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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.

Freight Insurance Charges Taxable in Massachusetts

Freight insurance fees that a supplier charged to customers in connection with goods sold are included in gross receipts subject to Massachusetts sales tax. The supplier uses the proceeds from the freight insurance charges to pay for goods that are…

Federal Government Introduces New Remote Seller Bill

The federal Marketplace Fairness Act of 2013 was introduced in the House of Representatives and the Senate on February 14, 2013.

Medical Practice Management Services Not Taxable in Massachusetts

A company\’s sales of web-based services to physicians to help with management of records, billing, and communications are not subject to Massachusetts sales and use tax.

Retailer in Massachusetts Not Entitled to Reimbursement of Sales Tax on Bad Debt

A retailer with stores in Massachusetts was not entitled to reimbursement of Massachusetts sales tax paid on uncollectible credit card sales because the sales tax was paid by the credit card issuing bank. The uncollectible purchases were made on credit…

Massachusetts Introduces SST Conformity Legislation

Massachusetts has introduced legislation that would conform its laws to the Streamlined Sales and Use Tax (SST) Agreement.

Massachusetts Sales Tax Holiday Enacted

Massachusetts Gov. Deval Patrick has signed a bill that provides for a sales tax holiday effective August 14 and August 15, 2010.

Massachusetts Provides Limited Amnesty for Business Taxpayers

The Massachusetts Department of Revenue has established a two-month amnesty program for business taxpayers with existing tax liabilities. The program will run from April 1, 2010 to June 1, 2010 and will apply to tax years or periods ending on…

Beverages Sold with Bartending Services are Meals in Massachusetts

A liquor store, who sometimes delivers beverages to a customer and also provides related bartending services, was found subject to Massachusetts sales/meals tax. The store contended that it is not a restaurant and is not making sales of “meals” subject…

Massachusetts Authorizes an Amnesty Program

The Massachusetts Governor signed legislation to implement a two-month tax amnesty program that is set to end no later than June 30, 2010.

Massachusetts Increases State Sales Tax Rate by 1.25%

Massachusetts has recently enacted legislature that increased the general sales and use tax rate from 5 to 6.25 percent, effective August 1, 2009.

Massachusetts Provides Details on Limited Amnesty Program

The Massachusetts Commissioner of Revenue has established a two month amnesty program commencing on March 1, 2009 and ending on April 30, 2009.

Massachusetts Enacted Tax Amnesty Program

The Massachusetts Governor signed legislation to implement a two-month tax amnesty program that is set to end no later than June 30, 2009.

Massachusetts Determines Indirect Cost Items Do Not Qualify for Resale Exemption

The Massachusetts Appellate Tax Board determined that a defense contractor\’s purchases of indirect cost items connected to its performance of government contracts did not qualify for the resale sales tax exemption.

Massachusetts Bill would Authorize Study on Streamlined Compliance

Legislation has been proposed for MA to prepare a brief study and draft legislation for the possibility of compliance with the Streamlined Sales and Use Tax Agreement.

Taxability of Complimentary and Discounted Rooms in Massachusetts

Directive 06-7, recently issued by the Massachusetts Department of Revenue, explains how room occupancy excise taxes apply to both complimentary and discounted hotel rooms. The room occupancy tax must be collected if all of the following are present: 1) the…

Massachusetts Addresses Changes in Room Rental Taxation

As a result of a recent court decision, the Massachusetts Department of Revenue has revisited their position on the taxation of room rentals.

Massachusetts Rules Service Charge Was Sale at Retail

Massachusetts found that a charge which provided both a service and a transfer of tangible personal property was subject to state sales tax.

Massachusetts Creates Sales Tax Holiday Weekend

Governor Mitt Romney of Massachusetts has signed legislation creating a sales tax holiday weekend, effective August 12-13, 2006.

Prewritten Software Treated As Tangible Personal Property in MA

Effective April 1, 2006, Massachusetts will treat the sale of prewritten computer software, however delivered, as a taxable sale of tangible personal property, including transfers of software (including licenses, leases, and upgrades) through electronic, telephonic, or other comparable methods. Custom…

Massachusetts Fast Food Restaurant Not Liable for Use Tax on Meal Toys.

A fast food restaurant was not liable for Massachusetts use tax on purchases of toys for its children\’s meals because the restaurant did not use the toys for promotional purposes, but rather sold the toys as a component of the meals that included them.

Massachusetts Position on Taxability of Direct Mail Promotional Advertising Materials

Following the decision of the Massachusetts Appeals Court case Bloomingdale\’s, Inc. v. Commissioner of Revenue, the Massachusetts Department of Revenue clarified their position on sales and use taxability of direct mail promotional advertising materials.

Massachusetts Sales Tax Holiday: Aug. 13 – Aug. 14, 2005

All tangible personal property under $2500. Excluding telecommunications, gas, steam, electricity, motor vehicles, motor boats, tobacco and meals.

Massachusetts Discusses Tax Treatment of Water Purification Plant

The Massachusetts DOR has issued a letter ruling outlining certain sales and use tax exemptions afforded to a water purification plant.

Massachusetts Appeals Court Finds Advertising Materials to be Exempt Direct Mail Materials

The Massachusetts Appeals Court recently found that a taxpayer\’s purchase of direct mail advertising materials was not subject to sales or use tax.