Motor Vehicle Excise
Motor Vehicle Excise Introduction
Motor Vehicle Excise Under MGL Chapter 60A, all Massachusetts residents who own and register a motor vehicle must annually pay a motor vehicle excise. Also, under MGL Chapter 59, Section 2, it is important to note that every motor vehicle, whether registered or not, is subject to taxation, either as excise or personal property, for the privilege of road use, whether actual or future. The excise is levied by the city or town where the vehicle is principally garaged and the revenues become part of the local community treasury.
If you own a registered motor vehicle or trailer, you have to pay a tax, called a motor vehicle and trailer excise, each year. When you get your motor vehicle excise bill, you will also get instructions on how to pay it.
Every motor vehicle and trailer registered in Massachusetts is subject to the motor vehicle excise unless exempted.
Definition of "motor vehicle"
“Motor vehicles” are defined as “all vehicles constructed and designed for propulsion by power other than muscular power including such vehicles when pulled or towed by another motor vehicle,” excluding:
- Trains and trolleys, including trackless trolleys
- Vehicles used for purposes other than transporting property and that are incapable of being driven at a speed more than 12 miles per hour, and that are either:
- Used exclusively for building, repairing and maintaining highways, or
- Designed especially for use elsewhere than on the traveled part of ways.
- Wheelchairs owned and operated by invalids and operated or guided by a person on foot
- Motorized bicycles
Calculating the Excise
$25per $1,000 of value
The excise rate is $25 per $1,000 of your vehicle's value. It is charged for a full calendar year and billed by the community where the vehicle is usually garaged. If your vehicle is registered in Massachusetts but garaged outside of Massachusetts, the Commissioner of Revenue will bill the excise.
If you own any motor vehicle that has been registered for less than a full calendar year, you will pay the excise based on the entire month when you registered that vehicle, as well as for the remaining months of the year. For example, a vehicle registered on April 9th will be billed an excise for April through December.
The minimum motor vehicle excise is $5. If your calculated excise is less than $5, you will be taxed $5.
Vehicle value
- Your vehicle's value for excise purposes isn't the actual purchase price or "book value" of the vehicle. Instead, it's a percentage of the manufacturer's list price in the year of manufacture.
- The manufacturer’s list price for any vehicle is the price the manufacturer recommends as the selling price of that vehicle (for vehicles of the same make, type, model, and year of manufacture) when new.
Year you bought your vehicle - Vehicle value (% of manufacturer's list price)
(2022 Dodge Ram - Sticker Price $45,000 X .90 = Value to be taxed $40,500 @ $25 per thousand = Excise Tax $1012.50)
Year before designated year of manufacture 50%
Year of manufacture (2022) 90%
Second year 60%
Third year 40%
Fourth year 25%
Fifth year and onwards 10%
Motor Vehicle Excise Information (Click)