What is motor vehicle excise tax?

Motor Vehicle Excise Tax is an annual tax for the privilege of registering a motor vehicle or trailer. Anyone who registers a vehicle in Massachusetts will receive an excise tax bill from the municipality where the vehicle is garaged. The amount of excise tax due is calculated by multiplying the value of the vehicle by the tax rate ($25 per thousand dollars of value). The value of the vehicle is determined by the Registry formula taking the applicable percentage for the year of the Manufacturer's Suggested Retail Price (MSRP). The manufacturer's list price rather than the actual purchase price is used to calculate motor vehicle excise tax.

Applicable Percentage for the Year

  • In the year preceding the year of manufacture - 50%
  • In the year of manufacture - 90%
  • In the second year - 60%
  • In the third year - 40%
  • In the fourth year - 25%
  • In the fifth and succeeding years - 10%

Show All Answers

1. What is motor vehicle excise tax?
2. When am I eligible for motor vehicle excise abatement?
3. Who qualifies for a motor vehicle excise exemption?