Motor Vehicle Excise Information
HERO Act Implementation
Effective immediately, we are implementing the "HERO Act: An Act Honoring, Empowering, and Recognizing our Servicemembers and Veterans.
" Here are the key points":
- Eligibility will be based on a disability determination by the U.S Department of Veteran Affairs (VA), not the RMV’s Medical Advisory Board.
- Veterans will qualify for a motor vehicle excise tax exemption if the VA determines they have a 100% disability rating or deem them unemployable due to their service-connected disability.
- Eligibility criteria for a disabled veteran plate remains unchanged.
For more information, please contact the Assessors at [email protected] or 781-586-6702.
Motor Vehicle Excise Tax Overview
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. The excise is charged by the city or town where the vehicle is principally garaged. The revenues go into the local community treasury.
Who Needs to Pay?
If you own a registered motor vehicle or trailer, you must pay a tax called a motor vehicle and trailer excise each year. When you receive your motor vehicle excise bill, you will also get instructions on how to pay it.
Every motor vehicle and trailer registered in Massachusetts is subject to the motor vehicle excise unless exempted.
How is MV Excise Calculated?
The excise rate is $25 per $1,000 of your vehicle's value. It is charged for a full calendar year and billed by the community where the vehicle is usually garaged.
How is the Value Determined?
Your vehicle's value for excise purposes isn't the actual purchase price or "book value." Instead, it's a percentage of the manufacturer's list price in the year of manufacture:
- Year before designated year of manufacture: 50%
- Year of manufacture: 90%
- Second year: 60%
- Third year: 40%
- Fourth year: 25%
- Fifth year and onwards: 10%
Is Excise Tax the Same in All Municipalities?
Yes! All bill files are sent to communities from the RMV, where the values and taxes are calculated. They are then issued by the community where the vehicle is garaged.
Where Does the Money Collected on MV Excise Go?
The issuing municipality receives the revenue, which goes into the general fund to service the needs of the local government.