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. The following items are still taxable during the sales tax holiday and do not qualify for the exemption:

        • Meals
        • Motor vehicles
        • Motorboats
        • Telecommunications services
        • Gas
        • Steam
        • Electricity
        • Tobacco products
        • Marijuana or marijuana products
        • Alcoholic beverages
        • Any single item whose price is more than $2500

Internet sales qualify for the sales tax holiday exemption if the purchaser orders and pays for an eligible item over the internet during the sales tax holiday and during Eastern Daylight Time. No sales tax is due on the purchase even if delivery of the item occurs after the sales tax holiday.

Layaway sales do not qualify for the sales tax holiday.

If an individual rents an item that qualifies for the sales tax holiday, they can use the sales tax holiday for rentals up to 30 days if the rental is paid for in full on the holiday weekend. Exempt rentals do not include motor vehicles or motorboats.

All retailers must participate in the sales tax holiday if the retailer normally makes taxable sales of tangible personal property in Massachusetts or to purchasers in Massachusetts and is open for business on August 12 and 13.

If an individual spends more than $2500 on an item, the entire amount paid for the item is subject to sales tax, not just the amount that exceeds that threshold.

Individuals are allowed to purchase multiple items that cost $2500 or less tax-free during the sales tax holiday, even if the combined items cost more than $2500.

If an individual is charged sales tax in error during the sales tax holiday, the retailer is responsible for refunding the tax paid.

Note that the sales tax holiday does not apply to purchases by individuals for business use and purchases by corporations or other businesses.

(Sales Tax Holiday Frequently Asked Questions,

Posted on August 14, 2023