Massachusetts charges a 6.25% sales tax on most goods, and it applies at the register when you buy

Massachusetts sales tax is a percentage added to the price of items you buy in stores or online. The state rate is 6.25%, which means on a $100 purchase, you pay an extra $6.25. Some cities and towns add their own local tax on top of that — usually between 0.5% and 1% — so your total can range from 6.25% to 7.25% depending on where you shop.

The tax is collected by the store and sent to the state. You do not pay it separately; it is added to your bill at checkout. If you buy something online from a Massachusetts seller or a large national retailer, the tax is usually included in the total before you see the final price.

Key Takeaways

  • Massachusetts sales tax is 6.25% statewide, but some towns add 0.5% to 1% more, making your total tax between 6.25% and 7.25%.
  • Groceries, prescription medications, and clothing under $175 per item are exempt from sales tax in Massachusetts.
  • Online purchases from out-of-state sellers may not have tax added at checkout, but Massachusetts residents owe use tax on those items when they file their state tax return.
  • Restaurants and prepared foods are taxed, but raw ingredients you buy at a grocery store are not.

What is and is not taxed in Massachusetts

Not everything you buy is subject to sales tax. Groceries — items like milk, bread, vegetables, and meat — are tax-free. So are prescription medications filled by a pharmacist. Clothing and footwear under $175 per item are also exempt, which means a $150 shirt is tax-free but a $200 jacket is taxed.

Items that are taxed include restaurant meals, prepared foods from a deli counter, household supplies, electronics, furniture, and gasoline. If you buy a rotisserie chicken at a grocery store, you pay tax on it because it is prepared food. If you buy a raw chicken to cook at home, there is no tax.

Medical equipment like wheelchairs and hearing aids are tax-exempt. So are newspapers and magazines. Haircuts and other personal services are not subject to sales tax either.

How local taxes add to the state rate

While the state charges 6.25%, your city or town may add a local option sales tax. This local rate varies by municipality and ranges from 0.5% to 1%. For example, Boston adds 0.625%, so the total tax in Boston is 6.875%. Some towns add nothing, so you pay only the state rate of 6.25%.

You can find your town's local rate by searching "[your town name] sales tax rate" or by asking a cashier. The total tax is always shown on your receipt, so you will see the exact amount you paid.

Sales tax on online purchases and use tax

When you buy from a Massachusetts-based online store or from a large national retailer like Amazon, the sales tax is usually added at checkout. However, if you buy from a small out-of-state seller that does not have a physical presence in Massachusetts, the seller may not collect tax at the time of purchase.

In that case, you are supposed to pay use tax on the item. Use tax is the same rate as sales tax — 6.25% plus any local tax — but you pay it when you file your Massachusetts state tax return, not at the register. Many people do not know about this rule, but it is the law. If you bought a $500 item from an out-of-state seller with no tax collected, you would owe $31.25 in use tax (6.25% of $500) on your return.

In practice, most people do not report use tax on small purchases, and the state does not actively pursue individual shoppers. However, the obligation exists, and keeping receipts from out-of-state purchases is a good habit if you want to stay compliant.

Tax-exempt purchases and who qualifies

Certain organizations and people do not pay sales tax. Non-profit organizations with a state tax-exempt certificate can buy items tax-free for their operations. Resellers — businesses that buy goods to resell — can provide a resale certificate to avoid paying tax on their inventory purchases.

If you are a non-profit or a business, you will need to register with the Massachusetts Department of Revenue and obtain the appropriate certificate. Individual shoppers do not have a blanket exemption, but the exemptions listed above (groceries, prescription drugs, clothing under $175) explore to everyone.

Understanding the difference between sales tax and income tax

Sales tax and income tax are separate. Sales tax is what you pay when you buy something. Income tax is what you pay on money you earn. Massachusetts has both. The sales tax rate does not change based on your income, and paying sales tax does not reduce your income tax bill.

Some states have no sales tax but higher income tax. Massachusetts has both, which is why understanding each one matters when you are budgeting or filing taxes.

How to calculate what you will pay

To estimate the total cost of a purchase, multiply the price by your local tax rate. If you live in a town with a 6.875% total rate and you are buying a $50 item, multiply $50 by 0.06875 to get $3.44 in tax. Your total cost is $53.44.

Most stores display the tax-included total on the receipt, so you do not have to do this math yourself. But if you are shopping online or comparing prices, knowing your local rate helps you understand the final cost before you check out.

Frequently Asked Questions

Do I pay sales tax on groceries in Massachusetts?

No. Unprepared food like milk, bread, vegetables, and raw meat is tax-free. Prepared foods — rotisserie chicken, deli sandwiches, restaurant meals — are taxed. If you are unsure, ask the cashier whether a specific item is considered prepared or unprepared.

What is the sales tax rate in my town?

The state rate is 6.25%. Your town may add 0.5% to 1% on top of that. Search "[your town name] sales tax" online, call your town assessor's office, or ask a cashier at a local store. Your receipt will also show the exact rate applied.

Do I have to pay use tax on everything I buy online from out of state?

Technically yes, but only on items that would be taxed if you bought them in a Massachusetts store. Groceries and clothing under $175 are still exempt. You report use tax on your state return, though enforcement on individual shoppers is rare.

Are clothes always tax-free in Massachusetts?

Clothing and footwear under $175 per item are tax-free. A $150 shirt is exempt, but a $200 jacket is taxed. The $175 limit applies to each individual piece, not your total purchase.

Do prescription medications have sales tax?

No. Prescription drugs filled by a licensed pharmacist are tax-exempt. Over-the-counter medications like cold medicine or pain relievers are taxed because they are not prescribed.