Motor vehicle and car stamp duty explained
Buying a car and not sure how much is stamp duty on a car? Here’s what you need to know.
Key takeaways
- Car stamp duty is a state-imposed tax required when buying a new or used vehicle in Australia.
- Stamp duty rates differ by state or territory and are calculated based on factors like vehicle value, type, and environmental rating.
- Exemptions apply in certain situations, such as inheriting a vehicle, divorce settlements, or for eligible war veterans and disabled individuals.
What is motor vehicle stamp duty?
Stamp duty is a tax you need to pay whenever you buy a car, regardless of whether you're buying a new or used vehicle. But why do you need to pay it? Stamp duty is designed to cover the cost of transferring registration of a vehicle, so you’ll need to factor this expense into your calculations regardless of whether you buy your next set of wheels from a dealer or a private seller.
Car stamp duty is defined and calculated by state and territory governments around Australia, so you may know it by a slightly different name depending on where you live. When you see terms like motor vehicle duty, vehicle registration duty and motor vehicle stamp duty, they all refer to the same thing.
How much stamp duty do I need to pay?
The stamp duty payable on a new or used vehicle varies from state to state. Read on for a state-by-state breakdown of the cost of buying a car where you live.
New South Wales
When you apply to register a vehicle in NSW, or transfer registration, you’ll need to pay motor vehicle duty. Duty is calculated on the full value of a new vehicle, or the sale price or market value (whichever is greater) of a used vehicle.
The current motor vehicle duty rates in NSW are shown in the table below:
| Value | Duty payable |
|---|---|
| Under $45,000 | $3 per $100 value (3%) |
| $45,000 or more | $1,350 + $5 per $100 (5%) value |
Queensland
The duty payable varies depending on the value of the vehicle and whether you're buying new or used, as per the table below.
| Type of vehicle | Duty rate |
|---|---|
| Up to $100,000—$2 for each $100, or part of $100 More than $100,000—$4 for each $100, or part of $100 | |
| Up to $100,000—$3 for each $100, or part of $100 More than $100,000—$5 for each $100, or part of $100 |
| Up to $100,000—$3.50 for each $100, or part of $100 More than $100,000—$5.50 for each $100, or part of $100 |
| Up to $100,000—$4 for each $100, or part of $100 More than $100,000—$6 for each $100, or part of $100 |
Victoria
In Victoria your stamp duty is different depending on whether you're buying new or used, and the type of vehicle.
The following numbers are current as of January 2025. Vehicle value thresholds may be adjusted regularly.
| Vehicle type | Vehicle market value | Dutiable rate |
|---|---|---|
| Green passenger car | All values | $8.40 per $200 or part thereof |
| Primary producer passenger car | All values | $8.40 per $200 or part thereof |
| New non-passenger motor vehicles (i.e. not previously registered in Victoria or elsewhere) | All values | $5.40 per $200 or part thereof |
| Non-passenger motor vehicles* previously registered in Victoria or elsewhere (i.e. being re-registered to a new owner) | All values | $8.40 per $200 or part thereof |
| Used non-passenger motor vehicle (i.e. the transfer of a used vehicle) | All values | $8.40 per $200 or part thereof |
| Other passenger car | $0-$80,567 | $8.40 per $200 or part thereof |
| $80,567.01-$100,000 | $10.40 per $200 or part thereof | |
| $100,000.01-$150,000 | $14.00 per $200 or part thereof | |
| More than $150,000 | $18.00 per $200 or part thereof |
Australian Capital Territory
In the ACT, vehicles are categorised and taxed based on their environmental performance.
| Performance rating | Description | CO2 emissions per km |
|---|---|---|
| AAA* | Zero emissions vehicle | 0 |
| AA* | Environmental leading edge | 1-65 |
| A* | Environmental leading edge | 66-130 |
| B | Models with significantly above-average environmental performance | 131–175 |
| C | Models with average environmental performance | 176–220 |
| D | Models with below-average environmental performance | 221 and above |
* Note prior to 1 July 2024, these were included within a single rating, Category A.
Duty amounts payable - from January 2025
| Vehicle | Duty amount payable for vehicles valued below $ 45,000 | Duty amount payable for vehicles valued at $45,000 or more |
|---|---|---|
| New and used Category AAA New Category AA New Category A Used eligible hybrid Used eligible PHEV | $ nil | $ nil |
| New Category B New motorcycle (other than a Category AAA vehicle) | $1 for every $100, or part of $100, of the dutiable value. | $450 plus $2 for every $100, or part of $100, of the dutiable value in excess of $45,000. |
| Non-rated vehicles (other than a used ZEV/Category AAA) | $3 for each $100, or part of $100, of the dutiable value. | $1,350 plus $5 for every $100, or part of $100, of the dutiable value in excess of $45,000. |
| New Category C | $3.17 for every $100, or part of $100, of the dutiable value. | $1,426.50 plus $5.62 for every $100, or part of $100, of the dutiable value in excess of $45,000. |
| New Category D | $4.53 for each $100, or part of $100, of the dutiable value. | $2,038.50 plus $7.81 for every $100, or part of $100, of the dutiable value in excess of $45,000. |
Duty amounts payable – before 1 July 2024
| Vehicle | Duty amount payable for vehicles valued below $ 45,000 | Duty amount payable for vehicles valued at $45,000 or more |
|---|---|---|
| A rated ZEV (new & used) Used eligible hybrid Used eligible PHEV | $ nil | $ nil |
| B rated New non-on-ZEV motorcycle | $1 for every $100, or part of $100, of the dutiable value. | $450, plus $2 for every $100, or part of $100, of the dutiable value in excess of $45,000. |
| Non-rated vehicles (other than used ZEV, used eligible hybrid or used eligible PHEV) | $3 for every $100, or part of $100, of the dutiable value. | $1,350, plus $5 for every $100, or part of $100, of the dutiable value in excess of $45,000. |
| C rated | $3.05 for each $100, or part of $100, of the dutiable value. | $1,370.50, plus $5.11 for every $100, or part of $100, of the dutiable value in excess of $45,000. |
| D rated | $4.25 for each $100, or part of $100, of the dutiable value. | $1,910.60, plus $6.82 for every $100, or part of $100, of the dutiable value in excess of $45,000. |
Western Australia
Vehicle licence duty in WA is paid to the Office of State Revenue. It is calculated as a percentage of a vehicle’s dutiable value and the following rates apply to vehicles with a gross mass of 4.5 tonnes or less.
