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 $25.00 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 calculation the motor vehicle excise.
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