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Message: <blockquote data-quote="ChaseU" data-source="post: 1806501" data-attributes="member: 27690"><p><h2>How is the Luxury Tax calculated?</h2><p>The tax will be calculated as the lesser of:</p><p></p><ul> <li data-xf-list-type="ul">20% of the retail sale price above the relevant price threshold ($100,000 for vehicles and aircraft; $250,000 for vessels); or</li> <li data-xf-list-type="ul">10% of the retail sale price of the subject vehicle, aircraft, or vessel.</li> </ul><p>The way it was explained to me is that in this circumstance, if the Raptor R is $147,650 you will either pay 20% on everything over $100,000 (in this case 20% of $47,650=$9530) or 10% of the total cost of the vehicle (10% of 147,650=$14,765) and would pay whichever of the two is less (in this case obviously $9530).</p></blockquote><p></p>