-inclusive value − threshold). The 10/11 factor takes the GST back out of the amount above the threshold, so the tax is not charged on tax. Only the amount above the threshold is taxed.
How to use
- Enter car value (GST-inclusive).
- Mark fuel-efficient if ≤3.5 L/100 km.
- Press Calculate for the LCT.
Frequently Asked Questions
When is LCT charged?
LCT applies when a car's GST-inclusive value is above the threshold. Below it, no LCT is payable.
Why are there two thresholds?
Fuel-efficient cars (no more than 3.5 L/100 km) get a higher threshold to encourage lower-emission vehicles.
Who pays it?
The business that sells or imports the car pays LCT to the ATO; it is normally passed on in the price.
This tool is for informational purposes only and does not constitute financial advice. Consult a qualified financial professional for advice specific to your situation.
Tips & Advice
LCT is calculated on the GST-inclusive value, not the drive-away price. Stamp duty and registration are separate state charges.Related Tools
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Sources & References
Last reviewed: September 2026.
- Australian Taxation Office – Luxury car tax.
- Australian Taxation Office – Luxury car tax rate and thresholds.
Limitations
Uses the 2026-27 luxury car tax thresholds of $80,809 for standard cars and $91,661 for fuel-efficient vehicles, and the 33% rate applied only to the GST-inclusive value above the threshold with the GST component removed. Thresholds are indexed each 1 July. It does not model refunds for primary producers or tourism operators, the treatment of dealer-fitted options, or LCT payable by a private importer; the result is an estimate of the tax, not a quote.