Motor vehicle duty

How duty is calculated

Your motor vehicle duty depends on how much your vehicle is worth, and whether it's a passenger vehicle.

For new vehicles, the duty is calculated on the amount you paid for the vehicle, including GST.

For used vehicles, the duty is calculated on the sale price or market value, whichever is higher.

A passenger vehicle includes a:

• sedan
• station wagon
• coupe
• convertible
• four-wheel drive vehicle, with seats and windows
• two-wheel drive panel van, with seats and windows
• three-wheel drive car
• forward-control passenger vehicle
• small bus
• motor home
• snow vehicle

* Excludes motorcycles, buses for more than nine people, hearses and disability vehicles.

Use our online calculator to work out how much motor vehicle duty you will need to pay.

Market value for used vehicles

If you don’t know the market value of your used vehicle, you can find out by:

• asking a dealer
• asking your insurance company
• searching for the make, model and year of your vehicle online.

If you’re transferring the registration of a used vehicle to a new person or organisation, both you and the buyer have to write the correct market value on the back of the certificate of registration, as well as on the transfer of registration form.

The market value includes GST, unless you’re exempt from paying it.

Extended warranties and factory rebates

If a dealer gives you a factory rebate after you buy your vehicle, you must still pay duty on the full amount that you paid for the vehicle.

If you pay extra for an extended warranty on the vehicle, the extra cost won’t be included in its value.

Penalties for undervaluing a motor vehicle

We constantly check our records to make sure people pay the correct amount of duty.

If we find that you have claimed your vehicle is worth less than it is, so that you pay less duty, we'll impose a penalty, which includes:

• interest on any unpaid duty, calculated daily until you pay
• a penalty tax, which can be up to 90 per cent of the unpaid amount of duty.

Where an assessment is issued due to motor vehicle duty being underpaid due solely to an error occurring during the manual input of Service NSW's consideration/market value, interest will be remitted in full up to the due date shown on the notice of assessment. This declaration is made in accordance with the Guidelines issued pursuant to s.25(2) of the Taxation Administration Act 1996.

For further information TAA 001: Remission of Interest Guidelines

Pay your motor vehicle duty

Service NSW collects the duty on behalf of Revenue NSW.

When you buy a new vehicle, the dealer will often organise the registration for you.

If this is not the case, you can register the vehicle yourself at a Service NSW Centre.

For used vehicles, you can transfer the registration and pay the motor vehicle duty online using MyServiceNSW if:

• you are transferring the ownership of a vehicle registered in NSW
• the previous owner/seller has submitted a Notice of Disposal (NOD).

If you are not eligible to transfer the registration online, you’ll need to visit a Service NSW Centre with your documentation.

Refunds on motor vehicle duty

If you have paid duty on the registration of a motor vehicle and are eligible for a refund, you can lodge your request for refund with us. Once your request is approved, your refund will be deposited in your nominated bank account.