Massachusetts has a 6.25% statewide sales tax, with no local add-ons

Massachusetts charges a flat 6.25% sales tax on most retail purchases. Unlike many states, Massachusetts does not allow cities or towns to add their own local sales tax on top of the state rate. The 6.25% applies the same way whether you buy something in Boston, Worcester, or Springfield.

This rate has been in place since 1966 and does not change based on where in the state you make your purchase. If you see a price tag and want to know the final cost, multiply the listed price by 0.0625 and add that to the original amount.

Key Takeaways

  • Massachusetts sales tax is 6.25% statewide with no additional local taxes added at checkout.
  • Groceries, prescription medications, and most clothing under $175 per item are exempt from sales tax.
  • Restaurant meals, prepared foods, and takeout are taxed at the full 6.25% rate.
  • The tax applies to both in-person purchases and online orders shipped to a Massachusetts address.

What is and is not taxed in Massachusetts

Not everything you buy in Massachusetts is subject to the 6.25% tax. The state exempts certain categories of goods, mostly items considered necessities. Unprepared groceries — bread, milk, vegetables, meat, eggs — are not taxed. Prescription medications are also exempt. Non-prescription drugs and over-the-counter medicines are taxed.

Clothing and footwear under $175 per item are exempt from tax. A shirt that costs $100 is not taxed; a coat that costs $200 is taxed on the full amount. The exemption applies to the individual item price, not your total purchase. If you buy five $30 shirts, none are taxed. If you buy one $200 jacket, the entire $200 is taxed.

Prepared and ready-to-eat foods are taxed. This includes restaurant meals, takeout, deli counter items, and hot foods from a grocery store. A sandwich from a deli counter is taxed. A loaf of bread from the shelf is not. Coffee from a café is taxed; a bag of coffee beans is not.

How sales tax works on online and mail orders

If you order something online and have it shipped to a Massachusetts address, you owe Massachusetts sales tax on that purchase. This applies whether you order from a Massachusetts company or an out-of-state retailer. The retailer is responsible for collecting and sending the tax to the state.

Some online retailers may not collect Massachusetts tax at checkout, but you are still legally responsible for the tax owed. In practice, most major retailers now collect sales tax on orders shipped to Massachusetts. If you are unsure whether tax was included in your order total, check your receipt or contact the retailer.

Sales tax on services

Most services in Massachusetts are not subject to sales tax. Haircuts, car repairs, plumbing, electrical work, and medical services do not have sales tax added. However, if you buy a physical product as part of a service — such as parts installed during a repair — the parts themselves may be taxed depending on what they are.

Certain services do have tax applied. Telecommunications services (phone, internet, cable) are taxed at 6.25%. Parking fees and storage fees are also taxed. If you are unsure whether a particular service is taxed, ask the business before you pay, or check your receipt afterward to see if tax was added.

Who collects and where the money goes

Retailers and businesses collect sales tax at the point of sale and send it to the Massachusetts Department of Revenue. The state uses this revenue to fund schools, infrastructure, and other state services. Businesses are required to register with the state and file sales tax returns, usually monthly or quarterly depending on the volume of sales.

If you own a business in Massachusetts, you need a sales tax permit from the Department of Revenue before you can legally collect tax from customers. The state publishes a guide for businesses on how to register, collect, and report sales tax.

Sales tax on vehicles and fuel

Motor vehicles are subject to sales tax in Massachusetts. When you buy a car, truck, or motorcycle, the 6.25% tax applies to the purchase price. This tax is usually collected when you register the vehicle with the Registry of Motor Vehicles, not at the dealership.

Gasoline and diesel fuel are not subject to the 6.25% sales tax. However, Massachusetts charges a separate fuel excise tax of 24 cents per gallon of gasoline and 26 cents per gallon of diesel, which is added at the pump. This excise tax is different from sales tax and funds road maintenance and transportation.

Frequently Asked Questions

Do I have to pay sales tax if I buy something out of state and bring it home?

No. If you purchase an item in another state and physically bring it back to Massachusetts, you do not owe Massachusetts sales tax on that purchase. You already paid tax in the state where you bought it. However, if you order something online and have it shipped to Massachusetts, you owe Massachusetts tax.

Are there any other taxes I should know about besides sales tax?

Yes. Massachusetts has a state income tax (5.05% on most income), property tax on real estate, and excise taxes on vehicles and fuel. Some cities and towns also charge local property tax rates that vary. Sales tax is just one of several taxes that may apply to your purchases or income.

What if a business charges me sales tax on something that should be exempt?

Ask the business to correct the charge. If they refuse, you can file a complaint with the Massachusetts Department of Revenue. Keep your receipt as proof. The Department of Revenue can investigate and require the business to refund you if the tax was incorrectly applied.

Does the $175 clothing exemption apply to accessories like hats and belts?

Yes. Hats, belts, scarves, gloves, and other clothing accessories under $175 are exempt from sales tax. The exemption covers anything worn on the body to keep warm or protect from weather, as well as everyday clothing. Designer handbags and jewelry are not considered clothing and are taxed regardless of price.