In Massachusetts, certain items are exempt from the sales tax. Notable exemptions include most food and grocery products (excluding restaurant meals), sanitation and health care items, periodicals, clothing costing less than $175, and prescribed medical devices.
Exempt Items
- Most food and groceries (except restaurant meals)
- Sanitation and health care items
- Periodicals
- Clothing under $175
- Prescribed medical devices
To be exempt from the Massachusetts tax, an authorized federal employee must present a GSA card with appropriate identification at the time of purchase. Forms ST-2 and ST-5 are not required for such purchases.
Taxable Items and Small Business Exemption
Tangible personal property and certain telecommunication services are generally taxable. Massachusetts has a 6.25% sales tax rate, and when less tax is paid to another state, Massachusetts use tax applies as the difference.
E-commerce businesses without a nexus in Massachusetts are not required to collect sales tax from local customers. However, those with nexus must register and collect sales tax on taxable sales.
All businesses, including internet vendors, are obliged to participate in the sales tax holiday.
Use tax is paid directly to Massachusetts by the purchaser. The average state sales tax rate is 6.25%, with no additional local sales tax. The sale of most goods and some services is subject to this tax, and returns are due by the 20th of the following month.
For further details on exemptions, please visit official state resources.
Sales Tax Returns Tips:
Filing sales tax returns can be complex. Here are five tips for smoother filing:
- Double-check Your Sales Tax Rates
Massachusetts Resale Certificate:
To fill a Massachusetts Resale Certificate (Form ST-4):
- Download the form
- Complete it following the provided instructions
Footwear and clothing items at $175 or less are exempt from sales tax, with only the amount above $175 being taxable.
As of 2023, Massachusetts’ sales tax rate remains at 6.25% with no local sales tax. This rate applies across the board, with specific items like groceries and prescription drugs being exempt.
There is a single type of sales tax permit for businesses in Massachusetts.
Tax returns and use tax payments are due the 20th of the month following the reporting period.