2026 Motor Vehicle Excise Tax bills will be issued on February 20, 2026. Please do not ignore this bill! If you feel the Excise was issued in error, please contact the Treasurer’s Office.
Learn More About the Motor Vehicle Excise Tax
According to the Department of Revenue, the motor vehicle excise is imposed for the privilege of registering a motor vehicle. Motor Vehicle Excise tax is one of the few sources of revenue that remains at the local level; it is not sent to the state for redistribution. The Registry of Motor Vehicles (RMV) determines vehicle values and ownership. The RMV generates electronic bill files that are sent to communities. Upon receiving the bill file the town converts it to paper invoices and mails them out. The vehicle owner is then responsible for remitting payment within 30 days of the bill date.
The amount of the excise due on a vehicle or trailer in a given registration year is calculated by multiplying the “value” of the vehicle by the motor vehicle excise tax rate of $25.00 per $1,000 in value. (The $25.00 rate is the same in all 352 towns and cities in Massachusetts. It does not change like the property tax rate). The value of a vehicle for the purpose of determining excise is a percentage of the manufacturer’s suggested retail price (MSRP) for that vehicle based on the year of manufacture. That value is reduced annually and over a five-year depreciation schedule.
If a vehicle is disposed of either by a private sale, trade or gifting, or you register your vehicle in another state, an abatement on a portion of the excise tax may be due. A copy of the bill of sale or trade-in transaction documents together with a registration cancellation receipt from the RMV will be required as supporting documentation. Without evidence of the vehicle being disposed of, an abatement cannot be approved. For those who lease vehicles, abatements are applied for and granted to the leasing company. They, in turn, should refund the lessee once they receive a refund.