Massachusetts charges a 6.25% sales tax on most goods, with a few important exceptions
When you buy something in Massachusetts, the state adds 6.25% to the price at checkout. This is the statewide sales tax rate. Some cities and towns add a local tax on top of that — usually 0.75% — which means your total could be 7% or higher depending on where you shop. The tax applies to physical items you take home, but not to services like haircuts, repairs, or restaurant meals (though prepared food has its own rules).
The person or business selling the item collects the tax from you and sends it to the Massachusetts Department of Revenue. You do not pay it separately — it is added to your bill. If you buy something online from a seller with a physical location in Massachusetts, or from a large national retailer, you will pay Massachusetts sales tax even if the item ships to you from out of state.
Key Takeaways
- Massachusetts sales tax is 6.25% statewide, and many cities add 0.75% on top, bringing your total to 7% or higher.
- Clothing and shoes under $175 per item are exempt from sales tax in Massachusetts.
- Groceries, prescription medications, and medical devices are not subject to sales tax.
- Restaurant meals and prepared foods are taxed, but raw ingredients you buy at a grocery store are not.
- Online purchases from retailers with Massachusetts locations are taxed the same way as in-store purchases.
What is and is not taxed in Massachusetts
Not everything you buy is subject to the 6.25% tax. Groceries — raw food you cook at home — are completely exempt. This includes produce, meat, dairy, bread, and pantry staples. The moment food is prepared or ready to eat, the rules change: a sandwich from a deli counter is taxed, but the ingredients to make a sandwich at home are not.
Clothing and shoes under $175 per item are also exempt. If you buy a pair of shoes for $150, no tax. If you buy a winter coat for $200, you pay tax on the full amount because it exceeds the threshold. Accessories like hats, belts, and gloves under $175 are exempt too. This threshold applies per item, not per purchase — so you could buy ten $100 shirts tax-free, but one $200 shirt would be taxed.
Prescription medications and certain medical devices are exempt. Over-the-counter medications like cold medicine or pain relievers are taxed, but a prescription filled at a pharmacy is not. Diabetic testing supplies, hearing aids, and mobility devices also avoid the tax.
Local add-on taxes vary by city and town
While the state rate is 6.25%, many Massachusetts cities and towns have voted to add a local option sales tax of 0.75%. This means your actual tax rate depends on where you make the purchase. Boston, for example, has a 7% total rate (6.25% state plus 0.75% local). Some towns have no local add-on, so you pay only the 6.25% state rate.
You can find your town's rate by searching "Massachusetts sales tax by city" or asking the cashier. The local tax goes to the city or town where the sale happens, not where you live. If you buy something in Boston but live in a town with no local tax, you still pay Boston's 7% rate at that register.
How sales tax works on online purchases
If you order from a website, whether the seller is in Massachusetts or across the country, the tax rules depend on the seller's location and size. Large retailers like Amazon, Target, and Walmart collect Massachusetts sales tax on orders shipped to Massachusetts addresses because they have a physical presence in the state. Smaller online-only sellers may not collect tax at checkout, though Massachusetts law technically requires you to report and pay the tax yourself on your state return — in practice, very few people do this.
The safest assumption: if you are buying from a major national retailer with stores in Massachusetts, you will pay tax. If you are buying from a small independent seller with no Massachusetts location, you probably will not see tax added, but the law says you owe it.
Tax-exempt purchases and special cases
Certain organizations and people do not pay sales tax. Nonprofits with a state exemption certificate can buy items tax-free for their operations. Resellers — people who buy items to resell them — can use a resale certificate to avoid paying tax on their purchases (they collect tax from their customers instead). If you are starting a small business, you can register for a resale certificate through the Massachusetts Department of Revenue.
Some items fall into gray areas. Digital products like e-books, software, and streaming subscriptions are generally not taxed in Massachusetts. Newspapers and magazines are not taxed. Gasoline has its own excise tax separate from sales tax. If you are unsure whether something is taxed, the Department of Revenue website has a searchable list of taxable and exempt items.
What happens if a business does not collect sales tax
If you notice a Massachusetts business did not charge you sales tax when it should have, you are not responsible for reporting it or paying it yourself — that is the business's obligation. The Massachusetts Department of Revenue audits businesses to make sure they are collecting and sending in the correct amount. If a business is caught not collecting tax, it faces penalties and back taxes.
As a customer, your only concern is that the price you see should include tax (or clearly show tax being added). If a store advertises a price and then charges you tax at the register without warning, that is normal and legal — but the store should be clear about it.
Frequently Asked Questions
Do I pay sales tax on clothes under $175?
No. Any single clothing or shoe item under $175 is exempt from Massachusetts sales tax. If the item costs $175 or more, the entire purchase is taxed. Accessories like belts, hats, and scarves under $175 are also exempt.
Is restaurant food taxed in Massachusetts?
Yes. Any prepared or ready-to-eat food is taxed, including restaurant meals, deli sandwiches, and takeout pizza. Raw groceries you buy to cook at home are not taxed. The difference is whether the food is ready to eat when you buy it.
What is the total sales tax rate where I live?
The state rate is 6.25%. Your town may add 0.75%, making it 7%. To find your exact rate, search your city or town name plus "Massachusetts sales tax" or call your local tax assessor's office. The rate depends on where you make the purchase, not where you live.
Do I pay sales tax on online purchases from out-of-state sellers?
Large retailers with stores or warehouses in Massachusetts collect sales tax on orders shipped to Massachusetts. Small sellers without a Massachusetts location usually do not, though technically Massachusetts law says you owe the tax. In practice, most people do not report or pay this tax on their returns.
Are prescription medications taxed?
No. Prescription medications are exempt from sales tax. Over-the-counter medications like cold medicine and pain relievers are taxed. Diabetic supplies, hearing aids, and other medical devices are also exempt.