Please help clarify how motor vehicle excise tax works in MA as pertains to leased vehicle. We have a 3 year lease on a model year 2021 car - lease expires February 2024 and I plan on buying out.
We need to move the car to Boston for Fall 2024 - we can move it anytime as we have family who will give us garage storage. Reading MA guide below I can not figure out what I would be paying in excise tax. It looks like it is based on “year you bought your vehicle”. Since it is a lease, I would be buying in 2024 even though the car is 2021.
Any information about MA excise tax, DMV registration, and relocating a car to MA would be greatly appreciated.
I hated excise tax in MA. It was expensive for luxury cars and came as surprise. For me, when I moved with leased car I had to contact leasing company the car is registered to, and change vehicle registration, etc. Then leasing company got excise tax bill from the county in MA and it was passed onto me. When I moved out, I had to claim prorated refund.
It’s annoying, pretty high for first year or two then does seem to drop rapidly. On a 90k vehicle I’ve paid 1400ish, 60kish 800ish.
Some leasing companies if you sell are good about filing an abatement for prorated refunds if you sell it. Some like Chrysler Capital aren’t
If you’re buying out you’re paying tax so I’d look to see if you’re not in MA yet if buying it now makes more sense.
a 2021 won’t have too bad of a excise burden compared to a new car, it seems the values do drop fast based paying excise for a long time. Bills usually come out early in the year.
Thank you for reminder that if I buy out I pay tax (duh). So in CA, I buy out and pay 8.75% tax - bc I would not be full time MA resident, I assume the CA tax rate will stick. Either way, sales tax is inescapable.
What confuses me is wording from different sites. “Year you bought your car” versus “year of manufacture”. How is excise tax calculated on a model year 2021 car that I buyout from lease company in 2024 ? Here is MA table:
If you wait to buy out as a FT MA resident your sales tax will be less (6.25%)
Excise is based on where it’s registered. So if you have a MA garaged address and registration you’ll pay excise. If it’s still registered in CA you won’t if it’s sitting in MA with Cali plates.
So If it was worth 100k new I’m guessing you’ll pay based on the 40% so 40k and a tax rate per thousand, which would make your bill likely around 500 is my guess.
Agree with @tensorflower I’ve always paid based on the valuation that year of the year of the vehicle.
They’re not going to charge you the value of the car from 3 years ago today. It’s a “personal property tax” like you’d pay on a home. Based on what the property is worth.
We are not moving to MA full time. We are spending 10-12 weeks a year there to be with family. The car rental is adding up. That along with parking space is why we’d like to bring our 2021 car there. I don’t think we can drive around MA that much without actually registering it with their DMV.
Side note: Researched auto insurance and can buy through Costco Connect – half the cost of what we are paying so that helps offset excise tax.
MA here too. I have been with Costco Connect for a while, and having bothered shopping around recently. Good to know they are still coming up as a “cheaper” option.
I have no idea about their service etc., though, because I have never had any claims!
Through Costco, I was an Ameriprise Auto Insurance customer for years. Then I needed a homeowners policy and Ameriprise did not sell homeowners for my area. I currently have an Auto/Home/Umbrella with “one of the best” insurers in the country (false advertisement, had a simple claim 2 years ago and they were a pain).
I will say my best claim experiences were with Costco Ameriprise. I am so delighted to get the Costco Connect quote, not just b/c it’s less expensive than CA . I think Costco does right by their members and I feel confident that their approved insurer will be just fine.
Sea_Wolfe can you tell me what other annual MA DMV fees are associated with vehicle registration ? Aside from paying excise tax, what else do I have to pay ? Do they have SMOG inspection, like CA ? Or any inspection ? Thanks
I agree. I’ve had a good experience with Costco overall.
In MA, there is a once per year vehicle inspection required (which includes the emissions test). The cost to get it done, and get a new windshield sticker valid for another year is $35 (usually requires a cash only payment at most locations—of which there are many, many–most gas stations etc.) GL with your move. If you have any other questions, please feel free to ask!
