Massachusetts Form MVU-23 is the affidavit you file to claim an exemption from the state’s 6.25% sales or use tax when a motor vehicle, trailer, or other covered vehicle is transferred to an insurance company as part of a total-loss claim.1Mass.gov. Motor Vehicle Sales and Use (MVU) Tax Forms Its full title is “Affidavit in Support of a Claim for Exemption from Sales or Use Tax for a Motor Vehicle, Trailer or Other Vehicle Transferred to an Insurer.” You present it at the Registry of Motor Vehicles during the title transfer, and the tax that would otherwise apply to the transaction is waived.2Massachusetts Department of Revenue. Motor Vehicle and Trailer Sales and Use Tax
When the Exemption Applies
Massachusetts normally charges a 6.25% use tax on private motor vehicle transfers, calculated on the purchase price or the vehicle’s clean trade-in value, whichever is higher.2Massachusetts Department of Revenue. Motor Vehicle and Trailer Sales and Use Tax A total-loss settlement sits outside that framework. The insurer isn’t buying your car at retail; it’s taking title as part of paying out your claim. MVU-23 is how the state recognizes that distinction on paper.
The exemption covers the transfer from you, the insured, to the insurance company, in connection with a claim for the loss or loss of use of the vehicle. It does not cover what happens next. If the insurer resells the salvage to a third party, that sale is a separate transaction with its own tax treatment.
Getting and Filling Out the Form
Download MVU-23 from the Massachusetts Department of Revenue’s Motor Vehicle Sales and Use Tax Forms page.1Mass.gov. Motor Vehicle Sales and Use (MVU) Tax Forms It’s a short PDF you can print and complete by hand or fill in on a computer before printing.
The form asks for the usual vehicle identification details — year, make, model, and Vehicle Identification Number — along with the names and addresses of both parties: you as the transferor and the insurance company as the transferee. A certification statement confirms the transfer is connected to an insurance claim for the loss or loss of use of the vehicle.
A few things to get right the first time:
- Copy the full 17-character VIN exactly as it appears on your current title or registration. One transposed digit can get the filing rejected.
- Use the insurer’s full legal name as it appears on your policy declarations page, not a shortened marketing name. The RMV matches it against corporate records.
- Make sure both the transferor and the insurer’s authorized representative sign and date the affidavit. An unsigned affidavit is invalid.
Bring your policy number and claim number to the RMV even if the form doesn’t ask for them. The clerk or the insurer’s paperwork may reference them during the title transfer.
Filing at the RMV
Present the completed MVU-23 at the RMV when the title transfer is processed. The clerk reviews the affidavit alongside the title application, and if everything matches, the exemption applies on the spot. You leave without owing the 6.25% use tax.
If the transfer has already gone through and you paid the tax by mistake, you can request a refund through an abatement. The Massachusetts Department of Revenue takes abatement requests through MassTaxConnect, its online portal, which processes faster than paper submissions. Paper filings go to Massachusetts DOR, P.O. Box 7010, Boston, MA 02204.3Mass.gov. AP 627 – Applications for Abatement Include a copy of the completed MVU-23, proof of the insurance settlement such as the insurer’s total-loss letter or settlement check documentation, and a copy of the title transfer paperwork showing the tax was paid.
The Salvage Title Step Runs Alongside
MVU-23 handles the tax side of the transfer. It does not handle the salvage title obligation that Massachusetts law imposes on the same transaction. When an insurance company acquires ownership of a vehicle it has determined to be a total loss, the insurer must surrender the existing certificate of title to the Registrar of Motor Vehicles and apply for a salvage title within ten days of acquiring the vehicle.4General Court of Massachusetts. Massachusetts General Laws Chapter 90D Section 20
If the insurer pays a total-loss settlement but you keep the vehicle, the obligation shifts. The insurer notifies the Registrar of your retention, and you must surrender your title and apply for a salvage title within ten days of the settlement.4General Court of Massachusetts. Massachusetts General Laws Chapter 90D Section 20 A vehicle carrying a salvage title cannot be registered for road use until the owner completes the state’s rebuilt-vehicle inspection process. You handle the salvage title and MVU-23 during the same RMV visit, but they’re two separate pieces of paperwork doing two different jobs.