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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

2026 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.

Status

Inactive

Amnesty Filing Dates

November 1, 2024 - December 30, 2024

Go to Massachusetts Amnesty Page
AMNESTY INCLUSION PERIODS

All filing periods with a return due date on or before December 31, 2024

TAX TYPES AND CONDITIONS

To have eligible penalties waived, you must:

  • Be an eligible taxpayer
  • Submit an amnesty request on the MassTaxConnect website beginning November 1, 2024
  • Pay all tax and interest included in the amnesty request
  • File all required returns with the Massachusetts Department of Revenue (DOR) by December 30, 2024

Note that sales tax is one of the eligible tax types, among many others. For more information on eligible and ineligible tax types, visit the Mass.gov webpage.
AMNESTY BENEFITS

Penalties will be waived for failure to file a return or pay tax or estimated tax due for returns due on or before December 31, 2024, not including interest.

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: Aug. 13 – Aug. 14, 2005

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

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.

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 Court Rules on Drop Shipments

A Massachusetts court found that a wholesale distributor was not responsible for sales or use tax on shipments it made on behalf of internet retailers.

Massachusetts Discusses Sales Tax Changes

The Massachusetts Department of Revenue has published a release that details changes in Chapter 262 sales and use tax law.

Individuals to pay use tax annually in Massachusetts.

Individuals are responsible for use tax on purchases made after January 1, 2004 for which they did not pay Massachusetts sales tax.

Massachusetts Amends Definition of Retail Sale

The definition of \”sale at retail\” or \”retail sale\” has been amended to include a provision regarding the scenario of when tangible personal property is physically delivered by an owner, to the ultimate purchaser in Massachusetts, or to any person for redelivery to the purchaser (i.e. drop shipment), the deliverer shall be deemed the vendor of the property.

Massachusetts clarifies taxability of catalogues.

An amendment was made to Massachusetts law to better explain the term “direct and cooperative direct mail promotional advertising materials.” Under the newly clarified law, this term is defined as “individual discount coupons or advertising leaflets incorporating the coupons within…

Massachusetts Sales Tax Holiday

Non-business sales at retail will be exempt from Massachusetts sales tax on tangible personal property purchased on August 14, 2004.

Massachusetts Corporation Eligible For Abatement When Selling “Multi-Product” Services at a Discount

A corporation in Massachusetts which sold multi-product services and separately stated each service on the invoice, was eligible to apply for an abatement of overpaid sales taxes collected and remitted.

Massachusetts issues clarification on taxation of motor vehicle leases

Massachusetts has released a DOR Directive describing the taxability of multiple types of transactions associated with the leasing of motor vehicles.

Massachusetts Kitchen Remodeler Not Required to Collect Tax

Classic Kitchens, Inc. v Commissioner of Revenue found that a kitchen remodeling business was not required to collect tax on partially constructed cabinets and countertops.

Massachusetts retrieval of medical records not taxable

Fees charged for the retrieval and transmission of medical records and health data to customers were exempt from Massachusetts sales and use tax.

Massachusetts Announces New Electronic Payment Requirement

As of January 1, 2004, all businesses remitting $10,000 or more per year for certain taxes will be required to file and pay electronically.

Massachusetts retrieval of health data exempt

Fees charged by a company for retrieval of health and medical records for its customers are not subject to sales and use taxes.

If a lease in Massachusetts is contractually changed midstream through an original contract, sales tax payments can be appropriately adjusted.

Massachusetts law states that a lessor must continue to make monthly sales tax payments on an accrual basis on a lease as payments become due, even if the lessee fails to make payments to the lessor.

Massachusetts Telecom Tax Not Imposed

A new 911 surcharge will appear on telephone customers\’ land line monthly bills beginning September 1, 2003.

Previously leased vehicles in Massachusetts explained.

The sale of a previously leased vehicle directly to a lessee using a “purchase option” under a lease agreement is subject to use tax in the state of Massachusetts. However, previously leased vehicles that are sold directly to a dealer…

Massachusetts Vendor Credits

If sales or use tax has been erroneously paid since January 1, 2000, taxpayers will no longer be eligible for vendor credits when the overpayment is discovered on audit and the statute of limitations for seeking abatement has passed.

Massachusetts modifies the taxation of prepaid calling arrangements

In Massachusetts, the sale of \”prepaid calling arrangements\” should now be taxed at the point of use rather than the point of sale.

Massachusetts has outlined the taxability treatment for final lease adjustments related to “TRAC Leases.”

TRAC (Terminal Rental Adjustment Clause) is the clause that allows for an adjustment to be made when the lease expires.

Massachusetts Concrete/Asphalt Installers Are Contractors

All installers of concrete and asphalt in Massachusetts will now be considered contractors for collecting sales and use tax starting October 1, 2002.

Massachusetts alternative location sale.

A discount chain was subject to Massachusetts sales and use tax when merchandise was sold in Massachusetts but arranged to be picked up by a customer in New Hampshire, which has no sales tax. The retail appliance and electronics store…

Environmental control equipment exemption in Massachusetts.

If machinery and equipment is used directly and exclusively in the manufacturing process of medical and pharmaceutical devices such that they are used to maintain a clean air environment for the manufacturing process, then they are exempt from sales tax.…