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Massachusetts Sales Tax

On this page you will find handy sales and use tax information about Massachusetts.

How to use this page:

We’ve pulled in the information from all our Charts for a consolidated view by state.  Here you can see the sales tax rates and if the state has remote seller nexus rules. You can also see any sales tax holidays or amnesty programs that may exist, though these do not apply to all states.

Below the chart you can find any News & Tip item we have published that relates to Massachusetts that you can filter by topic. This will help you get informed on current and past legislation that has passed in the state.

State Sales Tax Rates
State Rate

6.250%
Range of Local Rates

0%
Local Rates Apply to Use Tax

N/A
Remote Seller Nexus Rules
ECONOMIC NEXUS

10/1/2017 – challenged but not stayed – see state notice

New thresholds: 10/1/2019
MARKETPLACE NEXUS

10/1/2019
Sales Tax Holidays
Annual Sales Tax Holiday

2024 Dates TBA

1. During the sales tax holiday, non-business sales at retail of single items of tangible personal property costing $2,500 or less are exempt from sales and use taxes, subject to certain exclusions.

Visit the Massachusetts DOR’s web page for more information.
Sales Tax Amnesty
Status

Inactive

Amnesty Filing Dates

April 1, 2010 - June 1, 2010

Go to Massachusetts Amnesty Page
AMNESTY INCLUSION PERIODS

Any taxable period ending on or before December 31, 2009.

TAX TYPES AND CONDITIONS

Existing business liabilities, including sales/use tax, sales tax on telecommunications services, meals tax, withholding income, room occupancy excise, gasoline excise, special fuels excise, and boat/recreational vehicles sales tax; Post amnesty penalty for taxpayers who fail to come forward of $500 will be assessed.
AMNESTY BENEFITS

All penalties waived.

Status

Inactive

Amnesty Filing Dates

September 1, 2014 - October 31, 2014

Go to Massachusetts Amnesty Page
AMNESTY INCLUSION PERIODS

Assessments prior to July 1, 2014.

TAX TYPES AND CONDITIONS

Sales and use taxes, boat and recreational vehicle sales taxes; cigarette, cigar, and smoking tobacco excise taxes; convention center financing fees on rooms, parking and certain tours; club alcoholic beverage excise taxes; gasoline excise taxes; individual income taxes; material man sales taxes; meals taxes, including local option taxes; room occupancy excise taxes, including local option taxes; special fuels excise taxes; and withholding taxes.
AMNESTY BENEFITS

Waiver of penalties.

Status

Inactive

Amnesty Filing Dates

March 16, 2015 - May 15, 2015

Go to Massachusetts Amnesty Page
AMNESTY INCLUSION PERIODS

Tax years or periods that were stated on a Notice of Assessment issued by the Commissioner of Revenue on or before January 1, 2015.

TAX TYPES AND CONDITIONS

Corporate excise (including financial institutions, insurance, public utilities, and banks), estate taxes, fiduciary income taxes and individual use tax on motor vehicles.
AMNESTY BENEFITS

Penalties waived.

Status

Inactive

Amnesty Filing Dates

April 1, 2016 - May 31, 2016

Go to Massachusetts Amnesty Page
AMNESTY INCLUSION PERIODS

Three-year limited lookback period.

TAX TYPES AND CONDITIONS

All tax types administered by the Massachusetts Department of Revenue are included, with the exception of Preferred Provider excise and those covered under the International Fuels Tax Agreement. More details.
AMNESTY BENEFITS

Tax penalties and any interest due on those penalties will be waived.

Administration Information
Streamlined Sales Tax Status

Advisory State
NUMBER OF TAXING AUTHORITIES

1 Sales Tax Jurisdiction

HOME RULE AUTHORITIES

N/A
Sales Tax Sourcing (Intrastate)

Destination
Sales Tax Return Due Date

The 20th of the month following the reporting period. Effective April 1, 2021, businesses that have collected and remitted $150,000+ in sales tax or room occupancy and meals tax in the preceding calendar year must remit tax through the 21st day of the month no later than the 25th day of the month.
Exemption Information
RESALE CERTIFICATE

Massachusetts Resale Certificate
TYPES OF EXEMPTIONS

Product types of exemptions: manufacturing, R&D, food (other than restaurant meals) and clothing items $175 or less, periodicals, admission tickets, utilities and heating fuel, telephone services to residential users, transportation services, personal or professional services, casual and isolated sales, resales, out-of-state delivery, drop shipments, periodicals, costumes, US Flags

 

Entity types of exemptions: exempt organizations, sales to 501(c)(3) organizations, government agencies, contractors, manufacturers

 

Massachusetts Exemption Certificate Forms
History & Fun Facts
HISTORY

  • Massachusetts first imposed its sales and use tax in 1966.
FUN FACTS
  • Dressing up for Halloween gets a tax break in Massachusetts. Costumes and children’s novelty costumes are exempt from sales tax if they are under $175.
  • Many states impose sales tax on prepared foods and takeaway foods. In Massachusetts, baked goods sold in units of 6 or more for takeout, including any variety of items totaling 6 or more servings qualify for the state’s sales tax exemption on food.

Massachusetts Sales Tax Holiday Taking Place August 12-13, 2023

Massachusetts will hold a sales tax holiday on Saturday, August 12 and Sunday, August 13, 2023. On these dates, most retail items up to $2500 purchased in Massachusetts for personal use will be exempt from sales tax.

