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

Massachusetts sales tax is a 6.25% tax added to the price of most items you buy in the state. The tax applies at the point of sale — when you pay, the store adds it to your total. You pay this tax on clothing, electronics, furniture, and most other goods. However, Massachusetts has carved out significant categories that are not taxed: groceries, prescription medications, and medical devices are all exempt. This means your grocery bill stays the same, but your clothing purchase will cost 6.25% more than the sticker price.

The state collects this tax and distributes it to cities and towns. Unlike some states, Massachusetts does not allow cities or counties to add their own local sales tax on top of the state rate. The 6.25% is the only sales tax you will encounter, regardless of where in Massachusetts you shop.

Key Takeaways

  • Massachusetts sales tax is 6.25% statewide with no local additions, so the rate is the same in Boston and rural areas.
  • Groceries, prescription drugs, and medical equipment are not taxed, but prepared food, candy, and soft drinks are.
  • Clothing under $175 per item is tax-exempt, but a single shirt costing $175 or more is taxed at 6.25%.
  • Online purchases from out-of-state sellers may or may not be taxed depending on whether the seller has a Massachusetts presence.
  • The tax applies to services like haircuts, repairs, and dry cleaning, not just physical goods.

What is and is not taxed in Massachusetts

The exemptions in Massachusetts are specific and sometimes counterintuitive. Groceries — items you buy at a supermarket to cook at home — are never taxed. This includes bread, milk, vegetables, meat, and frozen foods. But the moment that food is prepared or ready to eat, tax applies. A rotisserie chicken from the grocery store deli counter is taxed. A sandwich from a restaurant is taxed. Candy and soft drinks are taxed even in a grocery store because they are not considered food staples.

Clothing has a price threshold. Individual clothing items under $175 are tax-exempt. A $100 pair of jeans is not taxed. A $200 coat is taxed on the full amount. Accessories like hats, gloves, and belts follow the same rule. Shoes under $175 are exempt; shoes over $175 are taxed. This threshold applies per item, not per purchase, so you could buy ten $100 shirts and pay no tax on any of them.

Medical items are broadly exempt. Prescription medications are never taxed. Over-the-counter medications like aspirin and cold medicine are taxed, but medical devices — wheelchairs, canes, hearing aids, diabetic testing supplies — are not. Eyeglasses and contact lenses are taxed, but the lenses themselves (if purchased separately for medical correction) may not be.

Services are taxed in Massachusetts. A haircut, a car repair, dry cleaning, and a plumbing visit all have sales tax added. The tax applies to the labor and materials together. A few services are exempt: medical services performed by a doctor or dentist, and certain educational services, are not taxed.

How the 6.25% rate is calculated and applied

When you buy a taxable item, the store calculates 6.25% of the price and adds it to your bill. If you buy a $100 item, the tax is $6.25, and you pay $106.25 total. The store collects this tax from you and sends it to the Massachusetts Department of Revenue on a regular schedule — usually monthly or quarterly depending on the store's size and sales volume.

The tax is calculated on the selling price before any discounts or coupons are applied. If an item is on sale for 20% off, the tax is calculated on the sale price, not the original price. Manufacturer coupons and store coupons reduce the taxable amount. A $100 item with a $10 coupon is taxed on $90, so you pay $90 plus $5.63 in tax.

Some purchases involve multiple items at different tax rates. If you buy a shirt (not taxed), a book (not taxed), and a phone charger (taxed), the store rings each item separately and applies tax only to the charger. The receipt will show which items were taxed and which were not.

Online purchases and out-of-state sellers

Massachusetts sales tax on online purchases depends on whether the seller has a physical or economic presence in the state. Large online retailers like Amazon, Walmart, and Target have Massachusetts operations, so they collect and remit Massachusetts sales tax on orders shipped to Massachusetts residents. You pay the same 6.25% whether you shop in a store or online from these sellers.

Smaller out-of-state sellers may not collect Massachusetts sales tax at checkout. In those cases, Massachusetts law requires the buyer to pay "use tax" — a tax on items purchased outside the state for use inside it. Use tax is 6.25% and is meant to level the playing field between local and remote sellers. In practice, most individual buyers do not pay use tax unless they are audited, but businesses are expected to track and report it.

If you are unsure whether tax was collected on an online purchase, check your receipt or order confirmation. The tax line will show if it was applied. If you bought from a small seller and no tax was charged, you are technically responsible for reporting it on your state tax return, though enforcement is rare for individual purchases.

Who collects and where the money goes

Retailers collect sales tax at the point of sale and hold it temporarily. They then remit it to the Massachusetts Department of Revenue according to a schedule based on their sales volume. Large retailers remit monthly; smaller businesses may remit quarterly. The state publishes a calendar of due dates each year.

Once collected, the revenue goes into the state's General Fund, which finances schools, roads, public safety, and other state services. Cities and towns do not receive a direct share of sales tax revenue — they rely on property taxes and state aid instead. This is different from some other states where local governments get a portion of sales tax collected within their borders.

Retailers are required to keep records of all sales and taxes collected for at least three years in case of an audit. The Department of Revenue can inspect these records and verify that the correct amount of tax was collected and remitted.

Special situations and exceptions

Certain organizations are exempt from paying sales tax on their purchases. Nonprofits, schools, and government agencies can provide a tax exemption certificate to retailers and avoid paying tax on items they buy for their operations. A nonprofit thrift store, for example, would not pay sales tax when purchasing inventory from wholesalers, but customers shopping at the thrift store would still pay tax on their purchases.

Resellers — people who buy items to resell them — can avoid paying sales tax on their inventory purchases by providing a resale certificate. A clothing boutique owner buys shirts wholesale without paying tax, then collects tax from customers who buy those shirts. This prevents tax from being charged twice on the same item.

Some items are taxed differently depending on how they are used. A vehicle is taxed when you register it with the Registry of Motor Vehicles, not when you buy it from a dealer. The tax is based on the vehicle's value and is paid as part of registration, not at the point of sale.

Frequently Asked Questions

Do I pay sales tax on groceries in Massachusetts?

No. Groceries — food you buy to cook at home — are not taxed in Massachusetts. This includes produce, meat, dairy, bread, and frozen foods. However, prepared foods like rotisserie chicken, deli sandwiches, and restaurant meals are taxed. Candy and soft drinks are also taxed even in a grocery store.

Is clothing always tax-free in Massachusetts?

Clothing items under $175 are tax-free. A single item costing $175 or more is taxed on the full amount. This applies per item, so a $100 shirt and a $200 coat would have tax only on the coat. Accessories like hats and belts follow the same rule.

Do I have to pay sales tax on services like haircuts?

Yes. Most services in Massachusetts are taxed at 6.25%, including haircuts, repairs, dry cleaning, and plumbing. Medical services performed by a licensed doctor or dentist are exempt, but services at a salon or repair shop are taxed.

What happens if I buy something online from an out-of-state seller?

Large sellers like Amazon and Walmart collect Massachusetts sales tax automatically. Smaller out-of-state sellers may not. If tax was not collected, you are technically responsible for paying use tax (6.25%) on your state tax return, though this is rarely enforced for individual purchases.

Can I get a refund of sales tax I already paid?

No. Sales tax is final once paid. You cannot get a refund if you return an item, but you also do not pay tax on the return. If you return a $100 taxable item you paid $106.25 for, you receive $106.25 back (or credit), not $100.