Massachusetts Used Car Sales Tax & Fees (Revised 2024)
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Buying and Selling Used Cars in Massachusetts
In 2023, over 15.6 million cars were sold — and used cars made up a significant portion of revenues. The top-selling used vehicle in Massachusetts was the Toyota RAV4, a versatile SUV with plenty of space and a smooth driving experience.
If you're shopping for a used vehicle in Massachusetts, it's a good idea to research fees and taxes ahead of time so you can set a budget for your purchase. Use our comprehensive guide to taxes and fees to avoid any unwanted surprises.
As of 2024, Massachusetts has a statewide sales tax of 6.25% applied for all car purchases.
Massachusetts DMV and State Fees
| Item | Cost | Details |
|---|---|---|
| Sales tax | 6.25% of the vehicle's sales price | If you purchase a vehicle from a registered dealer, you'll pay a 6.25% Massachusetts sales tax. The dealer collects the tax and remits it to the state. |
| Use tax | 6.25% of the vehicle's sales price or book value | Buyers who purchase a used vehicle from a private party or out of state owe a 6.25% use tax. The use tax is due by the 20th of the month after purchase or when the vehicle enters Massachusetts. The buyer is responsible for remitting the tax. Keep in mind that only sales or use tax applies to vehicle sales, not both. Some buyers may qualify for an exemption in certain circumstances. |
| Excise tax | $25 per $1,000 of vehicle's value on a sliding scale | The excise tax is based on the manufacturer's list price in the year it was produced. Massachusetts sets a percentage of the list price to calculate the tax. Certain people may qualify for an exemption. View the chart below to see current excise rates. |
| Vehicle registration fee | $60 | |
| Certificate of title/transfer fee | $75 | |
| Add or delete lienholder | $25 | |
| License renewal sticker | $60 - 100 | $60 - regular plates for two years $100 - vanity plates for two years $80 - vanity plates for one year |
| Annual inspection fee | $35 | |
| Registration gift transfer fee | $25 |
How to Calculate Massachusetts Excise Tax
The Massachusetts excise tax is a percentage of the vehicle's list price in the year it was manufactured. The rate is $25 per every $1,000 of the vehicle's value. It's billed on a calendar-year basis but prorated for purchases made after January.
| Year vehicle purchased | Vehicle value (% of list price) |
|---|---|
| Year before manufacture | 50% |
| Year of manufacture | 90% |
| Second year | 60% |
| Third year | 40% |
| Fourth year | 25% |
| Fifth year and onwards | 10% |
Massachusetts Dealership Fees
If you purchase your used vehicle from a dealership, it may charge additional fees during the sales process.
| Item | Cost | Details |
|---|---|---|
| Documentation Fees | Varies | Some dealerships charge a separate fee for titling and registering their sold vehicles. There is no limitation on fees, but Massachusetts requires dealerships to itemize documentation fees in their advertised prices. |
| Extended Warranty | Varies | Many dealerships offer extended warranties on their used vehicles, which can help offset future maintenance or repair costs. Extended warranties are optional. If you decide to purchase one, your dealer may offer to include it in your vehicle loan. |
| Advertising Fee | Varies | Occasionally, dealerships include an advertising fee in the vehicle sales price. The fee offsets marketing expenses. You may be able to negotiate advertising fees with your dealership. |
Massachusetts Insurance Requirements
Before registering your used vehicle, you must obtain insurance coverage that complies with Massachusetts law. Your insurance must include liability coverage and personal injury protection. However, if you buy the vehicle with a loan, your lender may require you to get additional comprehensive and collision insurance.
Auto insurance rates can vary widely, so getting quotes from several providers is smart. Once you have a few quotes, you can choose the insurer that best suits your needs. Many companies offer discounts, so ask about your eligibility when selecting a new policy.
Miscellaneous
If you purchase your used vehicle from a dealership, it may charge additional fees during the sales process.
| Item | Cost | Details |
|---|---|---|
| Vehicle history report | Varies | Before buying a used car, it's a good idea to obtain a vehicle history report that notes the car's ownership and accident history. Some dealerships may provide a free vehicle history report, or you can purchase one through Carfax or AutoCheck. |
| Vehicle inspection | Varies | Many consumers opt to get a vehicle inspected before buying it. An inspection can pinpoint any problems that may be costly to repair — saving you future headaches. |
Frequently Asked Questions
Do I pay tax for a gifted car in Massachusetts?
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Do I pay tax transferring vehicle ownership to family members in Massachusetts?
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Do I have to pay MA tax for a vehicle purchased out-of-state?
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Premiums are sourced from over 30,000 zip codes across 200 insurance companies. We estimate premiums based on public filings for policies seeking 50/100 in liability with $500 deductibles for collision and comprehensive coverage. Estimated rates are based on a 35-year-old single female with a good credit score and no history of accidents or violations driving a 2023 Toyota RAV4 LE. We partner with Quadrant Information Services to source our data and assume no unique benefits or discounts are applied for these rates (unless otherwise stated). Your own rates may be different.