Massachusetts charges 6.25% sales tax on most retail purchases

Massachusetts sales tax is 6.25% of the purchase price on most goods and some services. This rate applies statewide — it does not vary by city or county. The tax is added at checkout when you buy something, so the final price you pay is higher than the listed price.

The state collects this tax and uses it to fund public services. When you buy an item in a store, online from a Massachusetts seller, or from an out-of-state seller that has a physical location in Massachusetts, the 6.25% is included in what you owe.

Key Takeaways

  • Massachusetts sales tax is 6.25% on most goods, and this rate is the same everywhere in the state.
  • Groceries, prescription medications, and certain medical equipment are exempt from sales tax.
  • Clothing and shoes under $175 per item are tax-free, but items over that amount are taxed.
  • Services like haircuts, repairs, and restaurant meals are generally taxed, though some exceptions exist.
  • Online purchases from out-of-state sellers may not have Massachusetts tax added, but you may owe use tax when you file your state return.

What is and is not taxed in Massachusetts

Not everything you buy is subject to the 6.25% tax. Groceries — food you cook at home — are exempt. This includes bread, milk, vegetables, meat, and frozen foods. However, prepared foods, restaurant meals, and items from a deli counter are taxed.

Prescription medications are not taxed. Over-the-counter medicines like pain relievers and cold medicine are taxed. Medical devices prescribed by a doctor — such as wheelchairs, hearing aids, and diabetic supplies — are exempt, but only if you have a prescription or doctor's order.

Clothing and shoes under $175 per item are tax-free. A pair of shoes for $100 has no tax. A winter coat for $200 is taxed on the full amount because it exceeds the threshold. The $175 limit applies to each individual item, not your total purchase.

Services are generally taxed. A haircut, car repair, plumbing work, and dry cleaning all have 6.25% added. Certain services are exempt — for example, labor on farm equipment and some vehicle repairs — but most personal and business services you encounter are taxed.

How sales tax works when you check out

At a physical store, the cashier rings up your items and the register calculates the tax automatically. The amount shown on your receipt is the tax owed on that purchase. You pay the total — the item price plus tax — at that moment.

Online, the process depends on where the seller is located. If you buy from a Massachusetts retailer with a store or warehouse in the state, Massachusetts tax is added to your order. If you buy from an out-of-state seller with no physical presence in Massachusetts, they may not add Massachusetts tax to your bill.

When you do not pay sales tax at purchase — usually because you bought from an out-of-state seller — you may owe use tax instead. Use tax is the same 6.25% rate and covers items you brought into Massachusetts without paying sales tax. Most people do not report use tax on their state return, but technically it is owed on taxable purchases.

Restaurant meals and prepared food

Meals at restaurants, cafes, and food courts are taxed at 6.25%. This includes sandwiches from a deli counter, pizza, coffee, and any prepared food you eat on premises or take home. The tax applies whether you dine in or order takeout.

Grocery store items remain tax-free even if you buy them from a prepared foods section. The distinction is whether the food is ready to eat. A rotisserie chicken from a grocery store deli is taxed. Raw chicken from the meat counter is not.

Tax-exempt purchases and special cases

Certain buyers do not pay sales tax on specific purchases. Nonprofit organizations with a tax-exempt certificate can buy goods without tax. Farmers buying equipment for agricultural use are exempt. Manufacturers buying machinery and materials for production may be exempt under certain conditions.

If you are buying something for a tax-exempt organization or business, you will need to provide a resale certificate or exemption certificate at the time of purchase. The seller will not add tax if you show the proper documentation.

Energy — electricity, natural gas, and heating oil — is taxed at a lower rate of 5% instead of 6.25%. This reduced rate has been in place for many years and applies to residential and business use.

Understanding the difference between sales tax and use tax

Sales tax is what you pay when you buy something in Massachusetts. Use tax is what you owe if you buy something outside Massachusetts and bring it into the state without paying sales tax. Both are 6.25%.

Use tax matters most for online shopping. If you order from a company with no Massachusetts location and no sales tax is charged, you technically owe use tax on that purchase. However, enforcement is limited, and most individual purchases are not tracked or reported.

Some states have agreements with online retailers to collect sales tax on their behalf. Massachusetts does not have such agreements with all retailers, so tax collection on out-of-state purchases remains inconsistent. When in doubt, assume you owe 6.25% on any taxable item you buy, regardless of where the seller is located.

Frequently Asked Questions

Do I pay sales tax on clothing?

Clothing and shoes under $175 per item are tax-free. Items over $175 are taxed on the full price. A $100 jacket has no tax. A $200 jacket is fully taxed. The limit applies to each piece, not your total bill.

Are groceries taxed in Massachusetts?

No. Food you buy to cook at home — bread, milk, vegetables, meat, frozen dinners — is not taxed. Prepared foods, restaurant meals, and deli items are taxed. The difference is whether the food is ready to eat.

What about prescription drugs?

Prescription medications are not taxed. Over-the-counter medicines like aspirin and cough syrup are taxed at 6.25%. Medical equipment prescribed by a doctor is also exempt, but you need a prescription or doctor's order to avoid the tax.

Do I owe tax on online purchases from out-of-state sellers?

If the seller has no physical location in Massachusetts, they may not add Massachusetts tax. You technically owe use tax on that purchase, but it is rarely enforced for individual shoppers. The rate would be the same 6.25%.

Is there a sales tax on services like haircuts or repairs?

Yes. Most services — haircuts, car repairs, plumbing, dry cleaning — are taxed at 6.25%. Some services are exempt, such as labor on farm equipment, but personal and business services you encounter regularly are taxed.