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 |
|---|---|---|
| Kia EV9 | $97,000 | $1,602 |
| Audi Q6 e-tron | $99,900 | $2,472 |
| Volvo EX90 | $106,990 | $4,599 |
| Mercedes-Benz GLC electric | $112,000 | $6,102 |
| MG Cyberster | $115,000 | $7,002 |
| Hyundai Ioniq 5 N | $115,000 | $7,002 |
| Polestar 3 | $118,420 | $8,028 |
| Hyundai Ioniq 9 | $119,750 | $8,427 |
| Porsche Macan Electric | $128,400 | $11,022 |
| Zeekr 009 | $135,900 | $13,272 |
| BMW iX | $142,900 | $15,372 |
| BMW i5 | $155,900 | $19,272 |
| 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 |
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.
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
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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 October 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: ACCC capital-city averages, 21 October 2026.
- 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 · evpick.com.au. Prices and costs are estimates; check with the dealer.