Motor vehicle and car stamp duty explained | Finder

Motor vehicle and car stamp duty explained

Buying a car? Here’s everything you need to know about the stamp duty that applies to your new set of wheels.

We’re reader-supported and may be paid when you visit links to partner sites. We don’t compare all products in the market, but we’re working on it!

If you’re planning on buying a new or used car, did you know that you’ll need to pay stamp duty on your purchase? Stamp duty is a tax imposed by state governments when you transfer ownership of a vehicle, so you’ll need to include it in your calculations when working out the total cost of buying a car.

However, car stamp duty is calculated differently from one Australian state or territory to the next, so where you live will affect how much duty you need to pay when buying a car.

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:

ValueDuty 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 vehicleDuty rate
  • Hybrid vehicles
  • Electric vehicles
$2 for each $100 of the vehicle's dutiable value (2%)
  • 1 to 4 cylinders
  • 2 rotors
$3 for each $100 of the vehicle's dutiable value (3%)
  • 5 or 6 cylinders
  • 3 rotors
$3.50 for each $100 of the vehicle’s dutiable value (3.5%)
  • 7 or more cylinders
$4 for each $100 of the vehicle’s dutiable value (4%)

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 at February 2019. Vehicle value thresholds may be adjusted regularly.

Vehicle typeNew or usedVehicle market valueDutiable rate
Passenger vehicleNewUnder $66,331$8.40 per $200
$66,331+$10.40 per $200
DemonstratorAny$8.40 per $200
Motorcycles and non-passenger vehiclesNewAny$5.40 per $200
All other vehiclesNew or usedAny$8.40 per $200

Australian Capital Territory

In the ACT, vehicles are categorised and taxed based on their environmental performance.

Performance ratingDescriptionCO2 emissions per km
AEnvironmental leading-edge models0–130
BModels with environmental performance that is significantly above average131–175
CModels with average environmental performance176–220
DModels with below average environmental performanceMore than 220

For vehicles $45,000 or less, duty must be paid at the following rates:

  • A-rated vehicle: no duty payable
  • B-rated vehicle: $1 for each $100, or part of $100, of the value of the vehicle
  • C-rated vehicle and non-rated vehicle: $3 for each $100, or part of $100, of the value of the vehicle
  • D-rated vehicle: $4 for each $100, or part of $100, of the value of the vehicle

For vehicles valued at more than $45,000, the following duty applies:

  • A-rated vehicle: no duty payable
  • B-rated vehicle: $450, plus $2 for each $100, or part of $100, of the value of the vehicle that is more than $45,000
  • C-rated vehicle and non-rated vehicle: $1,350, plus $5 for each $100, or part of $100, of the value of the vehicle that is more than $45,000
  • D-rated vehicle: $1,800, plus $6 for each $100, or part of $100, of the value of the vehicle that is more than $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 valueDuty payable
Up to $25,000$2.75 for each $100 of the vehicle's dutiable value
$25,001 to $50,000$2.75 for each $100 of the vehicle's dutiable value, plus an additional amount.

The formula is [2.75% + ((dutiable value - 25,000)/6,666.66)]

Over $50,000$6.50 for each $100 of the vehicle's dutiable value (6.5%)

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 valueDuty 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 valueDuty 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:

  • Up to $600: A flat $20
  • $600 to $34,999: $3 per $100 market value (3%)
  • $35,000 to $39,999: A flat $1,050 plus $11 per $100, or part thereof, over $35,000
  • $45,000 and over: $4 per $100 or part thereof (4%)

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.

