What Massachusetts Sales Tax Is
Massachusetts sales tax is a 6.25% tax added to most purchases of goods and some services. The state collects it at the point of sale — when you buy something, the tax gets added to your total. Massachusetts also allows cities and towns to add a local meals tax of up to 0.75% on restaurant food, so your actual rate at a restaurant can be higher than 6.25%.
The tax goes to the state's general fund and, in the case of local meals taxes, to individual municipalities. Unlike income tax, which is based on what you earn over a year, sales tax is immediate — you pay it every time you make a taxable purchase.
Key Takeaways
- Massachusetts charges 6.25% sales tax on most goods and certain services, plus cities and towns may add up to 0.75% meals tax on restaurant food.
- Groceries, prescription medications, and most medical equipment are exempt from sales tax in Massachusetts.
- Services like haircuts, repairs, and professional fees are generally not taxed, but labor bundled with goods (like installation) often is.
- You pay sales tax at checkout; the seller collects it and sends it to the state, so you do not file a separate form as a consumer.
What Is and Is Not Taxed
Most physical goods are taxed at 6.25%, including clothing, electronics, furniture, and household items. However, groceries for home consumption are exempt — this includes bread, milk, vegetables, and packaged foods you buy to cook or eat at home. Hot prepared food, even if you buy it at a grocery store deli, is taxed.
Prescription medications and certain medical equipment are also exempt. This includes insulin, inhalers, wheelchairs, and hearing aids. Over-the-counter medications like aspirin or cold medicine are taxed as regular goods.
Services are usually not taxed in Massachusetts. A haircut, car repair, dental cleaning, or plumbing visit is not subject to sales tax. However, when a service includes a physical product — such as a plumber installing a new pipe or a salon selling you shampoo — the product portion may be taxed while the labor is not. The way the invoice is written matters; if the seller bundles labor and materials into one price, the entire amount is often taxed.
How the Tax Rate Works Across Massachusetts
The base state sales tax is 6.25% everywhere in Massachusetts. On top of this, many cities and towns have added a local meals tax of 0.75%, making the total tax on restaurant meals 7% in those areas. Not all municipalities have adopted this local tax, so the meals tax rate varies by location.
When you buy something in a store, you pay the rate where the store is located, not where you live. If you live in a town without a meals tax but eat at a restaurant in a town that has one, you pay the higher rate. Online purchases are more complex — Massachusetts requires out-of-state sellers to collect and remit sales tax if they have a physical presence in the state or meet certain sales thresholds, but the rules vary by seller and change periodically.
What Happens When You Buy Something
When you make a purchase, the seller calculates the tax based on the item's price and the location's tax rate, then adds it to your bill. You pay the total at checkout. The seller is responsible for collecting the tax and sending it to the Massachusetts Department of Revenue on a regular schedule — usually monthly or quarterly, depending on the business size.
As a consumer, you do not file any forms or take any action related to sales tax. The seller handles the entire process. Your receipt will show the tax amount separately so you can see what was charged. If you believe you were charged incorrectly, you can contact the seller or the Department of Revenue, but this is rare for standard purchases.
Sales Tax on Specific Purchases
Clothing and shoes are taxed at the standard 6.25% rate with no exemptions. Diapers and feminine hygiene products are also taxed. Motor vehicles are taxed, though the rate and rules are complex and tied to registration and title fees as well.
Digital goods and services — such as e-books, streaming subscriptions, and software downloads — are generally taxed in Massachusetts, though the rules are still evolving as technology changes. Gasoline is taxed, but the tax is built into the per-gallon price you see at the pump rather than added at checkout.
Alcohol and tobacco have their own excise taxes in addition to sales tax. These are separate from the 6.25% sales tax and are typically included in the shelf price or added separately depending on the product and retailer.
Who Collects and Where the Money Goes
The Massachusetts Department of Revenue collects sales tax from businesses and deposits it into the state's general fund. Local meals taxes collected by municipalities go directly to those cities and towns. Businesses are required to register with the state, collect the correct tax, and file returns showing what they collected and what they owe.
If a business fails to collect or remit sales tax, the Department of Revenue can audit them, assess penalties, and pursue collection. As a consumer, you are not responsible for ensuring the seller collects the tax correctly — that is the seller's legal obligation.
Frequently Asked Questions
Do I pay sales tax on groceries?
No. Groceries for home consumption — bread, milk, produce, packaged foods — are exempt from sales tax. Hot prepared food, including deli items, restaurant meals, and food from a food truck, is taxed at the full rate plus any local meals tax.
Is clothing taxed in Massachusetts?
Yes. Clothing and shoes are taxed at 6.25% with no exemptions or special rates. This applies to all clothing regardless of price or type.
What is the meals tax and where does it apply?
The meals tax is a local option tax of up to 0.75% that cities and towns can add to restaurant meals and prepared food. Not all municipalities have adopted it. You can check your town's website or ask at a restaurant to learn about a meals tax applies in that location.
Do I pay sales tax on online purchases?
It depends on the seller. Massachusetts requires out-of-state sellers to collect sales tax if they have a physical presence in the state or meet certain sales thresholds. Many large online retailers now collect Massachusetts sales tax, but smaller sellers may not. If tax was not collected, you may owe it when you file your state income tax return, though this is rarely enforced for individual consumers.
Are prescription medications taxed?
No. Prescription medications are exempt from sales tax. Over-the-counter medications like aspirin, cold medicine, and pain relievers are taxed as regular goods at 6.25%.