Commonwealth of Massachusetts Excise Tax
In case of registering a car or trailer in the state, you will receive an annual bill for the Commonwealth of Massachusetts excise tax. The bill comes directly from the local city or town — not the state government. It is based on a specific value assigned to the vehicle — rather than the income or a standard sales tax percentage.
What is the tax and why do cities bill it?
Cities and towns send this bill because you are registering and keeping a vehicle within their borders. While the Registry of Motor Vehicles (RMV) provides the data to determine the vehicle's value, your local municipality collects the payment.
Massachusetts excise tax is paid every calendar year. Because the bill connects directly to the registration record, keeping the name & address information updated with the RMV prevents billing issues.
Who has to pay the bill?
In case of owning a motor vehicle or trailer registered in the state, you are responsible for paying the MA excise tax. In parallel to state and local guidelines, almost every registered vehicle gets billed — unless a specific exemption applies to the owner.
In the case of keeping an unregistered car on your property, the relevant town might send a personal property tax bill instead. The paperwork should be checked carefully to recognize exactly which bill is paid.
How is vehicle value set for excise purposes?
The state uses the manufacturer’s list price and a set depreciation schedule to locate the vehicle's taxable value. The tax rate never changes — but the percentage of the car's value used for the bill goes down as the car ages.
| Vehicle year for excise purposes | Share of list price used |
|---|---|
| Calendar year before model year | 50% |
| Model year | 90% |
| Second year | 60% |
| Third year | 40% |
| Fourth year | 25% |
| Fifth year and after | 10% |
How to calculate MA excise tax?
The amount due is determined by taking the vehicle’s calculated value, dividing it by $1,000, and multiplying that number by $25. Afterwards, you should adjust for the months you actually had the car registered — if you registered it after January.
Locate the manufacturer’s list price
Multiply it by the correct percentage from the age table above
Multiply the number by 0.025
In case of registering the car after January, prorate the amount for the remaining months of the year
Verify the final number is at least $5.
Example:
A $30,000 car in its second year retains 60% of its value — making the taxable value $18,000. At $25 per $1,000, the full annual bill is $450 before any monthly proration. It presents exactly how the Massachusetts motor vehicle excise tax works for a standard car.
When is the bill due and when is it prorated?
There are 30 days to pay the bill after the city or town issues it. If you miss the 30-day window — the town adds interest payments as well as late fees.
The Massachusetts excise tax adjusts in line with when you register. If you put a car on the road in April, you only pay for 9 months — April through December.
Can you lower the bill or ask for an abatement?
Yes. It is possible to request an abatement — a reduction or refund — if the situation matches specific local rules. Proper reasons to ask for a change can be exemplified as below:
The town used the wrong vehicle value
You sold, traded, or reported the car stolen — and you canceled the plates
You moved out of state, registered the car there, and canceled the Massachusetts registration
Specific vehicle owners also qualify for full exemptions, covering some disabled veterans, former prisoners of war, surviving spouses, and specific charitable groups.
In case of applying for an abatement, these items listed below should be ready:
A copy of the original bill
Proof you canceled the registration
A receipt showing you returned the plates
Documents proving the sale, trade, theft, or move
Proof of the new out-of-state registration
What mistakes cause trouble with this tax?
Problems generally happen when owners forget to update or cancel their RMV records. If you sell the car but forget to cancel the plates — the town will keep sending a Massachusetts excise tax bill. In order to prevent such scenarios:
Open the mail immediately
Verify the name, license plate, town, and vehicle value on the notice
Cancel the registration the moment you sell / move a vehicle
Keep the sale or trade or moving documentation in a safe place
File an abatement request with your documentation if the town makes an error
If a Massachusetts excise tax notice has incorrect information, respond right away. The town needs proof that the story matches the RMV's official cancellation date.
How can Dimov Associates assist?
Our team stands ready to review notices, check the calculation, and organize the documentation required to dispute a bill. If you have business vehicles or face a larger tax issue, reach out to us today to review the details.
FAQs
Who is subject to MA excise tax?
If you own a motor vehicle or trailer registered in the state — you receive this bill. It is based directly on the registration records held by your local city or town.
How do I calculate excise duty?
Take the vehicle's set value and divide it by $1,000, then multiply by $25. Adjust the total for the number of months the car was registered if it was bought mid-year. The car's value varies with its original list price & its age.
How do I estimate my MA excise tax?
In order to calculate the Massachusetts excise tax, find the manufacturer’s list price and multiply it by the state's percentage for the car's age — afterwards, multiply that result by 0.025. Then, lower the total for any months you did not own the car.
