How is motor vehicle excise calculated?

Motor Vehicle Excise Tax is a State Tax calculated by the Massachusetts Department of Revenue.

The amount of the motor vehicle excise due on any particular vehicle or trailer in any registration year is calculated by multiplying the value of the vehicle by the motor vehicle excise rate. That rate is fixed at $25 per thousand dollars of value. The value of the vehicle for the purpose of the excise is the applicable percentage for that year of the manufacturer's suggested retail price for the vehicle. The applicable percentages are set out in Ch. 60A S1 as follows:

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

The manufacturer's list price for any particular vehicle is the price recommended by the manufacturer as the selling price of that vehicle when new. It is the manufacturer's list price rather than the actual purchase price which will control for purposes of calculating the motor vehicle excise.

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1. Can I make an after-hours payment?
2. How are quarterly tax bills calculated?
3. How is motor vehicle excise calculated?