How is the Motor Vehicle Excise Tax determined?

The amount of the excise is based on the value of the motor vehicle that is based upon the manufacturers suggested retail price (MSRP), not your purchase price. Various percentages of the manufacturers suggested retail price (MSRP) are applied.

  • In the year preceding the designated year of manufacture (brand new car released before model year): 50%
  • In the designated year of manufacture: 90%
  • In the second year: 60%
  • In the third year: 40%
  • In the fourth year: 25%
  • In the fifth and succeeding years: 10%

Once the value of the vehicle is determined, and excise at the rate of $25 per thousand is assessed. Excises are assessed annually, on a calendar year basis, by the assessors of the city or town in which the vehicle is garaged.

If a vehicle is registered after January 31, it is taxed for the period extending from the first day of the month in which it is registered to the end of the calendar year. For example, if a vehicle is registered on April 30, it will taxable as of April 1, for the nine months of the year (April through December). In no event shall the excise be assessed for less than $5 nor shall an abatement or refund under Section 1 of Chapter 60A reduce and excise to less than $5.

Show All Answers

1. What is Motor Vehicle Excise Tax?
2. How is the Motor Vehicle Excise Tax determined?
3. Where should I mail the motor vehicle excise tax payment?
4. When are the payments due for motor excise tax?
5. What if I do not receive an Excise Tax bill?
6. What if I mail in my Motor Vehicle Excise Tax payment late?
7. My vehicles registration and drivers license has been marked for non-renewal at the Registry of Motor vehicles, how do I clear this at the registry?
8. Can I make partial payments on Motor Vehicle Excise Tax?
9. What do I do if I sell or trade my car?
10. What do I do if I move out of Reading?