Massachusetts has a 6.25% sales tax on most goods, but not on groceries or clothing under $175

Massachusetts sales tax is a 6.25% tax added to the price of most items you buy in the state. The tax is collected by the seller at the register and sent to the state Department of Revenue. Unlike income tax, which comes out of your paycheck, sales tax is a tax on purchases — you pay it when you hand over money for something.

The key thing to know is that not everything is taxed the same way. Groceries, prescription medications, and clothing items under $175 are exempt — meaning no sales tax is added. Restaurant meals, prepared foods, and clothing over $175 are taxed. This creates real differences in what you actually pay depending on what you're buying and where.

Key Takeaways

  • Massachusetts sales tax is 6.25% on most taxable items, added at checkout and collected by the seller.
  • Groceries, prescription drugs, and clothing under $175 per item are not taxed in Massachusetts.
  • Restaurant meals, prepared foods, and clothing priced at $175 or more are subject to the full 6.25% tax.
  • Some cities and towns in Massachusetts add a local meals tax on top of the state rate, ranging from 0.75% to 1.5%.

What is and isn't taxed in Massachusetts

The grocery exemption covers food you take home and cook yourself — milk, bread, vegetables, meat, eggs, and cereal are all tax-free. But if you buy a rotisserie chicken from the supermarket deli, or a sandwich from the prepared foods section, that's taxed. The line is whether the store prepared it or you will prepare it at home.

Clothing has a specific threshold: items under $175 per piece are exempt. A $150 shirt is tax-free. A $200 winter coat is taxed. If you buy five $30 shirts, none of them are taxed because each one is under the limit. Shoes, hats, and accessories follow the same rule — it's the price of each individual item that matters.

Prescription medications are never taxed. Over-the-counter medicines like aspirin or cold medicine are taxed. Medical equipment like wheelchairs or crutches is taxed. Vitamins and supplements are taxed because they're not prescribed by a doctor.

Services are generally not taxed — haircuts, car repairs, and plumbing work have no sales tax. But if you buy a product (like a bottle of shampoo at a salon), that product is taxed.

Local meals taxes on top of the state rate

Many Massachusetts cities and towns add their own tax on restaurant meals and alcohol. This is separate from the 6.25% state sales tax. Some towns add 0.75%, others add 1%, and a few add as much as 1.5%. This means your total tax on a restaurant meal can be anywhere from 6.25% to 7.75% depending on where you eat.

The local meals tax applies to food and drink served at restaurants, bars, and takeout places. It does not apply to groceries you buy at a supermarket. If you live in or visit a town with a meals tax, you'll see it on your receipt as a separate line item. The town uses this money for local services like schools or roads.

You can learn about your town has a meals tax by calling your local assessor's office or checking your town's website. The tax rate is usually posted in restaurants as well, either on the menu or at the register.

How sales tax appears on your receipt

When you check out, the cashier or register shows you the subtotal (the price before tax), then adds the sales tax, then shows you the total you owe. On a receipt, you'll see a line that says "Tax" or "Sales Tax" with the dollar amount. If you're in a town with a meals tax and you're buying food, you may see two separate tax lines — one for state sales tax and one for the local meals tax.

The seller is responsible for collecting the tax and sending it to the state. You don't have to do anything — the tax is already included in the total price you pay. If you're buying something tax-exempt (like groceries), the register should show zero tax on that line.

Why some items are exempt and others aren't

Massachusetts exempts groceries and prescription medications because they're considered necessities — things people need to survive and stay healthy. The state decided not to tax these items so that lower-income households don't pay a higher percentage of their income in taxes.

Clothing under $175 is exempt for a similar reason: basic clothing is a necessity. The $175 threshold is meant to separate everyday clothes from luxury items. A pair of work pants is exempt; a designer coat is taxed.

Restaurant meals and prepared foods are taxed because they're considered a service or a luxury — you're paying for someone else to prepare and serve the food. The same applies to alcohol, which is taxed at the full rate.

What happens if you buy something online from out of state

If you order something online from a retailer outside Massachusetts, you may not see Massachusetts sales tax added at checkout. However, Massachusetts law requires you to pay use tax on items you bring into the state or have shipped to you. Use tax is the same rate as sales tax — 6.25% — and it's meant to prevent people from avoiding tax by shopping out of state.

In practice, most people don't pay use tax on individual purchases. It's an honor system for small orders. Large retailers like Amazon now collect Massachusetts sales tax automatically on most items, so the question comes up less often than it used to. If you're unsure whether you owe use tax on a specific purchase, you can contact the Massachusetts Department of Revenue.

Frequently Asked Questions

Is clothing always tax-free in Massachusetts?

No. Clothing items priced at $175 or more per piece are taxed at 6.25%. Items under $175 are tax-free. The price of each individual item is what matters — if you buy a $100 shirt and a $200 jacket, only the jacket is taxed.

Are groceries completely tax-free?

Most groceries are tax-free, but prepared foods are taxed. A rotisserie chicken from the deli counter, a sandwich, or a bakery cake are all taxed because the store prepared them. Raw ingredients you cook yourself are not taxed.

Do I pay sales tax on restaurant meals?

Yes. Restaurant meals are taxed at 6.25% statewide, plus any local meals tax your town has added (usually 0.75% to 1.5%). Takeout and delivery orders are taxed the same way as eating in the restaurant.

What's the difference between sales tax and use tax?

Sales tax is collected when you buy something in Massachusetts. Use tax is owed on items you buy outside the state and bring in, or have shipped to you. Both are 6.25%. Most online retailers now collect the tax automatically, so you won't see a separate use tax charge.