How is the excise determined?

Valuation figures are the manufacturers' list price for vehicles in their year of manufacture (MSRP). Present market value, price paid, and/or condition are not considered for excise tax purposes. The excise tax law (MGL C60A, §1) establishes its own formula for valuation for state tax purposes whereby only the manufacturer's list price and the age of the motor vehicle are considered. Various percentages of the manufacturer's list price are applied.

The percentages are as follows:

  • In the year preceding the designated year of manufacture (brand new car released before model year) - 50%
  • In the designated year of manufacture - 90%
  • In the second year - 60%
  • In the third year - 40%
  • In the fourth year - 25%
  • In the fifth and succeeding years - 10%

Show All Answers

1. What is motor vehicle excise?
2. Where does the billing information come from?
3. How is the excise determined?
4. How is the excise tax calculated?
5. Who collects the motor vehicle excise?
6. When is payment due?
7. What happens if my payment is late?
8. What are the requirements for abatements (adjustment to your bill)?
9. How do I cancel my registration (license plates)?
10. How do I get an abatement?