2027 Lexus TZ vs 2027 Toyota Highlander: 12 Major Differences!
A Tale of Two Prototypes: TZ vs Highlander — Is the Lexus REALLY That Much Better than the Toyota? Here’s Every Major Difference!
Disclosure: Lexus & Toyota provided ClubLexus with hotel accommodation, meals, and transportation to see both the 2027 Lexus TZ and the 2027 Toyota Highlander at two different press events.
Last week, ClubLexus attended the North American 2026 Lexus ES first-drive press event — we’ve covered the new interior HERE, but our first-drive review will be out on May 27. During said event, we also spent time with a European-spec 2027 Lexus TZ prototype. Built on the same platform as the 2027 Toyota Highlander and 2027 Subaru Getaway, the all-electric three-row TZ’s similarities are obvious to anyone with, you know, working eyes.
Which got me wondering. If the Highlander is so nice — and it is — what have the Lexus engineers and designers done to make the TZ 450e, as it will be branded here in the United States, worth its inevitable higher pricing?
To that end, I’ve pored over both vehicles in person, plus all currently announced specs, to highlight how the TZ is worthy of the Lexus name and what Lexus has done to elevate this model over the others. Alas, I’ve yet to see the Subaru in person, so for this post, I’m mostly covering Highlander and TZ.
Let’s dive in!
1. Front End & Hood
Perhaps the most obvious distinction, the new TZ borrows a few proportions — including the hood, smooth spindle grille, and daytime running lights (DRLS) — from the handsome GX 550. Despite the TZ’s chunky proportions, the engineers were proud of its 0.27 drag coefficient, a pretty sizable improvement over the three-row TX’s 0.34 rating.
The Highlander looks a little sleeker up front and joins the growing throngs of Hammerhead-faced Toyota models. In truth, it looks great, but I’m starting to wonder if people are going to get tired of seeing this design language on, well, everything.
Which one do YOU think has a better face? (Hit up the comments HERE to share your thoughts about both prototypes.)
2. Horsepower
While both the TZ and Highlander will offer two battery sizes — 77.0-kWh or 95.8-kWh — the power offerings are quite different, with the Lexus partly coming out on top. Toyota plans to sell 221-horsepower FWD Highlanders (198 lb.-ft) as well as 338-horsepower AWD variants (198 lb.-ft. front torque, 125 lb.-ft. rear torque).
The AWD version is effectively the same powertrain as the RZ 450e and new C-HR.
The TZ 450e U.S. power numbers aren’t official, but one thing is clear — every TZ variant will be AWD.
What do I mean by variant?
Well, unlike most Lexus vehicles — where you’ll see something like the RZ 350e (221hp), RZ 450e (338 hp), and RZ 550e (402 hp), Lexus is only going to offer the TZ as a 45oe despite what we understand to be multiple horsepower levels. However, in other markets, the TZ will be sold as the 55oe.
Confused? Me too!
Anyway, here’s the headline: there will be a top model TZ variant that utilizes the RZ 550e’s AWD powertrain, with “at least 402 horsepower.” Although that’s confusing too, because Subaru Getaway is supposed to have 420 horsepower. I suspect Lexus will ultimately match the Subaru for the top grade, while offering a TZ base model that shares the Highlander’s 338 horsepower offering.
I just wish Lexus were more consistent with model names, now that they aren’t tied to engine size.
3. Chassis Rigidity
Spend enough time talking about Lexus and Toyota siblings, and invariably someone’s going to say, “Oh, that’s a Toyota with a Lexus badge.” It happens almost every week. But after speaking with both Lexus and Toyota engineers, it’s clear Lexus vehicles are different from Toyotas, much in the same way the GR Corolla is different from the regular Corolla.
For example, Lexus enhances its chassis compared to standard Toyotas. In the case of the TZ, Lexus reinforced its body structure with “high-rigidity adhesives, laser screw welding, and aluminum components.” The result is a lighter, stiffer chassis that’s more stable while driving and — from my experience — something that’s going to drive smoother and feel quieter on the inside.
That’s not to say the Highlander is going to ride like crap or be a noise fest.
But if you spend enough time jumping between Lexus and Toyota models, you can feel and hear the differences. And Lexus is taking the added refinement especially seriously with its new EVs — both the ES and the TZ — aiming to provide a relaxing, lounge-like experience for all passengers
4. Dynamic Rear Steering
Coupled with the reinforced chassis, the Lexus TZ also features Dynamic Rear Steering (DRS), which we’ve seen on the RX and TX 500h F Sport Performance. Tied to a higher grade and the more powerful AWD version — IE, not standard on all TZs — DRS can pivot the rear tires up to 4 degrees to decrease slower-speed turning radiuses OR enhance stability at higher speeds.
Unavailable on the Highlander, DRS should make the TZ feel smoother. Like it has a longer wheelbase at higher speeds, and more like a sportier, shorter model in corners.
5. Lexus TZ Rear Comfort Mode
Another Lexus exclusive is a new driving mode dubbed Rear Comfort Mode. According to the engineers, this new mode manages the acceleration, braking, and the DRS system to “minimize pitching and lateral motion” for rear passenger comfort. The result, we’ve been told, is that the TZ will remain flatter while accelerating, braking, and turning.
And that’s something you won’t be getting on the Highlander.
