Massachusetts car sales tax and RMV fees

The excise: a fixed schedule on the list price

Massachusetts does not assess cars as personal property. Instead, chapter 60A of the General Laws levies an excise of $25 per $1,000 on a valuation that is a set share of the manufacturer’s list price: 50% in the year before the model year, 90% in the model year, then 60%, 40%, 25% and 10% from the fifth year on. The rate is the same in Boston and in the smallest town; only the collector changes. A car registered after January pays only for the months left in the calendar year, and the excise is never below $5. Buying a 2027 model in 2026 puts the car on the 50% line, which the calculator values at $437.50. An older car costs little: a 2019 model valued on an $18,000 price comes to $45.00.

Sales tax rules that change with the seller

The 6.25% applies to every car registered in the state, but its base depends on who sells. From a Massachusetts dealer, the trade-in allowance is deducted, and the Department of Revenue counts the document and title preparation fees as part of the taxable price. Between private parties, there is no trade-in credit and the tax is due on the price or the average trade-in value of the car, whichever is greater, so an artificially low bill of sale does not help. Close relatives (parent, spouse, child, brother or sister) can transfer a car without the tax.

Inspection and renewal

Every car takes a yearly safety and emissions inspection at a licensed station for $35, and a newly bought car must pass within 7 days of registration. The registration itself is renewed every two years for $60. Electric cars pay no surcharge. For a state that charges its excise on a similar list-price formula but in mills, see the Maine page, and for the property tax approach used elsewhere, read the vehicle property tax guide.

What sets Massachusetts apart

• Every city and town bills a yearly motor vehicle excise of $25 per $1,000 of the car's valuation, in place of a personal property tax (Mass. General Laws c. 60A).
• The excise valuation is a fixed share of the manufacturer's list price: 50% in the year before the model year, 90% in the model year, then 60%, 40%, 25% and 10% from the fifth year on (Mass. General Laws c. 60A).
• A car registered after January pays a prorated excise for the months left in the calendar year, and the excise is never less than $5 (Mass. General Laws c. 60A).
• Sales and use tax on a car is 6.25%, and the RMV will not issue a title and registration until it is paid (830 CMR 64H.25.1: Motor Vehicles (Massachusetts DOR regulation)).
• A trade-in lowers the tax only when the car is bought from a Massachusetts dealer; on a private sale the trade-in gives no credit (830 CMR 64H.25.1: Motor Vehicles (Massachusetts DOR regulation)).
• On a private sale the tax base is the price paid or the NADA average trade-in value, whichever is greater (830 CMR 64H.25.1: Motor Vehicles (Massachusetts DOR regulation)).
• The Department of Revenue treats dealer document preparation and title preparation fees as part of the taxable sales price, even when financed (Massachusetts DOR).
• A standard passenger registration costs $60 and is renewed every two years, and a certificate of title costs $75 (Massachusetts RMV).
• A newly bought car must pass inspection within 7 days of registration, and the yearly inspection costs $35 for most vehicles (Massachusetts RMV).
• Massachusetts charges no extra registration fee for electric or hybrid cars; a standard passenger plate costs the same $60 (Massachusetts RMV).

What the Massachusetts calculation cannot know

• The motor vehicle excise is a calendar-year tax prorated by month when a car is first registered after January; the engine shows the full-year amount for the purchase year, as a deferred line billed later by the city or town.
• The excise valuation is a percentage of the manufacturer's list price for the model, not of the price paid; when the MSRP is not typed, the engine uses the price, which understates the excise of a discounted new car and of any used car.
• On a private sale the use tax is computed on the price or the NADA average trade-in value, whichever is greater; the form does not ask the book value, so the engine taxes the price.
• No cap on the dealer documentation fee was found in Massachusetts law; only the separate title preparation fee is limited to $5 (G.L. c. 90D, §33). Type the dealer's fee; it is taxed as part of the sales price.