How much will it cost me to pay excise tax on my vehicle?

Most vehicles are assessed an excise tax based on purchase price. Each state, however, applies its own percentage rate on which to base the tax amount. In Maryland, for instance, the excise tax is based on 6% of the vehicle's purchase price. Whereas in Oklahoma the amount is also based on the purchase price provided it falls within 20% of the average retail value for that exact model of car. And in Massachusetts the rate is based on $25 on the thousand.  

The calculation process can get complicated. Realizing this, some state DMV Web sites, such as Maine's, provide excise tax calculators. If one is not available, try calling your local DMV office for a possible quote. Or at least an estimate. By rule, you can expect to pay a higher excise tax rate if you own a newer vehicle. 

Unlike sales tax, which you pay only once during the time of purchase, you must pay excise tax annually, prior to registration.

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