Additionally, renewal fees for license plates can range from $60 to $100 and a fee of $80 is charged for vanity plate renewal. The average cost of DMV fees in Massachusetts is around $80 depending on the price of the registration. Motor vehicle annual inspection fee: $35.Add or delete a lien holder on car title: $25.State excise fee: $25 for each $1,000 of the vehicle's valued price.What are DMV or state fees when purchasing a car in Massachusetts?Īccording to EverQuote, there are several additional fees that you must pay when purchasing a vehicle in Massachusetts. However, these fees can vary greatly from dealership to dealership as there is no limitation on doc fees in Massachusetts. Documentation fees are an average of $340 in the state of Massachusetts. Common factors that go into a documentation fee include how much it costs to submit the sales contract, compose the tax documentation, etc. Massachusetts New and Used Car Sales Tax and Fees What are the documentation fees in Massachusetts?Ĭar dealerships may charge buyers a documentation fee, sometimes referred to as a doc fee, to cover what it pays to prepare and file the required documentation for a car sale. This means that if you purchase a vehicle that costs $15,000 but receive a $2,000 rebate, you will only be taxed for $13,000 of the total vehicle price. In Massachusetts, the price of a vehicle is taxed after incentives or rebates are factored in. Manufacturer rebates and cash incentives are often used by car dealerships to promote sales. How are rebates and dealer incentives taxed? So, using the example above, you would only be taxed on the $14,000 you pay out-of-pocket for the new car rather than the car's value of $20,000. In Massachusetts, you will not be taxed on the credit received for a trade-in. The new car you are purchasing costs $20,000, but you will only pay $14,000 due to the credit of your trade-in. For example, let's say you trade in your previous car and receive a $6,000 credit. When you trade-in your old vehicle, you will receive a credit toward the purchase of a new car. According to SalesTaxHandbook, Massachusetts has a state sales tax rate of 6.25% on all cars purchased in the state. Massachusetts: Sales Tax Handbook What is the local sales tax rate in Massachusetts?Ī vehicle is one of the largest purchases you can make in Massachusetts, and as a result, often has one of the highest sales tax costs. Let's take a look at everything you need to know about purchasing a vehicle in this state. In addition to sales tax, other taxes may be required when buying a car in Massachusetts. Understanding the Massachusetts auto sales tax required for purchasing a vehicle in this state can ensure you are prepared and educated when looking for a new car.
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