Stamp duty is a mandatory, state-based tax is applied when a vehicle’s registration is either newly issued or transferred into a new owner’s name.
This is a state based tax and therefore the rates and calculation methods vary depending on where you are in Australia.
Depending on the value of the vehicle you wish to purchase you could potentially be up for thousands of dollars in addition to the purchase price.
So you will have to budget for this, and factor it into your car loan calculations when deciding how much to borrow.
In this article, we will summarise the stamp duty calculations for every state for basic passenger vehicles and conduct a comparison so you can see exactly who is the biggest (and lowest) taxing state in Australia.
What Variables Influence Your Stamp Duty Bill?
All states have tiers based on the durable value of the vehicle being purchased. This is the easy part.
Unfortunately, states also select a range of other variables to determine what rate should be applied to the transaction.
The specific factors that influence the final duty amount typically include:
- Vehicle Value (Dutiable Value): The higher the car’s price, the higher the duty generally is, often subject to progressive or luxury tiers.
- Vehicle Type: Some states differentiate between passenger cars and commercial vehicles (like utes or vans) or offer different rates for motorcycles.
- New or Used: Some of these variables will apply differently if the car is new or used. ACT is the best example of this where there are many tiers for new cars based on emissions and price. Whereas used cars are either EV or non-EV.
- Environmental Performance: Several jurisdictions, most notably the ACT and Victoria, adjust rates based on the vehicle’s C02 emissions or classification as a low or zero-emission vehicle (ZEV). This incentivises ‘greener’ vehicle choices.
Stamp Duty Calculations for Each State
We have consolidated the stamp duty calculation for vehicles in each state below in alphabetical order.
As you can see, there is very little consistency across each jurisdiction.
All figures are correct at the time of publishing.
Australian Capital Territory (ACT)
The ACT has a heavy focus on environmental performance and will apply a stamp duty rate that depends on emissions and the purchase price.
The tiers are also split by whether the vehicle sale is a new or used car.
EVs will attract the lowest stamp duty cost and set the bottom of the range cited below. The top will be your big emitters and light vehicles.
Let’s start with new vehicles:
- Below $45,000: $2.50 to $4.53 per $100.
- $45,000 to $80,000: $1,125 to $2,038.50 plus $4 to $7.81 per $100 above $45,000.
- Above $80,000: $2,525 to $4,772 plus $8 per $100 above $80,000.
This can be a significant additional cost when buying a new vehicle, which will often be in that middle price tier.
The used vehicle scale is a bit different. There are only two emission tiers which is zero emissions (EVs) and any emissions (everything else).
However, the same price tiers apply.
- Below $45,000: $2.50 to $3.17 per $100.
- $45,000 to $80,000: $1,125 to $1,426.50 plus $4 to $5.62 per $100 above $45,000.
- Above $80,000: $2,525 to $3,393.50 plus $8 per $100 above $80,000.
For the stamp duty table check the ACT Revenue Office.
New South Wales (NSW)
NSW have a relatively simple system that is tiered based on the purchase price of the vehicle.
The threshold for a low or high value vehicle being $45,000.
The rates for each category are below:
- Lower Value Vehicles: A flat rate of $3 per $100 of the vehicle’s value.
- Higher Value Vehicles: A higher flat rate of $1,350 plus an additional $5 per $100 above the $45,000 threshold.
For example, a vehicle sold for $50,000 would attract a stamp duty cost of $1,600, consisting of:
- $1,350 for the first $45,000; plus,
- $250 being 5% of the additional $5,000 of the purchase price.
You can check the most up to date information at Service NSW.
Northern Territory (NT)
The stamp duty rates in the NT are much simpler to calculate is a flat rate of $3 per $100 of the dutiable value.
However, there are also incentives for EV owners with stamp duty concessions available up to $1,500 on vehicles worth up to $50,000.
Learn more at the NT Department of Treasury and Finance.
Queensland (QLD)
Tiers are determined by engine type in QLD with distinctions between hybrids, EVs, and then the number of cylinders your vehicle has.
The price based tier is at a much more generous $100,000 compared to the other states and the majority of vehicles attract a relatively low charge.
- Hybrids and EVs: $2 per $100 below $100,000, and $4 per $100 above.
- 1 to 4 Cylinders: $3 per $100 below $100,000, and $5 per $100 above.
- 5 to 6 Cylinders: $3.50 per $100 below $100,000, and $5.50 per $100 above.
- 7 or more Cylinders: $4 per $100 below $100,000, and $6 per $100 above.
The full table can be found on the QLD Government website.
South Australia (SA)
The stamp duty rates in South Australia appear as they were set back when the car was invented, and remained unchanged since.
