Excise Tax Information

Excise Tax Information

All Massachusetts residents who own and register a vehicle must pay a motor vehicle excise tax annually.  The excise is levied by the city or town where the vehicle is principally garaged and the revenue becomes part of the local community’s treasury.

Excise tax bill information is generated at the Registry of Motor Vehicles according to the information on a resident’s registration.  Excise tax lists are sent to the local Assessor who then makes commitment to the Tax Collector for collection of payment.  It is important to notify the RMV if you move or change the place of garaging of your vehicle.  Otherwise, you will continue to receive excise tax bills from the Town of Boxford.

Many transactions, including cancelling or checking the status of your registration can now be done online at the myRMV Online Service Center.

Excise Tax Calculation

Excise tax is assessed at $25.00 per thousand dollars of taxable value.  The value of a motor vehicle is determined at the RMV using a statutory formula based on the Manufacturer’s Suggested Retail Price (MSRP). Condition and market value are not considered when determining value.  Percentages are determined as follows (examples based on 2024 excise tax bills):

In the year prior to model year (model year 2025)                      50%

In the year of manufacture (model year 2024)                            90%

Second Year  (model year 2023)                                                 60%

Third Year  (model year 2022)                                                     40%

Fourth Year (model year 2021)                                                    25%

Fifth year, each year thereafter (model year 2020 and older)     10%

Excise tax is billed by the calendar year. If a vehicle is registered mid-year, the excise tax will be prorated based by the month.

If you believe the MSRP of your vehicle is incorrect, please contact the RMV.  The RMV will then notify the Assessor of any errors.

ABATEMENT INFORMATION

Taxpayers are eligible for an abatement of excise tax if the vehicle has been sold/traded/declared a total loss/junked/registered in another state.  Taxpayers must provide the required documentation in order for their application to be complete (documents needed for an excise tax abatement can be found here.)  Per Massachusetts General Law, excise tax is prorated on a monthly basis. Abatement applications must be received by the Assessor’s office within 3 years of when  the excise was due or 1 year after the excise was paid, whichever is later.

Please note you are NOT entitled to an abatement if you 1.) Cancel your registration but retain ownership of the vehicle or 2.) Move to another city or town in Massachusetts during the calendar year.  No excise can be reduced to less than $5.00 and not abatement or refund of less than $5.00 may be made.

Filing an application for abatement does NOT stay the collection of your excise tax bill.  To avoid interest, fees, and collection action, you must pay the bill within 30 days of the issue date.  If you receive an abatement on a bill that has been paid, you will receive a refund.  Any abatements granted will be on the original excise tax only and will not reduce any interest or fees.

Abatement applications may be submitted online or by mail/in person using this form.