Heavy vehicles with a gross mass over 4.5 tonnes are taxed at a flat 3% of dutiable value, to a maximum of $12,000.
The dutiable value is the manufacturer's price or the reasonable open market price of a used car.
| Vehicle value | Duty payable |
|---|---|
| Up to $25,000 | 2.75% of dutiable value |
| $25,000 - $50,000 | R% of the dutiable value, where R = [2.75 + ((dutiable value - 25,000)/ 6,666.66)] rounded to 2 decimal places |
| Over $50,000 | 6.5% of dutiable value |
Northern Territory
In the NT, motor vehicle stamp duty is simply 3% of the dutiable value for all passenger vehicles, but the dutiable value might vary, based on whether it's an arm's length transaction or a non arm's length transaction.
- Arm's length transaction. This is when the buyer and seller have independent interests. For example, a car dealer or previous owner selling to a member of the public. The vehicle's sale value is used to calculate dutiable value.
- Non-arm's length transaction. This is when the buyer and seller share interests. For example, if they're related or work for the same business. The vehicle's market value is used to calculate dutiable value.
- Sale value. The purchase price of the car, including all fitted accessories and applicable discounts.
- Market value. The reasonable value of the car on the open market, rather than the amount paid for it.
South Australia
In South Australia, different stamp duty rates apply to commercial and non-commercial vehicles:
- Commercial vehicle. According to the Motor Vehicles Act 1959, a commercial vehicle is defined as a motor vehicle constructed or adapted solely or mainly for the carriage of goods. For example, utes, vans, and other heavy vehicles would be classed as "commercial vehicles".
- Non-commercial vehicles. All vehicles that do not fall into the above category are classified as "non-commercial vehicles".
Commercial
| Vehicle value | Duty payable |
|---|---|
| $1,000 or less | $1 for every $100 or part of $100, with a minimum of $5 payable in all cases |
| $1,000 - $1,999 | $10 + $2 for every $100, or part of $100 over $1,000 |
| $2,000+ | $30 + $3 for every $100, or part of $100 over $,2000 |
Non-commercial
| Vehicle value | Duty payable |
|---|---|
| $1,000 or less | $1 for every $100 or part of $100, with a minimum of $5 payable |
| $1,000 - $1,999 | $10 + $2 for every $100, or part of $100 over $1,000 |
| $2,000 - $3,000 | $30 + $3 for every $100, or part of $100 over $2,000 |
| $3,000+ | $60 + $4 for every $100, or part of $100 over $3,000 |
Tasmania
Vehicle stamp duty in Tasmania is based on the vehicle's value on the market:
- $0 - $600: A flat $20
- $600 - $35,000: $3 per $100 market value (3%)
- $35,000 - $40,000: A flat $1,050 plus $11 per $100, or part thereof, over $35,000
- over $40,000: $4 per $100 or part thereof (4%)
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When will I not have to pay car stamp duty?
There are some situations when you will not be required to pay any stamp duty on the transfer of ownership of a vehicle. For example, no stamp duty is payable if:
- A vehicle is left to you in a will
- A vehicle is awarded to you as part of a divorce settlement
- Your vehicle has previously been registered in another state or territory and you have already paid interstate duty
- You’re an eligible war veteran
- The vehicle is to be used to transport a disabled, handicapped, incapacitated or injured person, or someone in a wheelchair
In NSW, you may be also be exempt from paying stamp duty if you are a DVA pensioner and meet any of the following criteria:
- You receive a disability pension of at least 70%
- You have an Intermediate, Totally and Permanently Incapacitated (TPI) or Extreme Disablement Adjustment (EDA) pension
- You have been assessed under the Military Rehabilitation and Compensation Act 2004 and received 50 or more impairment points
Exemptions and duty reductions will vary by state or territory, so if you think you might be eligible for an exemption, contact the revenue office in your state or territory for more details.
If you hold a valid pension or concession card, you may be eligible for other vehicle registration exemptions, such as motor vehicle tax and other registration fees, but will generally still need to pay stamp duty.
Picture: Shutterstock
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