Supreme Judicial Court of Massachusetts Issues Ruling on Cookie Nexus

The Supreme Judicial Court of Massachusetts has issued a ruling in favor of the taxpayer in relation to a state rule regarding vendors making internet sales which would allow the Massachusetts Commissioner of Revenue to consider the use of cookies, apps, and content delivery networks (CDNs) while deciding whether a vendor was in or out of the State of Massachusetts.

Massachusetts Cookie Nexus Challenged

In the US Supreme Court decision, South Dakota v. Wayfair, it was made clear that taxing sales from out-of-state sellers cannot be applied retroactively and electronic cookies do not constitute physical presence according to the Massachusetts Appellate Tax Board in a recent ruling.

State Notices & Resources for Remote Sellers

Use this state by state guide to find each state\’s initial guidance on how to proceed post-Wayfair, state resources such as FAQs, and any state activity such as going through a legislative process that impacts remote sellers.

Massachusetts Adds New Requirements to MassTaxConnect Returns

The Massachusetts Department of Revenue has added new lines on MassTaxConnect returns for taxpayers who collect and pay sales/use tax.

Massachusetts Enacts Provision for Accelerated Sales Tax Remittance

Massachusetts Gov. Charlie Baker signed the Fiscal Year 2021 budget into law, which contains a provision for accelerated sales tax remittance.

Economic Nexus State by State Chart

Key information such as effective dates, thresholds, and includable sales for out-of-state sellers making sales into states that have enacted economic nexus legislation both before and after the South Dakota v. Wayfair Supreme Court decision.

Massachusetts Rules Software Apportionment Rules Can Be Used for Abatement and Refunds

On May 21, 2021, the Supreme Judicial Court of Massachusetts upheld an appeals court ruling that the Commonwealth\’s rules allowing for apportionment of software for sales tax can be used for abatement after the tax has already been paid.

Massachusetts Provides Guidance Regarding Electronic Signatures

The Massachusetts Department of Revenue (DOR) has issued guidance regarding the DOR’s acceptance of electronic signatures on administrative forms.

Online Software Subscription Fees Taxable in Massachusetts

Massachusetts found that a taxpayer’s subscription fees for online software products are subject to sales tax as sales of tangible personal property.

Sales Tax Nuances of Trade Show Attendance

Trade show attendance in another state can create physical nexus and trigger sales tax obligations. Learn key nuances of trade show rules across the states.

Massachusetts Court Dismisses Lawsuit Regarding Retroactive Application of Economic Nexus Regulation

The Massachusetts Superior Court dismissed a lawsuit filed by online retailers regarding retroactive application of the state’s economic nexus regulation.

Massachusetts Proposes New Economic Nexus Regulation

Taking effect October 1, 2017, Massachusetts has taken an alternative approach to pure economic nexus approaches used by other states, proposing that certain activities internet vendors engage with do meet the substantial physical presence standard.

Massachusetts Establishes New Economic Nexus Threshold and Enacts Marketplace Nexus Legislation

Massachusetts has enacted legislation that creates new requirements for remote retailers and marketplace facilitators, effective October 1, 2019.

Massachusetts Makes Changes to Small Business Energy Exemption

Massachusetts has made changes to its procedure to qualify for the state’s small business energy sales and use tax exemption.

House Introduces Online Sales Simplicity and Small Business Relief Act of 2018

On September 13, 2018, Rep. Jim Sensenbrenner (R-WI) and additional U.S. House members introduced the Online Sales Simplicity and Small Business Relief Act of 2018.

Massachusetts Creates Permanent Annual Sales Tax Holiday

Massachusetts enacted a permanent sales tax holiday held annually over a weekend in August beginning in 2019.

Remote Seller Resources

Comprehensive list of resources for remote sellers following the South Dakota v. Wayfair Supreme Court decision – including state notices, videos, articles, training opportunities, and more.

U.S. Supreme Court Issues Decision In South Dakota v. Wayfair

On June 21, 2018, the U.S. Supreme Court issued its decision in the South Dakota v. Wayfair case, ruling in favor of South Dakota and overturning Quill’s physical presence rule.

South Dakota v. Wayfair Analysis & Predictions: Sales Tax Experts Weigh-In

Sales tax experts lend their insight into and predictions for one of the most important U.S. Supreme Court decisions regarding sales tax in decades, South Dakota v. Wayfair.

Record Number of Sellers Participate in 2017 MTC Amnesty Program

The volume of applicants for the 2017 online marketplace seller tax amnesty program overwhelmed the Multistate Tax Commission.

Multistate Tax Commission Announces Tax Amnesty Program for Online Sellers

The MTC organized a tax amnesty program for online sellers, running from August 17 to November 1, 2017. The voluntary disclosure program allowed sellers to start remitting sales tax on future sales without penalty or liability for unpaid, prior accumulated sales tax in 25 participating states.

No Regulation Without Representation Act of 2017 Introduced

Under the proposed House bill, a state may tax or regulate a person’s activity in interstate commerce only when the person is physically present in the state during the period in which the tax or regulation is imposed.

Congress Introduces Marketplace Fairness Act of 2017 and Remote Transactions Parity Act of 2017

Introduced on April 27, 2017, the Marketplace Fairness Act of 2017, if enacted, would authorize states meeting certain requirements to require remote sellers that do not meet a small seller exception to collect their state and local sales and use taxes.