Looking to buy a vehicle? Compare car loans

Data updated regularly
$
Name Product Interest Rate (p.a.) Comparison Rate (p.a.) Monthly Repayment View Details CTA
Plenti Car Loan
From
4.89%
(fixed)
5.44%
You'll receive a fixed rate from 4.89% p.a.
Borrow up to $100,000 with a Plenti Car Loan and benefit from no early repayment or exit fees.
You'll receive a fixed rate from 4.89% p.a.
Borrow up to $100,000 with a Plenti Car Loan and benefit from no early repayment or exit fees.
Loans.com.au - New and Dealer Used Car Loan
From
4.67%
(fixed)
5.22%
You'll receive a fixed rate from 4.67% p.a. based on your risk profile
Finance a new car and benefit from features such as fast approval, no ongoing fees and an optional balloon payment. Settle the loan before 30 November 2021 and enter the draw to win a $1,000 fuel gift voucher. T&Cs apply.
You'll receive a fixed rate from 4.67% p.a. based on your risk profile
Finance a new car and benefit from features such as fast approval, no ongoing fees and an optional balloon payment. Settle the loan before 30 November 2021 and enter the draw to win a $1,000 fuel gift voucher. T&Cs apply.
IMB New Car Loan
4.99%
(fixed)
5.34%
You'll receive a fixed rate of 4.99% p.a.
A low minimum borrowing amount of $2,000 that you can use to purchase a new car or one that's up to two years old.
You'll receive a fixed rate of 4.99% p.a.
A low minimum borrowing amount of $2,000 that you can use to purchase a new car or one that's up to two years old.
NRMA New Car Loan
From
4.99%
(fixed)
5.69%
You'll receive a fixed rate from 4.99% p.a.
Purchase a new or used car up to 2 years old and benefit from a fixed rate and no monthly fees. Pre-approval available within 5 business hours.
You'll receive a fixed rate from 4.99% p.a.
Purchase a new or used car up to 2 years old and benefit from a fixed rate and no monthly fees. Pre-approval available within 5 business hours.
Credit Concierge Car Loan
From
3.85%
(fixed)
4.91%
You'll receive a fixed rate of 3.85% p.a. with a comparison rate of 4.91% p.a.
Get access to over 20 providers to fund a new or used car.

You'll receive a fixed rate of 3.85% p.a. with a comparison rate of 4.91% p.a.
Get access to over 20 providers to fund a new or used car.

Wisr Secured Car Loan
From
4.74%
(fixed)
5.01%
You'll receive a personalised interest rate from 4.74% p.a. to 16.01% p.a. based on your risk profile
A flexible car loan from $5,000 - $63,000 with personalised rates and rewards for strong credit customers.

You'll receive a personalised interest rate from 4.74% p.a. to 16.01% p.a. based on your risk profile
A flexible car loan from $5,000 - $63,000 with personalised rates and rewards for strong credit customers.

