Taxable Items and Exemptions
Chapter 64H, Section 2 of the Massachusetts General Laws imposes a five percent sales tax on retail sales of tangible personal property, unless exempted. Golf jackets, gym uniforms, and baseball caps are non-taxable. Casual and isolated sales are infrequent, nonrecurring transactions by non-regular sellers.
In contrast, Pennsylvania’s tax regulations on shoes are different from Massachusetts. Ordinary shoes, sneakers are not taxable. However, formal wear, ski boots, bathing shoes, bowling, golf, baseball, football shoes are taxed. Accessories on footwear are not taxed.
Specific Rules in Massachusetts
Tangible personal property is taxable in Massachusetts, with these exceptions:
- Clothing under $175
- Most food and groceries
- Several healthcare and sanitation items
- Medical devices
- Periodicals
Shipping and installation of tangible goods can be complicated regarding sales tax laws. Additional tax-exempt categories in Massachusetts include jewelry under $175. If sales tax paid under 6.25% to other states requires Massachusetts use tax for the difference in rates.
The Massachusetts sales tax holiday is August 12-13, 2023. Tax-free items include:
- Clothing
- School supplies
- Laptops under $2,500
Meals and motor vehicles are taxable.
Clothing Taxation Details
Clothing and footwear under $175 are exempt from sales tax. Over $175, items are taxed only on the amount exceeding $175. For example, a $200 pair of jeans would be taxed on $25 at 6.25%, totaling $1.56 in sales tax.
Tax Rates and Filing Information
The Massachusetts sales tax is 6.25% on tangible personal property, including certain telecommunication services sold or rented in Massachusetts. There is a flat 5% income tax rate, while some income has a different rate. The 2022 tax filing deadline was April 18, 2023, with extensions being automatic if 80% of tax due was paid.
Online Business and Tax Holidays
For ecommerce businesses without nexus in Massachusetts, no sales tax collection from Massachusetts customers is required. All businesses, including internet vendors, must participate in the sales tax holiday.
There is a limit on the retail value for the sales tax holiday exemption. If tax is paid to a state without a reciprocal agreement with Massachusetts, the tax credit does not apply.
Resale Certificates and Other States’ Taxes
To fill out the Massachusetts Resale Certificate – Form ST-4, download the form.
The Massachusetts state sales tax as of 2023 is 6.25%, with no local sales tax collected in addition to the state tax. Exemptions vary by state.
Contact Information
For more information, contact the Regulations Bureau or chat with an expert.
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