Massachusetts charges a 6.25% sales tax on most retail purchases

Massachusetts has a single statewide sales tax rate of 6.25%. This tax applies to the sale of tangible goods — physical items you can touch and take home. The tax is calculated on the purchase price and added at checkout. You pay it when you buy clothing, groceries, electronics, furniture, or most other items in stores or online.

Some cities and towns do not add a local sales tax on top of the state rate, which means 6.25% is often the total tax you see. A few municipalities have local options taxes, but these are uncommon and typically apply only to specific categories like meals or lodging, not general retail goods.

Key Takeaways

  • Massachusetts sales tax is 6.25% on tangible goods, with no additional local sales tax in most areas.
  • Groceries, prescription medications, and medical equipment are exempt from sales tax.
  • Services like haircuts, repairs, and professional fees are not subject to sales tax in Massachusetts.
  • Online purchases from out-of-state sellers may not have Massachusetts sales tax added at checkout, but you may owe use tax when you file your state tax return.
  • Restaurant meals and prepared foods are taxed at the full 6.25% rate.

What is and is not taxed in Massachusetts

Not everything you buy is subject to the 6.25% sales tax. Groceries — unprepared food you cook at home — are exempt. This includes bread, milk, vegetables, meat, and canned goods. Prepared foods and restaurant meals are taxed. If you buy a sandwich from a deli counter, you pay tax. If you buy a loaf of bread to make sandwiches at home, you do not.

Prescription medications and certain medical devices are also exempt. Over-the-counter medicines like aspirin or cold medicine are taxed, but prescription drugs are not. Durable medical equipment prescribed by a doctor — wheelchairs, oxygen equipment, diabetic supplies — is typically exempt as well.

Services are not taxed in Massachusetts. A haircut, car repair, plumbing work, or dental cleaning does not have sales tax added. The labor and expertise are not subject to the 6.25% rate. However, if you buy a product as part of that service — like a haircut and a bottle of shampoo — the shampoo is taxed but the haircut is not.

How sales tax is calculated and charged

The store calculates sales tax by multiplying your subtotal by 6.25%. If you buy an item for $100, the tax is $6.25, and your total is $106.25. The tax is added at the register or at checkout for online purchases. You do not calculate it yourself — the retailer handles this.

Rounding rules apply when the tax amount includes fractions of a cent. Most retailers round to the nearest cent. On a $9.99 purchase, the tax is $0.62 (rounded from $0.624), so your total is $10.61. The exact rounding method can vary slightly by retailer, but the difference is never more than a penny or two per transaction.

Online purchases and use tax

When you buy from an online retailer based outside Massachusetts, the seller may not add Massachusetts sales tax at checkout. This does not mean the purchase is tax-free. Massachusetts has a use tax that applies to goods you bring into the state or have shipped here, even if sales tax was not charged at purchase.

Use tax is 6.25% — the same rate as sales tax. You are responsible for paying it, usually when you file your Massachusetts state tax return. In practice, most individual shoppers do not report use tax on personal purchases, but the law requires it. Large purchases or business purchases are more likely to be tracked.

Many major online retailers now collect Massachusetts sales tax automatically, even if they are based outside the state. Amazon, for example, collects 6.25% on most purchases shipped to Massachusetts addresses. Check your receipt to see whether tax was included.

Tax-exempt purchases and who qualifies

Certain organizations and individuals can make tax-exempt purchases in Massachusetts. Nonprofits, schools, and government agencies can buy goods without paying sales tax if they provide a tax-exempt certificate to the retailer. These certificates must be obtained from the Massachusetts Department of Revenue and presented at the time of purchase.

Individuals do not generally receive a blanket tax exemption. However, if you are buying items for a tax-exempt organization you work for or volunteer with, that organization may provide you with a certificate to use for those specific purchases. You cannot use an organizational certificate for personal purchases.

Resellers — people who buy goods to resell them — can avoid sales tax on their inventory purchases by providing a resale certificate. This prevents tax from being charged twice: once when the reseller buys the goods and again when the customer buys them.

Special sales tax situations in Massachusetts

Massachusetts has a tax holiday in August for back-to-school purchases. For one week, typically the first week of August, clothing and footwear under $175 per item are sold without sales tax. School supplies like notebooks, pens, and backpacks under $175 are also exempt during this period. Items over $175 are still taxed. The exact dates change each year, so check the Massachusetts Department of Revenue website for the current year's holiday.

Energy and utilities — electricity, gas, and heating oil — are taxed at a lower rate of 5% rather than 6.25%. This reduced rate has been in place for many years and applies to residential and business use.

Motor vehicles are subject to sales tax when you purchase them, but the tax is typically handled through the Registry of Motor Vehicles when you register the vehicle, not at the dealership. The rate is 6.25% of the vehicle's purchase price.

Where the sales tax money goes

Sales tax revenue collected in Massachusetts goes to the state's general fund. The state uses this money to pay for schools, roads, public safety, and other government services. Unlike some states, Massachusetts does not allocate a portion of sales tax to local municipalities — the entire 6.25% goes to the state level.

This is one reason why Massachusetts has no local sales tax option. Cities and towns cannot add their own sales tax on top of the state rate. They rely on property taxes and state funding for their budgets instead.

Frequently Asked Questions

Do I pay sales tax on clothes in Massachusetts?

Yes, clothing is taxed at 6.25% in Massachusetts. The only exception is during the August back-to-school tax holiday, when clothing and footwear under $175 per item are exempt for one week. Items over $175 are taxed even during the holiday.

Is there sales tax on groceries?

Unprepared groceries — food you cook at home — are not taxed. This includes produce, meat, dairy, bread, and canned goods. Prepared foods like deli sandwiches, restaurant meals, and hot food from a grocery store counter are taxed at 6.25%.

What is the difference between sales tax and use tax?

Sales tax is charged by the retailer at the point of sale. Use tax is a tax you owe on purchases where sales tax was not charged, such as out-of-state online purchases. Both are 6.25% in Massachusetts. You report use tax on your state tax return.

Do I have to pay sales tax on services?

No. Services like haircuts, repairs, medical visits, and professional fees are not subject to sales tax in Massachusetts. If you buy a product as part of a service — like a haircut and a bottle of shampoo — only the product is taxed.

Can I get a sales tax refund if I leave Massachusetts?

Massachusetts does not have a sales tax refund program for visitors or people leaving the state. Once you pay sales tax on a purchase, it is not refunded. Some states offer refunds to tourists, but Massachusetts does not.