How is my Vehicle Excise Tax Calculated?

  • Anyone who registers a vehicle (including trailers) in Massachusetts will receive an excise tax bill.
  • The tax year for excise is the same as the calendar year (January 1st to December 31st). 
  • The bill is paid/due to the town/city where the vehicle is garaged at the time it is initially registered and then where it is garaged as of every January 1st thereafter.
  • Overdue/unpaid excise tax balances more than 30 days after issue will begin to accrue interest charges and fees.
  • Eventually unpaid bills will cause your driver's license and/or vehicle registration to be non-renewable with the RMV.

 

The Massachusetts Registry of Motor Vehicles (RMV) determines the amount to be paid by a combination of factors:

    • The original Manufacturer's Suggested Retail Price (MSRP) is multiplied by a factor determined by the age of the vehicle (see chart below).  
    • This calculated value is then multiplied by the RMV tax rate of $25.00 per thousand dollars of value (2.5%).

The RMV uses the formula below regarding the age of the vehicle: 


  • Model year is newer than the current tax year: 50% of original MSRP
  • Model year is the same as the tax year: 90% of original MSRP
  • Model year is one year older than the tax year: 60% of original MSRP
  • Model year is two years older than the tax year: 40% of original MSRP
  • Model year is three years older than the tax year: 25% of original MSRP
  • Model year is four or more years older than the tax year: 10% of original MSRP


EXAMPLE:   
A car whose model year was 8 years ago and had an original MSRP of $30,000

 

Original MSRP:

$30,000.00

 

Calculation for age:

x 10%

(see above chart)

Value of the vehicle for tax purposes: 

$3,000.00

 

Multiply the Value by the Tax Rate: 

x 2.5%

(currently $25.00 per $1000.00)

Excise Due this Tax Year:

$75.00

 

 


What if I buy a vehicle in the middle of the year (or anytime after January 1st)?

  • The RMV will use this same calculation shown above, however it will be prorated from the date you registered the vehicle to December 31st.

 

What if I no longer own the vehicle (sold, traded, totaled, etc.) or moved out of Massachusetts on/after January 1st?

  • You are entitled to an abatement (a refund if already paid or an adjusted amount due if unpaid). More details on filing an abatement
  • The RMV does NOT notify us, the responsibility is on you to let us know by filing for an abatement.  
  • Do not ignore the excise bill you received!  Even though you may have sold, traded or otherwise disposed of the vehicle, unpaid bills more than thirty (30) days after its issue date, will accrue interest charges and fees for which you will be responsible. Long term overdue/unpaid excise tax balances will cause your driver's license and/or vehicle registration to be non-renewable with the RMV