Massachusetts used car dealer paperwork and sales tax guide

This is a plain-language summary of how a used-car deal works out in Massachusetts: the sales tax, what happens to a trade-in, how dealer fees are treated, and the paperwork a dealer prints. DMS Apex uses these same rules to work out each Massachusetts deal.

Massachusetts tax and fees at a glance

How Massachusetts sales tax is worked out

Massachusetts: the buyer pays the 6.25% sales tax to the RMV at registration, so the amount shown is an estimate. It is figured on the price and the documentary fee (both taxable, per DOR Directive 14-1) and other charges, less the trade-in. A service contract is not taxed here: confirm with the DOR. The title preparation fee is capped at $5. Annual excise tax is billed separately by the buyer's city or town. Title fee starts at $75. Massachusetts requires a written used-vehicle warranty and notice of warranty rights on a sale of $700 or more (M.G.L. c.90 s.7N1/4): 90 days or 3,750 miles under 40,000 miles, 60 days or 2,500 miles from 40,000 to under 80,000, 30 days or 1,250 miles from 80,000 to under 125,000, with the buyer paying at most $100 per repair. The trade-in credit applies only when the buyer already paid tax on the traded vehicle. Give the state's warranty notice with the sale.

Massachusetts paperwork a dealer prints

DMS Apex prints these documents for a Massachusetts deal, all in black and white:

• Buyer's Order
• Buyers Guide

This is general information, not legal or tax advice. Massachusetts rules change: confirm current requirements with the Massachusetts Registry of Motor Vehicles or the Massachusetts Department of Revenue.