What is the car sales tax rate in Massachusetts?

Massachusetts charges a flat 6.25% sales and use tax on motor vehicles, the same as the general sales tax rate. There are no additional county or city vehicle taxes, so the rate is uniform statewide.

Does a trade-in reduce my Massachusetts car tax?

Yes, but only when you trade in to a registered dealer. The trade-in allowance is subtracted from the purchase price before the 6.25% tax is applied. A private-party trade with another individual does not earn this credit.

How does book value affect the tax?

Massachusetts taxes the greater of the actual purchase price or the vehicle's clean trade-in book value. This rule mainly affects very-low-price or gift-adjacent sales, where the RMV uses the book value to prevent under-reporting.

Are manufacturer rebates taxed in Massachusetts?

Yes. Massachusetts taxes the price before any manufacturer cash rebate is applied, so the rebate does not lower the taxable amount. Dealer discounts negotiated into the price, however, do reduce the taxable figure.

When do I pay the Massachusetts car tax?

For private-party sales you pay the use tax to the RMV when you register and title the vehicle. Dealers usually collect the sales tax at the point of sale and remit it for you as part of the paperwork.

Massachusetts Car Sales Tax Calculator

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Buying a car in Massachusetts adds a flat 6.25% sales or use tax to the price. This calculator applies the state’s rules — trade-in credit, rebate treatment, and the book-value floor — so you know exactly what you will owe at the RMV.

How it works

Massachusetts taxes the greater of the adjusted price or the vehicle’s book value:

adjusted price = purchase price - dealer trade-in allowance
taxable amount = max(adjusted price, book value)
sales tax = taxable amount * 6.25%

The trade-in allowance reduces the taxable price only on a dealer trade-in. Manufacturer rebates are not subtracted — Massachusetts taxes the pre-rebate price. If the negotiated price is suspiciously low, the RMV substitutes the clean trade-in book value as the taxable floor.

Example

You buy a car for 28,000 dollars and trade in a vehicle worth 6,000 dollars at a dealer. The adjusted price is 22,000 dollars, which exceeds the book value, so the taxable amount is 22,000 dollars. At 6.25% the sales tax is 1,375 dollars, bringing your out-the-door tax to that figure plus registration and title fees.

Notes

The 6.25% rate is uniform statewide with no local add-ons. Private-party buyers pay the use tax directly to the RMV at registration, while dealers collect it at sale. Gifts between certain family members and some transfers are exempt. Confirm current rules and exemptions with the Massachusetts Department of Revenue and the RMV at mass.gov.