Massachusetts charges 6.25% sales tax on most purchases

Massachusetts has a single statewide sales tax rate of 6.25%. This rate applies to tangible goods — items you can touch and take home — in most categories. Some cities and towns do not add a local sales tax on top of the state rate, so what you pay at checkout is 6.25% in those places.

A few Massachusetts municipalities have adopted a local option sales tax of 0.75%, which stacks on top of the state rate. This brings the total to 7% in those towns. The local tax applies only to certain categories: meals, hotel stays, and car rentals. Not all towns have adopted it, so the rate you pay depends on where you are shopping or dining.

Key Takeaways

  • The statewide Massachusetts sales tax is 6.25% on tangible goods in all towns.
  • Some municipalities add a 0.75% local tax on meals, hotel rooms, and car rentals, bringing the total to 7% in those places.
  • Groceries, prescription medications, and medical devices are exempt from sales tax in Massachusetts.
  • You can find out whether your town has the local option tax by checking your receipt or contacting the town assessor's office.

What the 6.25% rate covers

The state sales tax of 6.25% applies to clothing, electronics, furniture, appliances, books, toys, and most other physical items you purchase in a store or online. It also applies to prepared food — meals you buy ready to eat from a restaurant, deli, or food truck.

When you order something online from a retailer outside Massachusetts, you may still owe sales tax if the retailer has a physical presence in the state or meets certain sales thresholds. The retailer collects and sends the tax to Massachusetts, so you typically see it added at checkout.

What is exempt from the 6.25% tax

Massachusetts does not charge sales tax on groceries — unprepared food you buy to cook at home. This includes produce, meat, dairy, bread, and canned goods. The distinction is whether the food is ready to eat (taxed) or requires preparation (not taxed).

Prescription medications and certain medical devices are also exempt. Over-the-counter medicines like pain relievers and cold medicine are taxed, but prescription drugs are not. Medical equipment such as wheelchairs, canes, and diabetic testing supplies are exempt as well.

Newspapers and magazines are not subject to sales tax in Massachusetts. Clothing and footwear under $175 per item are also exempt — items priced at $175 or more are taxed on the full amount.

Local option tax on meals, hotels, and car rentals

Certain Massachusetts towns have voted to add a 0.75% local sales tax on top of the state rate. This local tax applies only to three categories: restaurant meals and prepared food, hotel and motel rooms, and car rentals. It does not apply to groceries, retail goods, or other services.

Towns that have adopted the local option include Boston, Cambridge, Somerville, Worcester, and others, but not all municipalities have chosen to do so. The total rate in these towns is 7% for meals, hotels, and rentals. In towns without the local option, you pay only the 6.25% state rate.

You can check your receipt to see the rate charged, or contact your town's assessor's office to confirm whether the local option is in effect where you live.

How sales tax is calculated at checkout

Sales tax is calculated on the subtotal of your purchase before any discounts or coupons are applied. If you have a coupon that reduces the price, the tax is calculated on the reduced amount. If you have a percentage-off coupon, the tax is calculated after the discount is taken.

When you buy multiple items, each item is taxed individually according to its category. A shirt and a pair of shoes are both taxed at the applicable rate for clothing. A grocery item and a prepared sandwich are taxed differently — the grocery item is not taxed, and the sandwich is taxed at 6.25% (or 7% if you are in a local option town).

Sales tax on online purchases

Online retailers are required to collect and remit Massachusetts sales tax if they have a warehouse, office, or other physical location in the state, or if they meet certain sales volume thresholds set by federal law. Most large retailers — Amazon, Walmart, Target, and similar companies — collect Massachusetts sales tax at checkout.

Smaller online retailers may not collect the tax. If you buy from an out-of-state retailer that does not collect Massachusetts tax, you are technically responsible for reporting and paying the tax yourself on your state income tax return. In practice, most people do not do this, but the obligation exists.

Frequently Asked Questions

Do I pay sales tax on clothing in Massachusetts?

Yes, unless the item costs less than $175. Clothing and footwear under $175 per item are exempt. Items priced at $175 or more are taxed on the full purchase price. Accessories like belts, hats, and scarves are taxed regardless of price.

Is restaurant food taxed differently than grocery food?

Yes. Prepared food you buy ready to eat — from a restaurant, deli, or food truck — is taxed at 6.25% (or 7% in local option towns). Unprepared groceries you buy to cook at home are not taxed at all.

What towns in Massachusetts have the 7% local option tax?

Towns that have adopted the 0.75% local option include Boston, Cambridge, Somerville, Worcester, Brookline, and others, but the list changes as towns vote to adopt or repeal it. Check your receipt or contact your town assessor to confirm the rate where you live.

Do I owe sales tax on items I buy from out-of-state websites?

Large online retailers collect Massachusetts sales tax automatically. Smaller retailers may not. If tax is not collected, you are technically responsible for reporting it on your state tax return, though enforcement is rare for individual purchases.

Are prescription drugs taxed in Massachusetts?

No. Prescription medications are exempt from sales tax. Over-the-counter medicines like aspirin and cough syrup are taxed at 6.25%.