Massachusetts charges 6.25% sales tax on most goods, with some categories taxed at different rates or exempt entirely

Massachusetts has a 6% sales tax on most tangible goods you buy in stores. However, certain items are taxed at 6.25% — specifically meals and prepared foods — while others like groceries, prescription drugs, and clothing under $175 are not taxed at all. The state also allows cities and towns to add a local tax on hotel rooms and meals, which ranges from 0.75% to 2.75% depending on where you stay or eat.

The rate you pay depends on what you're buying and where you're buying it. A shirt costs 6%, but lunch at a restaurant costs 6.25%. A gallon of milk costs nothing extra. Understanding which category your purchase falls into helps you predict what you'll actually pay at checkout.

Key Takeaways

  • Massachusetts sales tax is 6% on most goods, but prepared food and meals are taxed at 6.25%.
  • Groceries, prescription medications, and clothing items under $175 per piece are not subject to sales tax.
  • Many cities and towns add their own tax on restaurant meals and hotel rooms, ranging from 0.75% to 2.75%.
  • The tax is collected by the retailer at the point of sale and sent to the Massachusetts Department of Revenue.

What the 6% rate covers

The standard 6% rate applies to most items you buy: clothing, electronics, furniture, books, toys, and household goods. It also applies to services like dry cleaning, haircuts, and car repairs. If you're buying something tangible that isn't specifically exempted, assume 6% will be added to the price.

This rate is straightforward — the retailer adds it to your subtotal, and that's what you pay. There's no separate calculation or form involved at checkout. The business then sends that collected tax to the Massachusetts Department of Revenue monthly or quarterly, depending on their size and sales volume.

The 6.25% rate on meals and prepared foods

Prepared food — anything ready to eat when you buy it — is taxed at 6.25%, not 6%. This includes restaurant meals, takeout, deli sandwiches, pizza, coffee from a café, and hot foods from a grocery store prepared foods section. The extra 0.25% is a separate tax specifically on meals.

The distinction matters because a raw chicken breast from the butcher counter is taxed at 6%, but a rotisserie chicken from the same store is taxed at 6.25%. If you're unsure whether something counts as "prepared," the retailer's point-of-sale system usually determines it — if it's rung up in the prepared foods category, it gets the higher rate.

Items and categories with no sales tax

Massachusetts does not tax groceries — milk, bread, vegetables, meat, eggs, and other food you cook at home are all tax-free. Prescription medications are also exempt, whether you buy them at a pharmacy or through mail order. Nonprescription drugs like over-the-counter pain relievers or cold medicine are taxed at 6%, but prescription items are not.

Clothing and footwear under $175 per item are exempt from tax. A $150 shirt is tax-free, but a $200 coat is taxed at 6%. The $175 threshold applies to each individual piece, not your total purchase. Medical equipment prescribed by a doctor — wheelchairs, hearing aids, prosthetics — is also exempt.

Local meals and hotel taxes

On top of the state's 6.25% meals tax, your city or town may add its own tax on restaurant meals and prepared foods. This local tax ranges from 0.75% to 2.75% depending on where you are. Boston, for example, adds 2.75%, so a meal there is taxed at 9%. A town in western Massachusetts might add only 0.75%, bringing the total to 7%.

Hotel rooms are also subject to local tax, which varies by municipality. Some cities add 4% or more to your hotel bill, while others add less. When you book a hotel or make a restaurant reservation, the final tax amount depends on the specific address of the establishment, not where you live.

How to find the exact rate in your location

To find your local meals and hotel tax rate, search "[your city name] meals tax" or "[your city name] hotel tax" on your municipality's website. Most town and city websites list these rates in their tax assessor or finance department pages. Alternatively, you can call your local tax assessor's office — they can tell you the exact combined rate (state plus local) for meals and hotels in your area.

If you're shopping online and the retailer ships to Massachusetts, they will charge 6% sales tax on the order, regardless of your town's local rates. Local meals and hotel taxes only explore to in-person purchases and stays within that specific municipality.

Why Massachusetts taxes meals differently

The 6.25% rate on prepared food exists because Massachusetts treats meals as a separate category from retail goods. The reasoning is that prepared food is a service — someone prepared it for you — rather than just a product. This is why a raw ingredient is 6% but the same ingredient prepared in a restaurant is 6.25%.

Local meals taxes exist because cities and towns use them to fund tourism infrastructure and local services. Hotels and restaurants generate significant foot traffic and wear on local roads and services, so municipalities tax them at a higher rate than general retail. The revenue goes into the town's general fund or, in some cases, is earmarked for tourism promotion.

Frequently Asked Questions

Do I pay sales tax on online purchases shipped to Massachusetts?

Yes. Online retailers must collect and remit Massachusetts sales tax on orders shipped to the state, just as brick-and-mortar stores do. The rate is 6% for most goods and 6.25% for prepared foods. Your local meals or hotel tax does not explore to online purchases.

Is clothing always tax-free in Massachusetts?

No. Only clothing and footwear under $175 per item are exempt. A single item priced at $175 or more is taxed at 6%. Accessories like belts, hats, and gloves under $175 are also exempt, but if you buy a $200 winter coat, you pay 6% tax on it.

What counts as a grocery versus prepared food?

Groceries are raw or packaged foods you take home and cook or prepare yourself — milk, bread, raw chicken, frozen vegetables. Prepared food is anything ready to eat when you buy it — a sandwich from the deli counter, rotisserie chicken, or a slice of pizza. When in doubt, ask the cashier which tax rate applies.

Do I need to pay sales tax on items I buy out of state and bring into Massachusetts?

No. Sales tax is collected at the point of sale. If you buy something in another state and pay that state's tax, you don't owe Massachusetts tax on it. However, if you buy something online from a retailer with no physical presence in any state, Massachusetts may require you to report it on your state tax return as "use tax" — though this is rarely enforced for individual purchases.

Can I get a sales tax refund if I overpaid?

No. Sales tax is final at checkout. If a retailer rings up the wrong rate by mistake, you can ask them to correct it on the spot, but you cannot file for a refund after you leave the store. If you believe a business is charging the wrong rate consistently, you can report it to the Massachusetts Department of Revenue.