Massachusetts Car Sales Tax 2026 — MA Vehicle Tax Guide

Massachusetts Vehicle Tax Overview

Massachusetts charges a 6.25% sales tax on vehicle purchases from dealerships. Beyond this one-time tax, vehicles are subject to an annual excise tax based on the vehicle's value and local tax rate.

Sales Tax Rate

Massachusetts' vehicle sales tax is straightforward:

Rate: 6.25% of purchase price
Less trade-in value
No local sales tax on vehicles
Uniform across the state

Annual Excise Tax

Massachusetts assesses an annual excise tax on all registered vehicles. The tax formula:

Excise Tax = (Vehicle MVD Value × City/Town Rate) / 1,000

Boston's excise tax rate is $25 per $1,000 of vehicle value. Other municipalities set their own rates, typically between $10 and $25 per $1,000.

Example: $30,000 vehicle in Boston = ($30,000 × $25) / 1,000 = $750 annual excise tax.

Excise Tax Depreciation

The excise tax decreases each year as the vehicle depreciates in value. New vehicles pay the highest excise tax in year one, with amounts decreasing annually.

Trade-In Tax Deduction

Massachusetts allows trade-in vehicle value to reduce the taxable purchase price for the 6.25% sales tax. This exemption applies at the dealership level.

Additional Massachusetts Fees

Vehicle purchases include:

Title fee: $25
Registration: $35-50
Plate fee: $30-50 annual
Sales tax: 6.25% minus trade-in

Conclusion

Massachusetts' 6.25% sales tax is uniform statewide, but the annual excise tax varies by municipality. Factor in both the one-time purchase tax and expected annual excise tax when budgeting for vehicle ownership in Massachusetts.

Questions

What is the vehicle sales tax rate in Massachusetts?

Massachusetts charges 6.25% sales tax on vehicle purchases from dealerships. There is no local sales tax on vehicles, making the rate uniform across the state.

Does Massachusetts have annual vehicle excise tax?

Yes, Massachusetts vehicles are subject to an annual excise tax based on the vehicle's value. The tax is calculated as (MVD value x city/town rate) / 1000. Boston's rate is $25 per $1,000 of value.

How is the MA excise tax calculated?

Massachusetts excise tax = (Vehicle's MVD value × City/Town rate) ÷ 1,000. For example, a $30,000 vehicle in Boston: ($30,000 × $25) ÷ 1,000 = $750 annual excise tax. The tax decreases each year as the vehicle depreciates.

Does trade-in value reduce Massachusetts sales tax?

Yes, Massachusetts allows trade-in vehicle value to reduce the taxable purchase price for the 6.25% sales tax calculation. This exemption applies at the time of purchase.