How Massachusetts Vehicle Excise Tax Works
Massachusetts charges a motor vehicle excise tax of $25 per $1,000 of your vehicle's value. This is a local tax that stays in your town or city, not sent to the state.
Your vehicle's taxable value isn't what you paid for it. Instead, it's a percentage of the manufacturer's suggested retail price (MSRP) based on your car's age.
The Depreciation Schedule
The state uses a five-year depreciation schedule to determine your vehicle's taxable value:
| Vehicle Age | Value Percentage |
|---|---|
| Brand new (model year of manufacture) | 90% of MSRP |
| 1 year old | 60% of MSRP |
| 2 years old | 40% of MSRP |
| 3 years old | 25% of MSRP |
| 4+ years old | 10% of MSRP |
| Newer than current year | 50% of MSRP |
Example Calculation
Let's say you own an 8-year-old car with an original MSRP of $30,000.
Step 1: Apply the age factor: $30,000 x 10% = $3,000 (taxable value)
Step 2: Multiply by the tax rate: $3,000 x $25 per $1,000 = $75 per year
In this case, you'd pay $75 annually for motor vehicle excise tax.
Important Details
The minimum excise tax is $5, even if your calculation comes out lower. If you register a vehicle mid-year, your tax is prorated from your registration date through December 31st.
You can request an abatement if you sell your vehicle, trade it in, move out of Massachusetts, or register it in another state. You'll need proof like a bill of sale or registration cancellation receipt.
How to Get Your Bill
The Registry of Motor Vehicles sends electronic records to your town, which mails you a paper invoice. You have 30 days from the bill date to pay. The same $25 per $1,000 rate applies across all 352 Massachusetts towns and cities.