What is an excise tax?

Excise tax is a tax levied on every registered vehicle and trailer within the state. The taxpayer must pay the bill to the community in which the vehicle is registered as of January 1st of each calendar year. The rate for excise tax is $25 per $1000 in valuation of the vehicle based on the MSRP. The MSRP is reduced by a percentage according to MGL Chapter 60A for the first five years of the life of the car and then fixed thereafter. If a vehicle is sold, donated or junked, excise abatement may be obtained with the proper documentation. For more information on Motor Vehicle Excise Tax click here.