OurMoneyMarket Car Loan
From
5.35%
(fixed)
5.65%
You'll receive a fixed interest rate from 5.35% p.a. to 14.99% p.a. based on your risk profile.
Borrow between $2,001 and $75,000 to finance a new or used car up to 10 years.
You'll receive a fixed interest rate from 5.35% p.a. to 14.99% p.a. based on your risk profile.
Borrow between $2,001 and $75,000 to finance a new or used car up to 10 years.
MoneyForJam Car Loan
From
3.25%
(fixed)
5.82%
You'll receive a fixed rate from 3.25% p.a. based on your risk profile
Borrow between $5,000 and $120,000 with loan terms up to 7 years to finance a new or used car. Get access to more than 40 providers.
You'll receive a fixed rate from 3.25% p.a. based on your risk profile
Borrow between $5,000 and $120,000 with loan terms up to 7 years to finance a new or used car. Get access to more than 40 providers.
CUA Secured Fixed Car Loan
6.79%
(fixed)
7.16%
You'll receive a fixed rate of 6.79% p.a.
A secured loan with a high maximum borrowing amount up to $100,000. Redraw facility and no monthly fees.
You'll receive a fixed rate of 6.79% p.a.
A secured loan with a high maximum borrowing amount up to $100,000. Redraw facility and no monthly fees.
Latitude Personal Loan (Secured)
From
5.99%
(fixed)
7.26%
You'll receive a fixed rate between 5.99% p.a. and 21.99% p.a. based on your risk profile
Lock in a competitive fixed rate when you offer security. Loan can be used for any purpose and repayments are flexible. You can check your interest rate before applying with no impact to your credit score.
You'll receive a fixed rate between 5.99% p.a. and 21.99% p.a. based on your risk profile
Lock in a competitive fixed rate when you offer security. Loan can be used for any purpose and repayments are flexible. You can check your interest rate before applying with no impact to your credit score.
Stratton Finance New Car Loan
From
3.85%
(fixed)
4.05%
You'll receive a fixed rate from 3.85% p.a. depending on the lender you are approved with
Apply for up to $250,000 and use cash or trade in a vehicle to use as a deposit. Optional balloon payment available.
You'll receive a fixed rate from 3.85% p.a. depending on the lender you are approved with
Apply for up to $250,000 and use cash or trade in a vehicle to use as a deposit. Optional balloon payment available.
SocietyOne Car Loan
From
6.99%
(fixed)
6.99%
You'll receive a fixed rate between 6.99% p.a. and 20.49% p.a. based on your risk profile
A loan from $5,000 to use for a range of purposes. Benefit from no ongoing fees and no early repayment fee.
You'll receive a fixed rate between 6.99% p.a. and 20.49% p.a. based on your risk profile
A loan from $5,000 to use for a range of purposes. Benefit from no ongoing fees and no early repayment fee.
Driva Car Loan
From
3.95%
(fixed)
5.1%
You'll receive a fixed rate from 3.95% p.a.
Borrow up to $250,000 with loan terms from 1 to 7 years. Get access to a range of lenders.
You'll receive a fixed rate from 3.95% p.a.
Borrow up to $250,000 with loan terms from 1 to 7 years. Get access to a range of lenders.
RACV New Car Loans
From
4.99%
(fixed)
5.69%
You'll receive a fixed rate from 4.99% p.a.
A larger loan of $5,000 or more to help you buy a new or used car. 5-hour pre approval available and no ongoing fees.
You'll receive a fixed rate from 4.99% p.a.
A larger loan of $5,000 or more to help you buy a new or used car. 5-hour pre approval available and no ongoing fees.
NRMA Used Car Loan
From
6.49%
(fixed)
7.19%
You'll receive a fixed rate from 6.49% p.a.
Finance a used car with NRMA and benefit from a fixed rate term and no monthly fees. Pre-approval available within 5 business hours.
You'll receive a fixed rate from 6.49% p.a.
Finance a used car with NRMA and benefit from a fixed rate term and no monthly fees. Pre-approval available within 5 business hours.
loading

Compare up to 4 providers

Picture: Shutterstock

More guides on Finder

Car Loan Offers

Important Information*
Logo for IMB New Car Loan
IMB New Car Loan

You'll receive a fixed rate of 4.99% p.a.
A low minimum borrowing amount of $2,000 that you can use to purchase a new car or one up to two years old.

Logo for Beyond Bank Low Rate Car Loan "Special Offer"
Beyond Bank Low Rate Car Loan "Special Offer"

You'll receive a fixed rate of 4.69% p.a.
Take advantage of a competitive rate, pre-approval and no early repayment fees when you finance a car under two years old.

Logo for RACV New Car Loans
RACV New Car Loans

You'll receive a fixed rate from 4.99% p.a.
A larger loan of $5,000 or more to help you buy a new or used car. 5-hour pre approval available and no ongoing fees.

Logo for NRMA New Car Loan
NRMA New Car Loan

You'll receive a fixed rate of 4.99% p.a.
Purchase a new or used car up to 2 years old and benefit from a fixed rate and no monthly fees. Pre-approval available within 5 business hours.

Ask an Expert

You are about to post a question on finder.com.au:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms of Use, Disclaimer & Privacy Policy and Privacy & Cookies Policy.
Go to site