Massachusetts charges a 6.25% sales tax on most goods, with some important exceptions

Massachusetts sales tax is a 6.25% tax added to the price of most items you buy in the state. The tax is calculated on the sale price and collected by the store at checkout. You pay it on clothing, electronics, furniture, and most other goods.

However, Massachusetts has a long list of items that are not taxed. Food you buy at a grocery store is tax-free. Prescription medications are tax-free. Certain clothing items under $175 are tax-free. These exemptions mean your actual tax bill depends on what you are buying, not just where you are buying it.

Key Takeaways

  • Massachusetts sales tax is 6.25% on most retail purchases, but groceries and prescription drugs are always exempt.
  • Clothing and footwear under $175 per item are tax-free; items over that threshold are taxed on the full price.
  • Restaurant meals, prepared foods, and alcohol are taxed, but raw ingredients from a grocery store are not.
  • Online purchases from out-of-state sellers may or may not be taxed depending on whether the seller has a physical presence in Massachusetts.

What is and is not taxed in Massachusetts

The state exempts entire categories of goods. Groceries — meaning unprepared food you cook at home — are never taxed. This includes produce, meat, dairy, bread, and canned goods. The moment food is prepared or ready to eat, the exemption ends. A rotisserie chicken from the grocery store is taxed. A sandwich from the deli counter is taxed. Raw chicken you buy to cook at home is not.

Prescription medications are always tax-free in Massachusetts, whether you buy them at a pharmacy or through mail order. Over-the-counter medications like aspirin or cold medicine are taxed as regular goods.

Clothing and footwear under $175 per item are tax-free. This applies to the price of a single item. If you buy a $200 coat, the full $200 is taxed. If you buy a $150 coat, no tax is charged. Accessories like hats, gloves, and belts under $175 are also exempt. Jewelry is taxed regardless of price.

Items that are always taxed include electronics, furniture, books, toys, tools, and household goods. Restaurant meals and takeout food are taxed. Alcohol and beverages are taxed. Gasoline is taxed at a different rate (currently 24 cents per gallon as of 2024, though this changes periodically).

How the tax is calculated at checkout

When you buy taxable items, the store calculates 6.25% of the sale price and adds it to your total. If you buy a $100 item, you pay $106.25. If you buy a $50 item, you pay $53.13. The tax is rounded to the nearest cent.

When you buy a mix of taxable and tax-free items, the store applies the tax only to the taxable ones. If you buy groceries and a book, the groceries have no tax and the book has 6.25% tax added. The receipt will usually show the tax amount separately so you can see what was taxed and what was not.

Sales tax on online and out-of-state purchases

If you buy something online from a retailer that has a physical store, warehouse, or office in Massachusetts, you pay Massachusetts sales tax. This includes Amazon (which has a fulfillment center in the state), Target, Walmart, and most major retailers.

If you buy from a small out-of-state seller with no presence in Massachusetts, the seller may not charge you sales tax at checkout. However, Massachusetts law requires you to pay use tax on those purchases — it is the same 6.25% rate, and you are supposed to report it when you file your state income tax return. In practice, most individual buyers do not report use tax, but the obligation exists.

The rules changed significantly in 2018 when the U.S. Supreme Court ruled that states can require online sellers to collect sales tax even if they have no physical presence in the state. Most large online retailers now collect Massachusetts sales tax automatically, regardless of where they are based.

Who collects the tax and where it goes

The store or seller collects the sales tax from you at the point of sale. They then send that money to the Massachusetts Department of Revenue on a regular schedule — usually monthly or quarterly, depending on the business size. The store does not keep the tax; it is held in trust for the state.

Sales tax revenue funds state services including education, infrastructure, and public safety. It is one of the largest sources of revenue for the Massachusetts state budget.

Special situations and local taxes

Massachusetts does not have local or city sales taxes. The 6.25% rate is the same everywhere in the state, whether you are shopping in Boston, Worcester, or Springfield. No city or town can add an extra tax on top of the state rate.

Some items have special tax treatment. Certain energy sources used for heating or cooling a home are taxed at a lower rate. Newspapers and periodicals are tax-free. Items sold by nonprofit organizations may be exempt depending on the organization's status and the type of item.

Frequently Asked Questions

Is clothing always tax-free in Massachusetts?

No. Clothing and footwear under $175 per item are tax-free. If a single item costs $175 or more, the entire purchase is taxed at 6.25%. Accessories like belts and scarves under $175 are also exempt, but jewelry is always taxed.

Do I pay sales tax on groceries?

No. Unprepared food you buy at a grocery store — produce, meat, dairy, bread, canned goods — is never taxed. Prepared foods like rotisserie chicken, deli sandwiches, and bakery items are taxed. Alcohol and beverages are also taxed.

What is use tax and do I have to pay it?

Use tax is a 6.25% tax on items you buy from out-of-state sellers who do not collect Massachusetts sales tax. You are supposed to report it on your state income tax return. Most individual buyers do not report it, but the obligation exists under Massachusetts law.

Can a city or town add extra sales tax on top of the state rate?

No. Massachusetts does not allow local sales taxes. The 6.25% state rate is the same in every city and town. No municipality can add a surcharge.

Is prescription medication taxed?

No. Prescription medications are always tax-free in Massachusetts. Over-the-counter medications like aspirin and cold medicine are taxed as regular goods.