Food, clothing items under $175, admissions sales, and most utilities and heating fuel are exempt from the Massachusetts sales tax. If you are a Massachusetts business owner, you can learn more about how to collect and file your Massachusetts sales tax return at the 2023 Massachusetts Sales Tax Handbook.
Sales Tax Rate
The Massachusetts sales tax is 6.25% of the sales price or rental charge of tangible personal property (including gas, electricity, and steam) sold or rented in Massachusetts. Clothing has a tax rate when you spend over $175 and a special local sales tax of 0.75% may apply to meals purchased in some localities.
Clothing Tax Exemptions
Clothing is generally exempt from the sales tax. However, any individual clothing item that costs more than $175 is taxable on the amount it goes over $175.
The vast majority of clothing products, including ordinary shoes and even shoelaces, are free from sales tax if they have a price tag of less than $175. For items that cost more, sales tax is only due on the amount over $175.
Tax-Free Weekend in Massachusetts
The 2023 tax-free weekend in Massachusetts began on Saturday, August 12, and ran through Sunday, August 13. While Massachusetts exempted more items from sales tax than many other states do during their tax holidays, exclusions still applied. For individual clothing items that exceed $175, only the amount over $175 was taxable.
Common Questions about Sales Tax in Massachusetts
- Is there MA sales tax on clothing? No, as long as the item costs less than $175.
- Can you buy a car on tax-free weekend in MA? No, cars are excluded from the tax holiday.
- What is not taxed in MA? Groceries, prescription drugs, and certain clothing, among other items.
- Are digital products taxable in Massachusetts? Yes, digital products like SaaS are taxable in Massachusetts.
- Are services taxable in Massachusetts? Most services are exempt unless sold with a taxable item.
Sales Tax Exemptions
While the Massachusetts sales tax of 6.25% applies to most transactions, certain items may be exempt from taxation. Examples of exemptions are most types of food and grocery products, certain sanitation and health care items, periodicals, and clothing costing $175 or less.
Business Requirements
Businesses normally making taxable sales must participate in the sales tax holiday, including internet vendors. There are specific steps to register for a Massachusetts Sales Tax Permit and to fill out a Massachusetts Resale Certificate for business owners.
Additional Information
For more detailed information on Massachusetts sales tax exemptions, visit the official state resources, or get expert advice for navigating the complexities of sales tax filing in the state.
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