is there a luxury tax on cars

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  • Do you have to pay luxury car tax on a used car?

  • Do you have to pay luxury car tax on a used car? The ATO states luxury car tax is only applied to eligible vehicles under two years old. If the car is being sold for a second time, it will only attract LCT if it has increased in value. Given most cars depreciate over time, this is an unlikely scenario.

  • What states have luxury car taxes?

  • Other states that apply taxes on the value of the car include Minnesota, California, Wyoming and Louisiana. A luxury car tax is a tax applied to the purchase of automobiles whose cost exceeds a certain threshold.

  • How is luxury car tax calculated in Australia?

  • How is luxury car tax calculated in Australia? To work out the amount of luxury car tax payable, the ATO applies this formula : (LCT value 鈥?LCT threshold) 10 11 33%

  • What is LCT tax on a car?

  • Luxury car tax Luxury car tax (LCT) is a tax on cars with a GST-inclusive value above the LCT threshold. LCT is imposed at the rate of 33% on the amount above the luxury car threshold. LCT is paid by businesses that sell or import luxury cars (dealers), and also by individuals who import luxury cars.

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