On this page
Massachusetts car sales tax at a glance
| Massachusetts | |
|---|---|
| Tax | sales tax |
| State rate | 6.25% |
| Average with local taxes (2026 (Tax Foundation midyear, July 1)) | 6.25% |
| Counties and cities add tax | No |
| Trade-in lowers the tax | Yes, tax is on the price minus the trade |
| Leases | Tax on each monthly payment |
Checked on the state's official sources on 2026-11-02. Rates change; the state's revenue department has the last word.
How to work out Massachusetts sales tax on a car
Multiply the taxable price by the rate. In Massachusetts the trade-in comes off first.
A $30,000 car with a $5,000 trade: $25,000 x 6.25% = $1,562.50 at the state rate.
6.25% statewide (M.G.L. c. 64H, s. 2), no local sales tax.
Trade-ins
When a licensed dealer takes a trade-in, tax is imposed only on the difference between the sales price and the trade-in allowance (M.G.L. c. 64H, s. 26).
Leasing a car in Massachusetts
Tax on each monthly payment. Massachusetts: a true lease is a series of separate sales, so the lessor collects 6.25% on each lease payment as it comes due (DOR Directives 05-2 and 02-8, 830 CMR 64H.25.1); a trade-in on a lease reduces the taxable amount only under DOR's conditions (Directive 04-3). The lease calculator uses Massachusetts's method when you pick the state.
Dealer doc fees
No cap found.