How is the amount of my Motor Vehicle & Trailer Excise Tax determined?

The amount of the Motor Vehicle & Trailer Excise Tax on any particular vehicle or trailer is calculated by multiplying the discounted value* of the vehicle by the Excise Tax Rate of $25.00 per $1,000 in discounted value. The $25.00 Excise Tax Rate applies to all communities in Massachusetts and was established by the State Legislature several years ago.

  • The Motor Vehicle & Trailer Excise Tax itself is determined as follows:
    $25.00 / $1,000                  x              Discounted Value*          =             Excise Tax
  • It is important to note that, under Massachusetts Law, the minimum Excise Tax is $5.00 which means that if the above calculation of the Excise Tax results in an amount less than $5.00 then your Excise Tax will be assessed as $5.00
  • The discounted value* of your vehicle is determined by multiplying the Manufacturer’s Suggested Retail Price (MSRP) of your vehicle, when it was originally sold by the manufacturer, by the applicable discount rate according to the following table:
    If the Tax Year is:

    The Dicounted Value* is

    determined as follows:

    Preceding the Model Year

     

    Same as the Model Year

     

    1 Year after the Model Year

     

    2 Years after the Model Year

     

    3 Years after the Model Year

     

    More than 3 Years after the Model Year

    0.50 x MSRP = Discounted Value*

     

    0.90 x MSRP = Discounted Value*

     

    0.60 x MSRP = Discounted Value*

     

    0.40 x MSRP = Discounted Value*

     

    0.25 x MSRP = Discounted Value*

     

    0.10 x MSRP = Discounted Value*