Massachusetts Sales Tax: The Basics
Massachusetts charges a 6.25% sales tax on most retail purchases. This is a single statewide rate—it does not vary by city or county. When you buy something at a store or online from a Massachusetts retailer, 6.25% is added to your bill at checkout.
Some items are taxed at a lower rate, and some are not taxed at all. Food you cook at home, prescription medications, and certain clothing items under $175 are exempt. Restaurant meals, prepared foods, and non-prescription drugs are taxed at the full 6.25%.
Key Takeaways
- Massachusetts sales tax is 6.25% statewide with no local variations, applied at the point of sale.
- Groceries and unprepared food are not taxed, but restaurant meals and prepared foods are taxed at 6.25%.
- Clothing and footwear under $175 per item are exempt, but items over that threshold are fully taxed.
- Prescription medications are exempt, but over-the-counter drugs and vitamins are subject to the full 6.25% tax.
- Online purchases from Massachusetts sellers are taxed the same way as in-store purchases.
What Is and Is Not Taxed in Massachusetts
The exemptions in Massachusetts are narrower than in some states. Groceries—meaning food you take home to prepare—are not taxed. This includes raw meat, produce, bread, milk, and eggs. But the moment that food is prepared for when ready consumption, tax applies. A rotisserie chicken from the grocery store deli counter is taxed. A sandwich from a restaurant is taxed. A coffee and muffin from a café is taxed.
Clothing and footwear under $175 per item are exempt from tax. A $100 pair of shoes: no tax. A $200 pair of shoes: taxed at 6.25%. The $175 threshold applies to each individual item, not your total purchase. Accessories like hats, belts, and gloves are also exempt if under $175.
Prescription medications filled at a pharmacy are not taxed. Over-the-counter medications—pain relievers, cold medicine, antacids—are taxed at 6.25%. Vitamins and supplements are also taxed. Medical devices like crutches or wheelchairs are typically exempt, but this can depend on the specific item.
How Sales Tax Works on Online and Out-of-State Purchases
If you buy something online from a Massachusetts-based retailer, sales tax is added to your order. The retailer collects it and sends it to the state. This applies whether you pick up the item in-store or have it shipped.
If you buy from an out-of-state retailer and have it shipped to Massachusetts, whether tax is charged depends on the retailer's policies and where they are located. Large national retailers like Amazon typically charge Massachusetts sales tax on orders shipped to Massachusetts addresses. Smaller out-of-state retailers may not. You are not responsible for tracking this or paying tax yourself on purchases where the retailer did not collect it.
Services and What They Cost
Most services in Massachusetts are not subject to sales tax. Haircuts, car repairs, plumbing, dental work, and legal fees are not taxed. However, some services that involve a product are taxed on the product portion. If you have your car detailed, the labor is not taxed, but if they sell you a wax or coating as part of the service, that product may be taxed.
Telecommunications services—cell phone plans, internet, landline—are subject to a separate tax that is not the same as sales tax. This is a utility tax that appears as a line item on your bill, separate from the service charge itself.
Dining Out: Restaurant Tax Rules
All restaurant meals, whether you dine in or take out, are taxed at 6.25%. This includes fast food, casual restaurants, fine dining, and food trucks. The tax is calculated on the subtotal before tip.
Alcohol served in a restaurant is also subject to the 6.25% sales tax, plus a separate alcohol tax. If you buy a bottle of wine at a liquor store to take home, you pay sales tax on it. If you order that same wine at a restaurant, you pay both sales tax and the alcohol tax.
Who Collects and Where the Money Goes
The retailer or business collecting the tax is responsible for sending it to the Massachusetts Department of Revenue. As a customer, you do not file anything or track sales tax yourself. The tax is straightforward added to your purchase price at checkout.
Sales tax revenue in Massachusetts funds state operations and is not earmarked for a specific program. Unlike some states, Massachusetts does not have a local sales tax option, so all revenue goes to the state level.
Frequently Asked Questions
Do I pay sales tax on used items?
Sales tax applies to used items sold by a business, including used cars, used furniture, and used clothing from a resale shop. Private sales between individuals are not subject to sales tax. If you sell your used car to a friend, no tax is owed. If you sell it to a used car dealer, tax applies.
What about sales tax on a car purchase?
Motor vehicles are subject to sales tax in Massachusetts. The tax is calculated on the purchase price of the vehicle. You pay it at the time of sale, either to the dealer or when you register the vehicle with the Registry of Motor Vehicles, depending on the transaction type.
Is there a sales tax holiday in Massachusetts?
Massachusetts does not have an annual sales tax holiday. Some states offer a back-to-school tax-free weekend or similar events; Massachusetts does not. The 6.25% rate applies year-round to taxable items.
Do I owe sales tax if I buy something in another state and bring it home?
You do not owe Massachusetts sales tax on items you purchased in another state where you paid that state's sales tax. However, if you buy something tax-free in a state with no sales tax and bring it to Massachusetts, you do not owe Massachusetts tax retroactively. Sales tax is paid where the purchase occurs, not where you live.
What if the receipt shows the wrong tax amount?
Check your receipt against the 6.25% rate. If a retailer charged you more than 6.25%, ask them to correct it. If they charged you less, you do not owe the difference. Retailers are responsible for collecting the correct amount; customers are not liable for underpayment by the business.