There are four tiers based on the dutiable value, with the top rate kicking in at only $3,000.
Maybe there are an abundance of cheap cars being sold in South Australia… Who knows!
- Below $1,000: $1 for every $100, with a minimum of $5.
- $1,000 to $2,000: $10 plus $2 for every $100 above $1,000.
- $2,000 to $3,000: $30 plus $3 for every $100 above $2,000.
- Above $3,000: $60 plus $4 for every $100 above $3,000.
I think you can safely assume that you will be in that top bracket.
For more information, check out the rates page at Revenue SA.
Tasmania (TAS)
Tasmania did have some exemptions for EVs but these expired in 2023. So the rates are now consistent across all passenger vehicle types.
While there appears to be a large increase in the stamp duty rate for vehicles between $35,000 and $40,000 in Tasmania, the total amount payable actually works out to be consistent and there is no disadvantage.
- Below $600: $20 flat rate.
- $600 to $35,000: $3 for every $100 of the dutiable value.
- $35,000 to $40,000: $1,050 plus $11 for every $100 above $35,000.
- Above $40,000: $4 for every $100 of the dutiable value.
For more information check out the State Revenue Office of Tasmania.
Victoria (VIC)
Victoria’s also has a tiered based system with higher rates at much higher thresholds.
The majority of passenger vehicles will fall within the lowest tier which includes all vehicles up to over $80,000.
However, the cost escalates quickly in the higher tiers:
- $0 to $80,567: $8.40 per $200
- $80,567 to $100,000: $10.40 per $200
- $100,000 to $150,000: $14.00 per $200
- Above $150,000: $18.00 per $200
You can check the most up to date information at the State Revenue Office of Victoria.
Western Australia (WA)
WA uses a tiered percentage rate that is based on the purchase price of the vehicle, with an unnecessarily complicated middle tier.
The top and bottom is straightforward to calculate – albeit expensive at that top tier! But we will need to provide an example for the middle.
- Up to $25,000: 2.75% of the dutiable value.
- $25,000 to $50,000: subject to the following calculation R% = [2.75 + ((dutiable value – 25,000)/ 6,666.66)] rounded to 2 decimal places
- Above $50,000: 6.5% of the dutiable value.
If that mid-tier left you confused, hopefully an example with numbers helps.
- Dutiable value of $40,000.
- 2.75 + (($40,000 – $25,000) / 6,666.66
- 2.75 + 2.25 = 5.00% stamp duty
You are probably better off just using the WA Government stamp duty calculator for this one!
State by State Comparison
The table below will compare the stamp duty payable on a $30,000 used car purchase in every state and territory in Australia.
For the sake of the example, it is a 4 cylinder passenger vehicle (thanks QLD for making that necessary).
This will provide some insight for how the states compare.
However, as you will see in the state specific rates summary below the outcomes can differ significantly depending on the dutiable value of the vehicle.
Does it come as any surprise that Victoria is the highest taxing state?
Moving on…
Budgeting for Stamp Duty on Your Vehicle Purchase
As you saw in our comparison the complexity of these rates can mean a very different outcome on your vehicle purchase depending on where you are.
Some additional tips to consider before finalising the transaction:
- Make sure you budget beyond the price of the vehicle. You may still have rego costs in addition to stamp duty to factor in.
- Use the official calculators on the relevant state based website to ensure you have the most up to date stamp duty rates.
- If you are buying an EV double check the current incentives being offered in your state to see if you qualify for an exemption or a lower rate.
Understanding how motor vehicle stamp duty is applied in your state is essential for sound financial planning when buying a car. Don’t leave this cost as a last-minute shock—do your homework first!
Implications When Financing Your Car Purchase
If you are taking out a car loan to finance your new car you will have to factor in the stamp duty expense in two ways.
The total transaction value must be within budget. Whether that is your loan amount, or the loan plus a deposit you plan to contribute to the sale.
A second consideration is the loan to value ratio of the loan if you plan on financing the vehicle plus all associated costs.
Lenders will have a set limit for how much money they will lend compared to the value of the asset that will be used as security.
This can be anywhere up top 180% with some lenders (but not all).
Which sounds high, but if you plan to include establishment fees, risk fees, insurance costs, and your stamp duty, then you can see how this adds up quickly.
Our team of brokers can help you with these calculations before you commit to a purchase. Get in touch below.
Conclusion
While stamp duty only makes up a small portion of your car purchase it is still a significant amount of money.
If you are in Victoria, even more so!
But, the only things sure in life are death and taxes. At least now you know exactly what you need to pay and can budget accordingly.
