Motor Vehicle Excise Information

Massachusetts law requires residents who own and register a motor vehicle to pay a motor vehicle excise each year. Every motor vehicle used (or planning to be used) for personal road privileges, whether registered or not, is subject to taxation.

Read the full statute here: MGL Chapter 60A, MGL Chapter 59, Section 2

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.

We have produced this page as a public service. If you have further questions about motor vehicle excise payments, contact the Registry of Motor Vehicles.

Frequently Asked Questions

How are excises billed?

By law, your city or town prepares its own excise bill, based on excise data sent by the RMV. City or town assessors then inform local tax collectors to facilitate distribution and collection of payment.

How are excises calculated?

Massachusetts levies an excise on each vehicle at the rate of $25 per $1,000 of valuation. City or town assessors can access information on a vehicle’s value from a database of valuation figures.

Different sources can provide valuation figures, depending on whether the vehicle is an automobile, a truck, a motorcycle, or a trailer. For example, automobile valuations can be based on figures published in the National Automobile Dealers Association Official Used Car Guide (NADA). Most public libraries have copies of NADA and other motor vehicle official guides.

By law, assessors can levy excises based only on the manufacturer’s list price and the age of the motor vehicle. Assessors can’t levy excises based on present market value, price paid, or vehicle condition.

The excise tax law uses its own valuation formula for state tax purposes. The formula is below:

Every motor vehicle owner must pay an excise tax based on valuation of at least ten percent of the manufacturer’s list price. If you own a vehicle older than five years, you would have a fixed excise tax bill for succeeding years of ownership. However, even if you applied for an abatement to reduce an excise tax bill, your excise can’t be less than $5.

Are excises prorated?

Excises are prorated monthly. If your vehicle is registered after the beginning of any calendar year, you wouldn’t pay an excise for any months passed before the vehicle is registered.

If your vehicle is registered for any part of a month, however, you’d pay an excise for all of that month. Your annual excise, due on a car registered after January 1, would be reduced by one twelfth of the full year’s amount for every month prior to registration.

How are excises collected?

Local tax collectors are responsible for collecting motor vehicle and trailer excises. Collectors may appoint deputy tax collectors—or work with collection agencies—to assist them with delinquent accounts.

Collectors deliver all excise money, save for deputy tax collector fees, into the municipal treasury. Generally, tax collectors and deputy tax collectors do not accept partial payment of an excise bill.

You should be prepared to pay the full amount due. There are no special considerations for financial hardship.

When should I pay my excise bill?

You must pay the excise bill within 30 days from the date of issue—NOT the date you receive the bill in the mail.

According to M.G.L. Chapter 60A, section 2, “failure to receive notice shall not affect the validity of the excise. Even if you don’t receive a bill, you are still liable for the excise—plus any accrued interest if applicable."

To help avoid excise delivery issues, keep the RMV, local assessors, and the post office informed of your current name and address, so that bills can be delivered promptly.

All owners of motor vehicles must pay an excise tax, and it is your responsibility to contact the local assessor’s office if it hasn’t received a bill.

What happens if an excise isn’t paid?

After 30 days of non-payment, the local tax collector will send a demand, with a fee of not more than $30. Interest will also accrue on the overdue bill at an annual rate of 12 percent from the day after the due date.

After 14 more days, the collector may issue a warrant to the deputy tax collector (or an appointed agent), which carries another $10 fee. The deputy tax collector (or agent) issues a warrant notice at a cost of $12.

If there is still no response, a final warrant, a service warrant, will be delivered or exhibited to the taxpayer, at a fee of $17. All interest and penalties would be clearly stated on the bill.

How do unpaid excises affect licenses and registrations?

Unpaid excises can also impact driver’s licenses registrations and renewals. State law and regulations require cities and towns to issue a final notice to the taxpayer, stating that they plan to ask the Registrar of Motor Vehicles to prohibit registration renewal until the excise bill is settled. If the notice goes unanswered, the RMV will process the request. For more information or clarification, visit the Massachusetts Department of Revenue.

If you find yourself in this situation, and the Registrar refused renewal of your registration or license, you can fix the issue by paying your excise bill in full, including all fees and penalties, which will include a $20 release fee. Once the bill has been paid, the municipality will give you a receipt to show the RMV as proof of payment. You can then reregister your vehicle.

