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If the sale is made by a motor vehicle or trailer dealer or lessor who is registered, the sales tax rate is 6.25%. The use tax applies to all other types of transfers of title or possession where the vehicle transferred is stored, used, or consumed in Massachusetts.
Vehicles transferred as a gift. You may be exempt from paying sales tax on a vehicle transferred to you as a gift from another person. The person transferring the vehicle must have met the tax laws of the state they registered it. You must pay a $25 fee and the title and registration fees.
The use tax is calculated by taking the difference between the Massachusetts use tax rate (6.25%) and the other state's tax rate, and multiplying that difference by the sales price.
How Much Does a Title Transfer Cost in Massachusetts? In the state of Massachusetts, the title transfer fee is $75. If you purchased a new vehicle, you are also responsible for paying the sales tax based on the NADA value of the purchase price. Keep in mind, you will also have to pay registration fees.
The buyer doesn't have to pay Massachusetts use tax: If the state or territory it was bought in has a reciprocal agreement with Massachusetts (allows a corresponding exemption/credit for sales/use taxes paid to Massachusetts), and.
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People also ask

Calculating the Excise The excise rate is $25 per $1,000 of your vehicle's value. It is charged for a full calendar year and billed by the community where the vehicle is usually garaged.
How much does it cost to register your vehicle in Massachusetts? In 2021, registering a normal private passenger vehicle in Massachusetts costs $60 and is good for 2 years. In MA, the Certificate of Title fee is $75. You'll also need to have your vehicle inspected, which costs $35.
Form MVU-29. Affidavit in Support of a Claim for Exemption. from Sales or Use Tax for a Motor Vehicle. Purchased Outside of Massachusetts.
How can I avoid paying sales tax on a used car? You will register the vehicle in a state with no sales tax because you live or have a business there. You plan to move to a state without sales tax within 90 days of the vehicle purchase. The vehicle was made before 1973. You are disabled.
Massachusetts collects a 6.25% state sales tax rate on the purchase of all vehicles. In addition to taxes, car purchases in Massachusetts may be subject to other fees like registration, title, and plate fees.

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