The term Excise Tax MA refers to the excise tax system applied in Massachusetts, most notably for motor vehicles. This page explains its scope, calculation, deadlines, and key regulatory details for residents and vehicle owners, including sample rates and official resources for compliance.
Scope & Who This Applies To
This excise tax system applies in Massachusetts (MA), primarily concerning registered motor vehicles.
All Massachusetts residents who own and register motor vehicles are subject to this tax. Businesses owning vehicles registered in MA are also included.
The tax is assessed annually based on vehicle registration status as of January 1 of the tax year.
Non-residents typically do not pay the MA motor vehicle excise unless their vehicle is registered in Massachusetts.
Calendar year; assessment is based on vehicle status as of January 1.
Filing Status / Entity Type
Applies to individuals and businesses owning registered vehicles in MA.
Rate Structure
Flat rate of $25 per $1,000 of vehicle value (confirmed by multiple sources as of August 2025).
Income Scope
Not income-based; applies to vehicle ownership and registration. Focus is on excise for tangible personal property (motor vehicles).
Deductions & Credits
Abatements may be available for sales, theft, registration cancellation, or out-of-state registration during the year. Eligibility and process determined by local assessor’s office and MA DOR.
Deadlines
Bills are typically mailed in the first quarter; payment is due within 30 days of billing. Late payment results in additional interest and penalties. Confirm dates with your city/town tax collector.
Forms
Bills issued by local assessors; abatement forms and related procedures are available from municipal offices or the Massachusetts DOR site.
Penalties
Mandatory interest plus collection costs for late payments; sample/illustrative—refer to official local postings for exact figures.
How the Tax Is Calculated
The motor vehicle excise tax in Massachusetts is based on the valuation of the vehicle as determined by the state, not the actual purchase price or market value.
The assessed value is set by the Commissioner of Revenue using a percentage schedule based on the manufacturer’s suggested retail price (MSRP) in the vehicle’s model year.
The rate is fixed at $25 per $1,000 of the calculated value, prorated if the registration is issued or canceled partway through the year.
To calculate: Multiply the vehicle’s assessed value by 0.025 (representing $25 per $1,000). Example: a $20,000 assessed value x 0.025 = $500 excise tax for the year (sample/illustrative).
If a vehicle is sold, traded, stolen, totaled, or registered elsewhere during the year, you may qualify for a partial abatement; the taxpayer must provide appropriate documentation to the local assessor.
There is no withholding, but timely payment is required to avoid penalties. Most towns allow payment online, by mail, or at municipal offices.
Rates, Thresholds & Examples
Bracket/Threshold
Rate
Filing Status
Notes
First year of model
$25 per $1,000 of value
Individual or business vehicle registration
Valued at 90% of original MSRP
Second year
$25 per $1,000 of value
As above
Valued at 60% of original MSRP
Third year
$25 per $1,000 of value
As above
Valued at 40% of original MSRP
Fourth year
$25 per $1,000 of value
As above
Valued at 25% of original MSRP
Fifth year and after
$25 per $1,000 of value
As above
Valued at 10% of original MSRP (minimum)
Representative example: A vehicle assessed in its second model year at $18,000 x 0.025 = $450 annual excise tax (sample/illustrative).
Values and calculation schedules are subject to updates; always verify the current valuation schedule on your local assessor’s office or the Massachusetts DOR.
Deductions & Credits
There is no standard deduction or credit as seen in income tax. However, abatements (reductions or eliminations of tax) are available if the vehicle is sold, stolen, totaled, or registered out of state during the tax year.
Eligibility for an abatement depends on prompt documentation provided to the local assessor, including proof of sale, plate return, or new registration.
Abatement requests are time-sensitive and are generally required within the same calendar year. Each city/town may have specific local procedures.
Detailed guidance for abatements can be found at local assessor offices or via the official Massachusetts DOR.
Documentation & Filing Steps
Review the excise tax bill mailed by your municipality, which is generated based on RMV records as of January 1.
Gather vehicle registration documents and any proof required for abatement if the vehicle status changed.
Check payment deadlines; the due date is typically 30 days from the billing date.
Make payment online through the municipal website, by mail (check to the collector), or in person at the town/city collector’s office.
If applying for abatement, submit the official form with supporting documents promptly to your assessor’s office.
Maintain thorough records of payment and correspondence in case of disputes or clerical errors.
Common Pitfalls & Compliance Notes
Failure to pay within 30 days results in escalating interest and collection fees; non-payment may block vehicle registration renewal and prompt RMV action.
Delays in transferring or returning license plates after a sale or move can create eligibility or abatement problems.
Missing abatement filing deadlines disqualifies reductions, even if the vehicle is sold or stolen during the year.
Always reconcile any discrepancies with your municipal assessor or collector, and use official documentation channels for any disputes.
Comparisons & Special Cases
Similar Taxes or Regimes
The Massachusetts excise tax is different from the annual registration fee charged by the RMV and from standard sales/use taxes collected at purchase.
Unlike local property tax (assessed on real estate), excise is a personal property tax specifically for registered vehicles, calculated by a statutory formula.
Some states levy no annual excise tax on vehicles, while others use annual ad valorem taxes based on market or assessed value; rules and rates differ.
Frequently Asked Questions
What triggers a Massachusetts motor vehicle excise tax bill?
The excise is assessed on all vehicles registered in MA as of January 1 in any calendar year.
The tax is billed by the municipality where the vehicle is garaged, based on RMV information.
Registration events (new, renewal, transfer) generate or update excise obligations.
Can I get a refund or abatement if I sell my vehicle or move out of state?
Yes—partial abatement is available if you provide timely documentation of sale, stolen status, or out-of-state registration.
The abatement amount is prorated for the months after you no longer own or register the vehicle in MA.
You must contact your local assessor; forms and procedures are available online or at the municipal office.
What happens if I miss the payment deadline?
Interest accrues, and additional fees or collections may apply after 30 days.
Non-payment can block vehicle registration renewal with the Registry of Motor Vehicles.
Conclusion & Next Steps
The Excise Tax MA regime requires all owners of vehicles registered in Massachusetts to pay an annual tax based on a statutory valuation schedule and a fixed rate.
Familiarize yourself with deadlines and use only official city/town or state tax resources for the latest details, forms, and procedures.
Keep all documentation related to vehicle status changes and payments to support filings and avoid penalties.