For more information or clarification, visit the Massachusetts Department of Revenue’s website at www.mass.gov/guides/motor-vehicle-excise.

Can I register my vehicle in another state and keep in Massachusetts?

No. Improper registration of a motor vehicle, or misrepresentation of the place of garaging, may subject an owner to substantial fines ($200-$1,000, for each offense, on each vehicle, owned for each taxable year).

The RMV tracks residency criteria (such as sales/use, excise, and even registration) for motor vehicles. If you have evidence for an abatement, you must submit an abatement application after receiving the tax bill, or deliver it to the district court following prosecution (for up to three years of owed tax) by state or local law enforcement authorities. Excise laws are enforced by Department of Revenue, the RMV, local board of assessors, and state and local police.

How can I apply for an abatement?

M.G.L. c.60A:2 as amended by Chapter 262, sections 10-11, of the Acts of 2004

If you want to apply for an adjustment of your excise bill, contact your local Board of Assessors for an abatement application. However, it’s generally beneficial to pay the bill in full before seeking an abatement—although payment is not a precondition, you risk incurring late fees and penalties if the abatement is denied. If you pay the bill as assessed, and later receive an abatement, you’ll receive a refund by mail.

State law requires that vehicle owners submit abatement applications to assessors within three years after the excise bill was due, or one year after it was paid, whichever is later. Make sure to apply on time to avoid losing your appeal rights. While assessors sometimes act on late applications, the excise must still be outstanding and you cannot appeal. If assessors decline to grant a discretionary abatement, however, you can then pay the excise, apply for an abatement within one year of the payment date, and appeal the assessor’s decision on that application.

You can file for an abatement:

• If you believe the assessment is incorrect
• If your vehicle was stolen
• If you sold the vehicle during the relevant year and cancelled registration
• If you moved, registered the vehicle in another state, and cancelled the registration in Massachusetts
• If you did not renew the registration in Massachusetts

What can I do if an abatement is denied?

If assessors don’t act on an abatement application within three months (unless you agree in writing to an extension), the application is deemed denied. You would have no appeal rights to any state or local agency or official. However, you can still pay the excise and file for an abatement within one year of the payment date.

If your application for abatement is denied at the local level, you can appeal to the State Appellate Tax Board. If the State Appellate Tax Board grants an abatement because of overpayment, the city or town treasurer would issue a refund accompanied by 6% interest, calculated from the date of payment of the excise to the date the refund is paid. Interest would not apply if the abatement is granted by the Board of Assessors. No abatement can reduce a tax to less than $5, and no abatement of less than $5 will be granted.

By law, assessors have discretionary authority to abate all or a portion of excise taxes, interest, and charges beyond the deadline period. However, the excise tax must still be outstanding to give assessors jurisdiction. Assessors do not need to obtain authority to abate from the Commissioner of Revenue.

For further information please contact your local board of assessor’s office.

What if I’ve moved within the state?

If you move within Massachusetts and haven’t paid an excise tax for the current year, immediately notify the local assessor of your new address. You must pay the motor vehicle excise to the city or town in which you resided on January 1. If you moved before the first of the year, you must pay the tax to the new community to which you moved.

If you did not notify the RMV, the local assessor, and the post office that you moved before the first of the year, you may need to file for an abatement with the former city or town which sent the excise bill. Most cities or towns will dismiss the bill and reroute it to the new community once you prove that you moved before the first of the year.

What if I’ve moved out of the state?

You can file for an abatement if you move out of Massachusetts, register your vehicle in another state, and either cancel or allow your Massachusetts registration to lapse.

You can qualify for the portion of the year after the month when your vehicle was registered in the new state, or in which the Massachusetts registration was cancelled, whichever is the later.

You must cancel the registration in Massachusetts and obtain a “lost plate receipt” from the Massachusetts RMV to avoid any problems with an excise tax abatement application. The RMV only issues lost plate receipts to owners who turn over their Massachusetts license plates to another state’s department of motor vehicles for the purpose of registering their car in the other state.

What if I sold my vehicle?

