If you’re in the market for a family-friendly, adventure-ready vehicle, two names likely on your shortlist are the Subaru Outback and the Toyota Highlander. Both are known for reliability, comfort, and versatility—but they appeal to slightly different needs. In this ultimate comparison guide, we’ll break down how these two popular vehicles stack up in performance, interior space, safety, fuel efficiency, and overall value so you can make the best choice for your lifestyle.
Quick Overview
The Subaru Outback is technically a wagon, though its raised suspension, standard all-wheel drive, and rugged styling make it a crossover in spirit. It’s ideal for those who want car-like handling with off-road capability. The Toyota Highlander, on the other hand, is a midsize SUV with three rows of seating, making it a go-to choice for families who need more passenger capacity.
| Feature | Subaru Outback | Toyota Highlander |
|---|---|---|
| Seating Capacity | 5 | 7–8 |
| Drivetrain | Standard AWD | FWD or AWD |
| Max Cargo Space | 75.6 cu ft | 84.3 cu ft |
| Fuel Economy (Combined) | 26–28 mpg | 24–36 mpg (Hybrid) |
| Towing Capacity | 2,700–3,500 lbs | 5,000 lbs |
Performance and Powertrains
Subaru Outback
The Outback comes with two engine choices: a 2.5-liter flat-four with 182 horsepower or a turbocharged 2.4-liter flat-four delivering 260 horsepower. Both pair with a continuously variable transmission (CVT) and standard all-wheel drive. The turbo engine offers a noticeable performance boost, especially for highway merging or towing light loads.
Toyota Highlander
The Highlander offers more variety: a 2.4-liter turbocharged four-cylinder with 265 horsepower or a 2.5-liter hybrid powertrain producing 243 combined horsepower. The hybrid version is particularly appealing for fuel-conscious buyers. All-wheel drive is optional, and the Highlander’s towing capacity beats the Outback’s, making it more capable for hauling boats or campers.
Interior Comfort and Space
The main difference here is seating. The Outback seats five and focuses on comfort for all passengers, with generous legroom and supportive seats. The Highlander seats up to eight, making it a better fit for larger families or those who frequently carpool.
Subaru Outback Interior
- Comfortable seating for five
- High-quality materials in upper trims
- Up to 75.6 cubic feet of cargo space
- Lower load floor for easier cargo access
Toyota Highlander Interior
- Seating for seven or eight (depending on second-row bench or captain’s chairs)
- Premium finishes in higher trims
- 84.3 cubic feet of cargo space with seats folded
- More headroom in the first two rows, tighter third-row space
Technology and Features
Both vehicles come well-equipped with technology, even at base trims.
Subaru Outback
- Standard 7-inch or available 11.6-inch touchscreen
- Apple CarPlay and Android Auto
- Harman Kardon premium audio (upper trims)
- Available navigation and Wi-Fi hotspot
Toyota Highlander
- Standard 8-inch touchscreen, available 12.3-inch display
- Apple CarPlay and Android Auto
- JBL premium audio in higher trims
- Available 360-degree camera system
Safety
Safety is a strong suit for both models, thanks to generous standard driver-assist features.
Subaru Outback Safety
- EyeSight Driver Assist Technology (adaptive cruise, lane centering, pre-collision braking)
- Available blind-spot monitoring and rear cross-traffic alert
- Strong crash-test ratings from IIHS and NHTSA
Toyota Highlander Safety
- Toyota Safety Sense 2.5+ (adaptive cruise, lane departure alert, pre-collision system)
- Standard blind-spot monitoring and rear cross-traffic alert on most trims
- Excellent crash-test ratings
Fuel Economy
Fuel efficiency is an important consideration, especially with rising fuel costs.
- Outback: 26 mpg city / 32 mpg highway with base engine; turbo engine drops to around 23/30 mpg.
- Highlander Gas: 22 mpg city / 29 mpg highway with AWD.
- Highlander Hybrid: 36 mpg city / 35 mpg highway—ideal for long commutes.
Driving Experience
The Outback’s lower stance and car-like chassis give it a smoother, more agile feel, while its standard AWD and higher ground clearance (8.7 inches) make it great for light off-roading. The Highlander drives more like a traditional SUV, with a higher seating position and a heavier feel. It’s excellent for highway cruising and towing but not as nimble in tight spaces.
Towing and Capability
If towing is a priority, the Highlander is the clear winner with up to 5,000 pounds of capacity. The Outback’s 2,700–3,500-pound limit is fine for small trailers or boats but falls short for larger loads.
Pricing and Value
The Subaru Outback starts around $29,000, making it more affordable than the Highlander, which starts near $39,000. However, the Highlander’s extra seating and power options justify the higher price for many buyers. Both offer strong resale value, thanks to their brand reputations.
Which Should You Choose?
Your choice comes down to how you’ll use your vehicle:
- Pick the Subaru Outback if you want a lower price, better off-road ability for its class, great fuel economy (non-hybrid), and you only need seating for five.
- Choose the Toyota Highlander if you need three rows, more towing power, and the option of a fuel-sipping hybrid without sacrificing space.
Final Thoughts
Both the Subaru Outback and Toyota Highlander are excellent choices in their own right. The Outback is the adventurous, outdoorsy option with surprising utility for its size. The Highlander is the roomy, family-focused SUV with strong towing and tech features. Whichever you choose, you’ll get a reliable, comfortable, and capable vehicle ready for years of driving.