New Hampshire is one of just five states that do not have a sales tax, so you’re in luck when you need to purchase a vehicle. However, if you live in neighboring Vermont, Maine or Massachusetts, you cannot simply go to New Hampshire to buy a car to avoid paying sales tax.
Is car sales tax deductible in Massachusetts?
Second, Massachusetts is one of those states that charges what is effectively a tax on the value of your motor vehicle each year, as a type of registration fee. In Massachusetts, the state authorities call this an “excise tax.” That excise tax can be separately deductible as a car registration fee.
How much does it cost to register a new car in Massachusetts?
The regular one-year passenger vehicle registration fee is $30, and $60 for two-year plates. If you want a special registration plate, it is a $75 fee. All this information can be found on the Department of Motor Vehicles (DMV) website Massachusetts extension.
Can you register a car in New Hampshire if you live in Massachusetts?
If you still work in MA, you’ll have to pay their income taxes, just like other non-residents, but at least you can register your new car in NH.
Can you buy a car in NH and register in MA?
If you are registering your car in Massachusetts, you will typically leave the New Hampshire dealership with the title to your new vehicle and the RMV-1 form. Your auto insurance company will need to stamp the RMV-1 form, after which you will be able to register your car in Massachusetts.
Do you have to pay mass sales tax in New Hampshire when buying a car in Massachusetts?
No. If you live in New Hampshire when you buy a car in Massachusetts you don’t have to pay Mass sales tax. If you’re getting it through a Massachusetts car dealer, they’ll know how do the paperwork. I’ve personally experienced it for a new car purchase, and I’m pretty certain the law doesn’t distinguish.
When do you pay taxes when buying a vehicle out of State?
However, some states such as Alaska, New Hampshire and Delaware don’t charge sales tax on car purchases in general, while Oregon charges a small use tax just when you’re buying a car out of state. On top of any state sales tax, you’ll need to add the county portion, if required, to know how much to bring for registration.
When do I buy a car in Massachusetts and register it in?
When buying a car in Massachusetts, the Sales tax is paid when you register the car in Massachusetts. So if you are buying the car in Massachusetts and registering the car in NH, you will not be subject to the MA Sales Tax. I hope this is helpful information. Have you been hacked?
Do you pay Massachusetts tax if you work in NH?
I live in Massachusetts, but work in New Hampshire. Does turbotax take that into account? My W2 for NH doesn’t show a massachusetts tax. Yes. If you claim MA as your state of residence in TurboTax, all state income from all sources (including NH) will be included on your MA resident state income tax return.