If you sold your vehicle and still received an excise bill, you must return the plate(s) to the RMV, get a return plate receipt, and file an application for abatement together with the return plate receipt and the bill of sale with the Board of Assessors.

The bill will be adjusted to reflect the portion of the year when the vehicle was owned by you. It is important to remember that the bill for a vehicle you no longer own should not be ignored.

What if I traded my vehicle?

If you traded your vehicle and did not own it during in the calendar year stated on the excise bill, you should still pay the bill and then file an application for abatement with the Board of Assessors. The application must accompany a copy of the registration for the new vehicle indicating the date of transfer.

If you traded your vehicle, but still owned it for a portion of the calendar year stated on the excise bill, you must pay the bill, provide a copy of the registration for the new vehicle with the date of transfer, and an application for abatement to the Board of Assessors. The board can adjust the bill to reflect the ownership for only part of the year, and grant the proper abatement. The bill on the trade-in vehicle is prorated back to the last day of the month prior to the one in which the vehicle’s registration was cancelled, and the excise bill on the new vehicle will be prorated as of the beginning of the month in which the vehicle was registered.

What if my vehicle was stolen?

If your vehicle is stolen and not recovered within 30 days, you are entitled to an abatement if you reported the theft to the local police within 48 hours of discovery.

After 30 days, you must surrender the certificate of registration and obtain a confirmation certificate from the RMV. Present this certificate, along with the local police report of the theft, to the Board of Assessors with an application for abatement.

The board will adjust the bill and grant an abatement for the remaining portion of the year. If the motor vehicle or trailer is subsequently recovered and reregistered, another excise bill will be issued for the remainder of the year. Falsely reporting the theft of a motor vehicle or trailer will result in severe penalties, and a person may be charged up to three times the excise due on the vehicle for an entire year.

What it my vehicle is totaled?

If your vehicle is totaled in an accident, remove the plates and either have them registered to a different vehicle or cancelled.

If you return the plates to the RMV, make sure to acquire a Return Plate Receipt. You’ll need to show this receipt to your insurance company and your local Board of Assessors. You may be entitled to an abatement when you cancel the plates, otherwise you will remain liable for the excise tax until the return plate receipt or a Lost or Stolen Plate Receipt is shown to the local Board of Assessors.

What if my vehicle is leased?

Leased cars are still subject to excise tax. However, the original leasing contract determines who pays the bill. If you have any questions, contact the leasing company.

Normally, if the car is registered in the driver’s name, the driver is obligated to pay the excise tax, not the leasing company. But even if the car is registered in the leasing company’s name, there may be terms in the contract passing on any taxes, excise included, onto the driver, so it’s best to check the contract.

Are there any excise tax exemptions?

State law provides excise tax exemptions for vehicles owned by specific groups, including:

• Non-resident military

• This exemption is available to those in the service who don’t regularly live in Massachusetts, reside in the state by military orders, and register their autos (either individually or jointly with a spouse) in the state for personal (non-business) use.
• The serviceperson could be stationed in Massachusetts or in a border state. For eligibility, the serviceperson must present a letter from the commanding officer to the local assessor stating non-residence, military stationed status.
• A Massachusetts resident who is sent to another state pursuant to military orders but does not cancel their registration is not eligible for this exemption.
• Leased vehicles are also not eligible for this exemption; however, the serviceperson should check the leasing contract or inquire of the leasing company if it will pay on their behalf.
• There is no obligation for a non-resident military serviceperson to register a car in Massachusetts if it was purchased, titled, and registered in the home state. The home state registration may be retained indefinitely, regardless of where stationed in the country. The only requirement is that insurance coverage at least equal to Massachusetts minimum levels be carried.

• Certain disabled individuals and veterans, ex-prisoners of war and their surviving spouses

• For ex-prisoners of war and their surviving spouses, the law allowing the exemption for the motor vehicle excise must be accepted by the city or town to be applicable.

• Certain charitable organizations

What if I have more questions?

Contact your local Board of Assessors. Put all questions in writing, and request a written response so that procedures are clearly defined.

Remember that deputy tax collectors or collection agencies are agents of your local tax collector. Complaints concerning the performance of their duties should be directed to your local tax collector.

For more information, download the Motor Vehicle & Trailer Excise Manual, or contact the State Appellate Tax Board.