This Massachusetts Tax Rate is One of the Highest in the U.S.

When it comes to motor vehicles and driving, Massachusetts has some of the most rigorous laws in the country, behind only Alaska and Oregon. Massachusetts' rules of the road seem especially strict when in comparison to some states like say Florida, where you can basically put anything with wheels on the road.

Besides stringent rules of the road, Massachusetts is only known for it's taxes. If you've lived here your entire life it seem seem normal to you, but residents of other states sometimes scoff at the taxes Massachusetts residents pay. In fact the state has gained the nickname "Taxachussets"

Why is Massachusetts Called Taxachusetts?

"The surtax revived memories from decades ago when the tax burden was so high that citizens' groups dubbed the commonwealth “Taxachusetts.” Back in the 1970s, the share of income going to state and local taxes amounted to almost 14%, the third-highest in the nation. Massachusetts now has a flat 5% income tax."- Forbes.com

So what happens when somewhat restrictive driving laws meet a state known for it's taxes? You guess it, a higher vehicle tax rate.

Recently, WalletHub analyzed home and vehicle tax rates across the country. They looked at the 50 states and the District of Columbia by using U.S. Census Bureau data to determine real-estate property tax rates and applying assumptions based on national auto-sales data to determine vehicle property tax rates.

"For vehicle property tax rates, we examined data for cities and counties making up at least 50 percent of a given state’s population and extrapolated this to the state level using weighted averages based on population size. For each state, we assumed all residents own the same vehicle: a Toyota Camry LE four-door sedan — 2023’s highest-selling car — valued at $26,420, as of January 2024" - WalletHub

Massachusetts Has the Sixth Highest Vehicle Property Tax Rate in the Nation

Massachusetts comes in at number six on the list of highest vehicle tax rates in the U.S. The only states where tax on your motor vehicle will cost you more are Maine, Missouri, South Carolina, Mississippi and Virginia. Massachusetts excise tax annually charges residents who own vehicles at a rate of $25 per $1000 of valuation. This is separate from the 6.25% sales tax folks must pay when they purchase a vehicle.

There are actually only 26 states in the country who charge some kind of motor vehicle property tax. Among those, Louisiana charges the lowest rate.