Massachusetts has a sales tax of 6.25 percent on most goods

Massachusetts charges a 6.25 percent sales tax on tangible goods you buy in the state. This is the statewide rate that applies everywhere in Massachusetts — there are no additional local or county sales taxes on top of it. The tax is added at the register when you purchase items like clothing, electronics, furniture, and groceries (with some exceptions noted below).

The 6.25 percent rate has been in place since 1990. When you see a price tag, that amount does not include the sales tax — the tax is calculated and added when you check out. So a $100 item actually costs you $106.25 before any discounts or coupons.

Key Takeaways

  • Massachusetts charges 6.25 percent sales tax on most goods, with no additional local taxes added on top.
  • Groceries, prescription medications, and certain clothing items under $175 are exempt from sales tax in Massachusetts.
  • Services like haircuts, repairs, and professional fees are generally not subject to sales tax.
  • Online purchases from out-of-state sellers may or may not have Massachusetts sales tax collected, depending on the seller's policies and nexus in the state.

What is exempt from Massachusetts sales tax

Not everything you buy in Massachusetts is taxed. Groceries — items like milk, bread, vegetables, and meat — are completely exempt from sales tax. This applies to food you prepare at home, not prepared meals or restaurant food.

Prescription medications are also exempt. Over-the-counter medications like pain relievers and cold medicine are taxed, but anything you need a prescription for is not. Clothing and footwear under $175 per item are exempt as well. A $150 shirt is tax-free, but a $200 designer jacket is taxed on the full amount. The exemption applies to the individual item, not your total purchase.

Services are generally not taxed in Massachusetts. A haircut, car repair, plumbing work, or accounting consultation does not have sales tax added. However, if you buy a product as part of that service — like materials a contractor uses — the contractor may pay tax on those materials, which could be reflected in your bill.

How sales tax works when you shop online

Online shopping and sales tax in Massachusetts depends on where the seller is located and whether they have a physical presence in the state. If you buy from a Massachusetts-based retailer or a large national retailer with warehouses or offices in Massachusetts, they will collect and send 6.25 percent sales tax to the state.

If you buy from a small out-of-state seller with no presence in Massachusetts, they may not collect Massachusetts sales tax at checkout. However, Massachusetts residents are technically responsible for paying "use tax" on those purchases — a tax equal to the sales tax rate on items bought outside the state for use in Massachusetts. In practice, most individuals do not pay use tax unless they are audited, but it is a legal obligation.

Large online retailers like Amazon, Walmart, and Target now collect Massachusetts sales tax on most orders, even if shipped from out of state, because they meet the state's threshold for tax collection. Check your receipt to see whether tax was charged.

Restaurant meals and prepared food

Food you buy ready to eat — at a restaurant, deli, or bakery — is taxed at 6.25 percent. This includes takeout pizza, prepared salads from a grocery store hot bar, and coffee from a café. The distinction is whether the food is ready to eat when you buy it.

Some items blur the line. A rotisserie chicken from a supermarket is considered prepared food and is taxed. A raw chicken is not. Bakery items vary: a loaf of bread is exempt, but a frosted cake from the bakery counter is taxed because it is considered a prepared food item.

Sales tax on specific items

Certain purchases have their own rules. Motor vehicles are subject to sales tax in Massachusetts, calculated on the purchase price. Gasoline is taxed, but the tax is built into the per-gallon price you see at the pump — it is not added separately. Alcohol — beer, wine, and spirits — is taxed at the standard 6.25 percent rate, plus there are separate excise taxes on alcohol that vary by type.

Digital goods like e-books, software, and streaming subscriptions are generally not taxed in Massachusetts, though this area of tax law is still evolving. Newspapers and magazines are exempt from sales tax. Diapers and feminine hygiene products are exempt as of 2022.

Understanding the difference between sales tax and other taxes

Sales tax is separate from Massachusetts income tax and property tax. Income tax in Massachusetts is 5.05 percent on wages and investment income. Property tax is a local tax on real estate that varies by town. Sales tax applies only to purchases of goods and certain services, not to income or property.

Some states have different sales tax rates in different cities or counties. Massachusetts does not — the rate is uniform across the entire state at 6.25 percent. This makes it simpler to calculate what you will pay, but it also means you cannot save money by shopping in a different town.

What happens if a business does not collect sales tax

Businesses in Massachusetts are required by law to collect and send sales tax to the state Department of Revenue. If a business fails to do so, the state can audit them and require them to pay back taxes plus penalties and interest. As a customer, you are not responsible if a business fails to collect tax — the obligation is on the seller.

If you suspect a business is not collecting sales tax when it should, you can report it to the Massachusetts Department of Revenue. However, for most shoppers, this is not a concern — large retailers and most small businesses comply with the law.

Frequently Asked Questions

Do I have to pay sales tax if I buy something online from a Massachusetts store?

Yes, if the seller is based in Massachusetts or has a physical location in the state, they must collect 6.25 percent sales tax. This applies whether you pick up in-store or have it shipped to you.

Is clothing always tax-free in Massachusetts?

No. Clothing and footwear under $175 per item are exempt. Items priced at $175 or more are taxed. The limit applies to each individual piece, so you could buy five $100 shirts tax-free, but a $200 coat would be taxed.

What counts as groceries for the sales tax exemption?

Groceries are foods you prepare at home: produce, meat, dairy, bread, canned goods, and frozen vegetables. Prepared foods like rotisserie chicken, deli sandwiches, and restaurant meals are taxed. Seeds and plants you grow for food are also exempt.

Do I owe sales tax on items I buy from someone selling online from their home?

It depends on their location and size. If they are in Massachusetts, they should collect tax. If they are out of state and have no Massachusetts presence, they may not collect it, but you technically owe use tax. Most individuals do not pay use tax unless audited.

Is sales tax included in the price at Massachusetts stores?

No. The price on the tag or online does not include sales tax. The 6.25 percent is added when you check out, so your final bill will be higher than the advertised price.