Massachusetts charges a flat 6.25% sales or use tax on cars, with no local add-on. What catches many buyers off guard is the yearly motor vehicle excise that your city or town bills for as long as you own the car.
Massachusetts car taxes and fees at a glance
| Sales / use tax | 6.25% statewide, no local tax |
|---|---|
| Trade-in | Subtracted when you buy from a registered dealer; not on private sales |
| Private sales | Taxed on the higher of the price or the car’s clean trade-in (book) value |
| Title | $75 |
| Registration | $60 for 2 years (standard passenger plate) |
| Yearly tax | Motor vehicle excise: $25 per $1,000 of value, at least $5 |
Rules worth knowing
- The excise uses the manufacturer’s list price, not what you paid: 50% of it in the year before the model year, 90% in the model year, then 60%, 40% and 25% in the next three years, and 10% after that.
- A new registration after January is billed only for the months left in the year, and you can apply for a prorated abatement if you sell the car or move.
- Gifts and sales between spouses, parents, children and siblings are exempt from the sales tax if Massachusetts tax was already paid on the car (Form MVU-24 or MVU-26).
- If you bought the car in another state and bring it here within 6 months, you get credit for sales tax paid there, depending on that state’s rules.
Example: what you’d pay in Massachusetts
Buying a $30,000.00 used car from a dealer, with a $5,000.00 trade-in:
| Sales/use tax (6.25%) | $1,562.50 |
| Certificate of title | $75.00 |
| Registration (standard plate, 2 years) | $60.00 |
| Taxes and fees | $1,697.50 |
|---|---|
| Out-the-door price | $26,697.50 |
Plus a yearly tax billed separately:
| Yearly motor vehicle excise (this year, full year) | $218.75 |
Dealer documentation fees aren’t included in this example; add your dealer’s fee in the calculator.
Frequently asked questions
Do I pay sales tax on a private car sale in Massachusetts?
Yes. You pay 6.25% use tax when you register the car at the RMV, on the higher of the price you paid or the car’s clean trade-in value. A trade-in doesn’t lower it on a private sale.
Why is my excise bill based on a higher number than I paid?
The excise uses the manufacturer’s list price and a fixed schedule by age, not the sale price. That’s set by state law (MGL c.60A, s.1).
Is the excise the same in every town?
Yes. The rate is $25 per $1,000 of value everywhere in Massachusetts; your city or town just sends the bill.
Sources
- Mass. DOR: Motor vehicle and trailer sales and use tax
- Mass.gov: Apply for registration and title (vehicle from an individual)
- Mass.gov: Registry of Motor Vehicles fees
- MGL c.60A, s.1 (motor vehicle excise)