The 2026 Luxury Tax Is Coming
Beginning January 1, 2026, a new state luxury tax will apply to high-end goods exceeding certain price thresholds.
What will be taxed?
8% luxury tax will be applied to the selling price of vehicles exceeding over $100,000. The threshold for this tax is set to increase by 2% each year.
Why It Matters?
The new luxury tax could add a significant cost to purchases above certain thresholds, which means you'll need to account for that additional expense ahead of time to avoid surprises. Timing will play a major role in how much you end up paying. If you're considering a luxury purchase, buying before the tax takes effect might help you avoid the added cost entirely.
Whether you're planning a luxury purchase now or weighing your options ahead of the 2026 tax changes, our knowledgeable staff at Land Rover of Tacoma is ready to answer your questions. We'll walk you through the details and ensure you're fully informed every step of the way.
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