Luxury car tax on EVs explained
Luxury car tax (LCT) is 33% of the amount a car's price goes over a threshold. For EVs and other fuel-efficient cars the threshold is $91,661 in 2026–27, so a $150,000 EV includes about $17,502 of LCT. EVs priced over the threshold also miss out on the novated lease fringe benefits tax exemption.
How luxury car tax works
- It applies to new cars (and cars under two years old) sold above the threshold. The dealer pays it and it's built into the price you see.
- The rate is 33% of the amount over the threshold, worked out on the GST-exclusive amount: LCT = 33% × (price − $91,661) ÷ 1.1.
- Fuel-efficient cars (using 3.5 L/100 km or less, which includes every EV and most plug-in hybrids) get the higher $91,661 threshold. Other cars use a lower threshold.
- The thresholds are updated each July.
How much LCT you pay
| Car price (incl. GST) | Amount over threshold | Luxury car tax | Share of price |
|---|---|---|---|
| $100,000 | $8,339 | $2,502 | 2.5% |
| $150,000 | $58,339 | $17,502 | 11.7% |
| $220,000 | $128,339 | $38,502 | 17.5% |
LCT in the EVs we track
Approximate, from each car's starting price before on-road costs.
| EV | From | Approx. LCT in the price |
|---|---|---|
| LDV eT60 | $92,990 | $399 |
| Kia EV9 | $97,000 | $1,602 |
| MG Cyberster | $99,900 | $2,472 |
| BMW iX4 | $103,900 | $3,672 |
| Mercedes-Benz C-Class electric | $105,700 | $4,212 |
| LDV Mifa 9 | $106,000 | $4,302 |
| Volvo EX90 | $106,990 | $4,599 |
| Mercedes-Benz GLC electric | $112,200 | $6,162 |
| Hyundai Ioniq 5 N | $115,000 | $7,002 |
| Hyundai Ioniq 6 N | $115,000 | $7,002 |
| Zeekr 009 | $115,900 | $7,272 |
| Polestar 3 | $116,700 | $7,512 |
| Hyundai Ioniq 9 | $119,750 | $8,427 |
| Ford F-150 Lightning | $120,990 | $8,799 |
| Porsche Macan Electric | $129,800 | $11,442 |
| Genesis Electrified GV70 | $132,800 | $12,342 |
| Mercedes-Benz EQE SUV | $136,600 | $13,482 |
| BMW iX | $142,900 | $15,372 |
| BMW i5 | $155,900 | $19,272 |
| Porsche Cayenne Electric | $167,800 | $22,842 |
| Lotus Emeya | $189,990 | $29,499 |
| Audi e-tron GT | $209,900 | $35,472 |
| Mercedes-Benz EQS | $219,900 | $38,472 |
| Porsche Taycan | $222,100 | $39,132 |
| Mercedes-Benz G 580 | $249,900 | $47,472 |
| BMW i7 | $306,900 | $64,572 |
See them all on the luxury and performance EVs page.
The bigger cost: no FBT exemption
The fringe benefits tax exemption for EVs bought through a novated lease or company car only applies to cars priced under the same $91,661 threshold. For someone salary packaging, missing out on that can cost more each year than the luxury car tax itself. A car just under the threshold can therefore work out much cheaper than one a few thousand dollars over it. From April 2027 the full exemption is proposed to apply only up to $75,000. See the novated lease guide.
Possible changes
Under the Australia–EU free trade agreement, the government has proposed a higher $120,000 threshold for eligible zero-emission cars made in Europe. It needs new laws to take effect, so check whether it's in force before relying on it.
More: checklist, calculators, questions and more guides
Buying an EV checklist
Work out your real driving needs, what to check on the test drive, the running costs to compare and the paperwork before you sign. 2 A4 pages.
Calculators for this
Common questions
What is the luxury car tax threshold for EVs in 2026?
$91,661 for 2026–27, the threshold for fuel-efficient vehicles, which includes all electric cars. It's updated each July.
How much luxury car tax is on a $150,000 EV?
About $17,502: 33% of the amount over the $91,661 threshold, worked out on the GST-exclusive amount.
Do EVs pay luxury car tax?
Yes, if they're priced above $91,661. Below that, there's no luxury car tax, and the car can also qualify for the novated lease FBT exemption.
More guides
More in Money and tax
You might also like
The EV Pick Monthly
The month's new cars, prices, battery breakthroughs and power deals for Australians, in one short email. Five-minute read, once a month.
One email a month. Unsubscribe any time. Privacy · Past issues
Best car lists
How we work it out, and our sources
Weekly cost = the car's energy use × 250 km × your electricity or fuel price, with 90% of charging at home. Prices are list prices at November 2026; check with the dealer.
- Electricity: 2026–27 default rates (AER, Victorian Default Offer, state retailers). Public charging: Sydney network prices, July 2026.
- Petrol and diesel: capital-city daily averages from state government price feeds, via FuelRadar, 12 November 2026. Diesel for Hobart, Canberra and Darwin is estimated from the national fall.
- Cars: maker figures via CarExpert, Drive, CarsGuide and EV Central. Plug-in electric range is taken as 80% of the claim.
- Servicing: published capped prices; marked as an estimate where not yet published (CarExpert comparison).
- Tyres: an EV set lasts about 35,000 km, a petrol or hybrid set 50,000 km (RACV); prices from Gridly.
- Home charger: about $2,000 installed ($1,000–$3,000). Novated leases: PwC summary.
Printed from EV Pick Australia · evpick.com.au. Prices and costs are estimates; check with the dealer. © 2026 EV Pick (T. Crouch). For personal use only; not to be copied, republished or sold without permission.
Was this page useful?
Follow EV PickNew cars and price drops in your feed
✓ You now know
- LCT is 33% of the amount over the threshold ($91,661 for EVs in 2026–27)
- EVs over the threshold also lose the novated lease FBT exemption
- A higher threshold for some European EVs has been proposed but isn't law yet
Glad this helped ☕
If EV Pick saved you time or money, a coffee helps keep it independent. Every dollar goes back into improving the site.
No pressure. EV Pick stays free either way.