Toyota Highlander XLE or XSE

Comparing the equipment, powertrain, and price of these two popular Highlander trim levels.

David Gluckman | 

Jul 24, 2025 | 3 min read

Toyota

Toyota

Efficiency Differs Despite a Shared Powertrain

The Highlander XLE and XSE trims come standard with the same gas-only powertrain: a turbocharged 2.4-liter four-cylinder that produces 265 horsepower and 310 pound-feet of torque. The XLE is also available as a hybrid but the XSE is not. For this comparison, however, we're focusing on non-hybrid versions.

The gas-powered XLE and XSE both get a conventional eight-speed automatic transmission and either front-wheel drive (FWD) or all-wheel drive (AWD).

Fuel economy for the XLE FWD is rated at 22/29/25 mpg in city/highway/combined driving, while opting for AWD drops those figures slightly, to 21/28/24 mpg. The XSE, which is only available with AWD, has the same efficiency ratings as the XLE AWD.

Toyota

The Highlander XLE Is the Luxury-Oriented Option

Highlander XLE models are available with either a seven- or eight-seat configuration and come with Toyota's SofTex upholstery.

The suspension on the XLE model is tuned more for comfort than handling responses. This trim rides on 18-inch wheels that provide a bit of extra cushion due to their larger sidewalls.

Standard equipment includes an 8.0-inch center touchscreen with wireless Apple CarPlay and Android Auto capability; a system with a 12.3-inch display is available. Three-zone automatic climate control, a moonroof, and keyless entry and start are also standard.

A FWD Highlander XLE with the non-hybrid powertrain starts at around $44,000, while the AWD version goes for about $46,000. If you don't need AWD or you prefer a cushier ride, the XLE is likely the ideal choice.

Toyota

The Highlander XSE Is Slightly Sportier in Look and Feel

The Highlander XSE comes exclusively with seven seats. Its standard SofTex upholstery can be upgraded to leather, an option the XLE does not offer. XSE models also add ambient interior lighting.

To go along with its stiffer, sport-tuned suspension, the XSE features a sportier front-end treatment with a black mesh grille, as well as black mirror caps, black accents for the headlight units, black roof rails in place of silver pieces, black 20-inch wheels, and chrome exhaust tips. The XSE is the only Highlander trim available in a paint color called Cement, which is a light gray.

The XSE model is available with an 11-speaker JBL sound system in place of the six-speaker system that's standard on it and the XLE. The upgraded sound system is packaged with the available 12.3-inch center screen on the XSE.

The AWD system included on the XSE adds torque-vectoring capability, allowing it to send more torque to one side or the other in the rear. All of the XSE's other functional equipment, such as driver-assist features and infotainment systems, matches what's offered on the XLE.

The XSE starts at about $48,000, roughly $2,000 more than an XLE AWD. This is the choice for someone who wants a bold exterior appearance, can do without the XLE's available eighth seat, and doesn't mind sacrificing some ride comfort for improved driving dynamics.

All vehicle pricing includes MSRP plus destination charges (set at the time of publication), and will be rounded to the nearest thousand.

David Gluckman

David has years of experience as a writer and editor for print and digital automotive publications, including Car and Driver and Road & Track. He can parallel-park a school bus, has a spreadsheet listing every vehicle he's ever tested, and once drove a Lincoln Town Car 63 mph in reverse. When not searching for the perfect used car, he can be found sampling the latest gimmicky foodstuffs that America has to offer.