In Massachusetts, the sales tax permit, also called seller’s permit or sales and use tax permit, allows businesses to collect and remit sales tax. The Massachusetts sales tax rate is 6.25%. To register for a sales tax permit, gather your business information and apply through the Massachusetts Department of Revenue website. There is no fee to obtain a Massachusetts sales tax permit.
How to Register
General Information
Online sellers in Massachusetts need a Certificate of Registration to sell or lease taxable products or services. Expect a temporary permit in 48 hours when registering online. The Sales and Use Tax Registration Certificate arrives in 7-10 days. Display the certificate at business locations. No renewals needed, but update changes.
Employee Tax Information
Employees require state and federal EINs to withhold taxes. The EINs allow remitting employment taxes.
Contact Information
Contact the Department of Revenue at 800-392-6089 weekdays from 8:30-4 with permit questions, or information can be provided to register a permit for you. Ensure to have your business details ready.
Exemption and Filing
In Massachusetts, use Form ST-2 for sales tax exemption at purchase and also file Form ST-5. Pay sales tax online and print the receipt.
State Specific Information
The process for obtaining permits can vary by state. For instance, the Texas Comptroller takes 2-4 weeks to issue permits after signed applications are received, while Illinois and California have online permit applications. Colorado requires permits for selling taxable goods.
Businesses with sales in Massachusetts have sales tax nexus. Register online using the MassTaxConnect website. You will receive a temporary permit immediately. Display the final permit at your place of business.
Massachusetts first enacted sales tax in 1966 at a rate of 3%. Increases over the decades brought the rate to where it stands now at 6.25%. Local option taxes can add up to 2.5%. In addition, Massachusetts also levies excise taxes.
If selling even temporarily in Massachusetts, a permit is necessary. You must collect the 6.25% rate from every buyer shipping to the state and collect tax on shipping charges.
To comply with sales tax regulations, first register for a sales tax permit on the Department of Revenue website. Selling without a permit is illegal, and sellers must manage the taxes collected to remain compliant with state laws. Use a Sales Tax Calculator to determine your exact sales tax rate and total purchase amount.