6. Side Views
Walking down the side of each model, they’re pretty similar at first glance. And thankfully, neither has opted for cheap, plastic wheel arches. But there are some really interesting, subtle differences that make the TZ and Highlander more like fraternal twins than identical.
The Highlander has a piece of trim on the front driver door, while the TZ’s body line appears to extend further. Plus, the Highlander appears to have a flat window line, a larger rear window, a more pinched-looking D-pillar, and a taillight that reaches further forward on the rear quarter panels.
The TZ, in contrast, offers the Lexus signature floating roofline paint scheme, which is mostly a visual trick, but it also features a smaller rear quarter panel, shorter taillight, and a revised rear door shape.
7. Liftgates / Rear Lighting
Those subtle/obvious differences carry over to the rear liftgate, where the Highlander presents a much thicker wraparound LED tailgating design (that tricked so many people into thinking its teaser image was a pickup).
The TZ, in contrast, has a thinner rear LED light with the Lexus name centered. The biggest difference is that the TZ also gets sizeable, L-shaped turn signals molded into the rear quarter panels, making it unquestionably a Lexus.
8. Wheels & Range
Over on the wheel-front, the TZ and will both offer upgraded, optional 22″ wheels depending on specific packages and grades (we’ll know more of that information closer to launch).
But the TZ boasts larger 20″ standard wheels, while the Highlander plans to offer a 19″ wheel, presumably for range.
Speaking of which, the Highlander should get up to 320 miles of EPA estimated range, while Lexus only plans to offer 300 miles of range in the TZ.
9. Interior Trim
I’ll dive deeper into this in a separate article (HERE), but Lexus is quietly pivoting into a new generation of interiors. And I’m pretty excited because both the TZ and the new ES are gorgeous on the inside.
There are effectively three stars to this new show.
- Revised steering wheels with actual physical buttons that are both soft and tactile
- Faux leather touch surfaces that wrap around the dash and other places, concealing (also real) illuminated buttons
- Premium materials like real bamboo wood.
The TZ prototype we toured, sadly, used “forged bamboo,” which looks a bit like forged carbon fiber. IE, like layered black plastic plywood. But the TZ will be offered with real bamboo that we’ve also seen on the LS prototypes and the 2026 ES. And, wow, it just feels so natural and premium at the same time.
To be fair, the Highlander’s no slouch
It’s not fancy per se, but Toyota’s designers — while sharing some elements with Subaru — are having a field day with new shapes and textures. It’s less angular and not quite as busy as current Toyota trucks, for example. Instead, it feels almost like a 21st-century take on Mid-Century Modern styling and, like the Toyota Crown models, almost as nice as Lexus.
10. Ambient Lighting
Apologies, we didn’t have a full picture showing off the Highlander’s lighting,
but you can see a tiny hint of it under the screen.
One of the biggest trends among premium and luxury brands is more and more ambient lighting. Nighttime signatures that allow drivers to customize a cabin’s look and feel. Both the Highlander and the TZ offer standard 64-color ambient lighting packages that wrap from the dashes all the way to the rear passenger doors.
This one may ultimately become more of a tie, but as my memory serves, the Lexus approach is just a little bit brighter and more dynamic. But if you like customizing your interior at night, both models should put on a good show.
11. Moonroof vs Glass Roof
Another subtle, yet dramatic difference. The Highlander comes standard with an absolutely massive panoramic glass roof that stretches all the way to the third row. But it doesn’t open, and there’s no shade to block out the brightest days.
The Lexus TZ added an ultra-thin cloth shade, which doesn’t cut too far into headroom. It also offers a moonroof that can actually open for airflow. That, of course, is a bit of a mixed bag, as it will be more prone to leaks and water intrusion.
But it’s certainly a more dynamic version.
12. Seating
Last, but not least, let’s talk about subtle/obvious seating differences.
First, the obvious. The Lexus TZ not only offers heated and ventilated front seats, but heated and ventilated second-row captain’s chairs, as well as a heated (outboard) third row that’s also power folding and reclining.
By contrast, the Highlander’s second row is limited to heating only, and, while it looks like a little lounge, its third row is manual folding and reclining.
Such is life when you’re not driving a Lexus…
However, while both models — at least from what we’ve seen — plan to trim all seats with faux leather — SoftEx for Toyota, and NuLuxe + faux Alcantara for Lexus — the companies took slightly different approaches to the seats themselves.
Specifically, the Highlander seats have a sportier look to the upper bolstering, as well as perforation patterns that give the faux leather a vibrant, artistic texture. The Lexus seats feel similarly comfortable, but the design aesthetic is more Luxury-oriented, like something from a higher-end Lexus or Audi.A
Also, where the Highlander offers charge ports tucked into the back of the front seats, Lexus opted to put the TZ’s ports in the traditional center console location.
Final Thoughts
The 2027 Toyota Highlander and Lexus TZ are set to launch later this year in North America. We’re still waiting on a lot of details — pricing, grades, packages, final specs. But as you can see, while they share the same bones and infotainment systems, the (presumably) pricier Lexus clearly delivers several notable upgrades and exclusive features that you won’t be able to buy in the Toyota.
But what do you think? Are those upgrades worth it? Which one would you buy? Let us know HERE in the forums!
Image Credits: Michael S. Palmer, Lexus, Toyota
