Iyman’s Registry Services works alongside new and used car dealers and is the trusted local source for fast, efficient registry and title services. In fact, we are proud to be one of the only companies of our kind in the area that services out of state dealers! Because we work with car dealers just like you every day, you can count on us for quick turnarounds so you can best serve your customers.
Massachusetts Car Sales Tax Calculator
The state of Massachusetts collects a sales tax of 6.25 percent on all vehicle sales in the state. If you're buying a new vehicle, the calculation is easy. For example, if your new vehicle is priced at $12,000, your sales tax payment will be ($12,000) x (0.0625) = $750, resulting in a total cost of $12,750. To calculate straight sales tax, repeat this calculation with the cost of the vehicle you are considering.However, your sales tax is calculated differently if you have additions to the purchase. For example, many dealerships allow you to trade in an older car toward the purchase of a new one. In Massachusetts, you can subtract the value of your old trade-in from the value of the new car, saving you the sales tax. For example, if your trade-in is worth $3,000, the final price of the new car is ($12,000) - ($3,000) = $9,000, and sales tax is ($9,000) x (0.0625) = $562.50.In addition to trade-in value, many dealerships offer rebates and other incentives to encourage vehicle purchases. In Massachusetts, these offers are removed prior to taxes being collected. Let’s say your trade-in is worth $3,000 and the dealership offers a cash rebate of $1,000. Your new car would cost ($12,000) - ($3,000 + 1,000) = $8,000, and final sales tax would be ($8,000) x (0.0625) = $500.
Additional Charges in Massachusetts
Purchasing a car doesn't just involve the car's value. After the vehicle purchase costs and sales tax are calculated, there are many other fees involved to register the car within MA. A standard Massachusetts title costs about $75, while the vehicle's registration fee can range from $20 to $100. There is a $25 processing fee when transferring plates from an old car.
