Massachusetts charges a 6.25% sales tax on most goods, with some categories taxed at different rates or not taxed at all

Massachusetts sales tax applies to the sale of tangible personal property — physical items you can touch and take home. The standard rate is 6.25% of the purchase price. However, Massachusetts treats certain categories differently: clothing and footwear under $175 per item are exempt, groceries are exempt, and meals at restaurants are taxed at 6.25%. Some services are taxable (like dry cleaning or repairs), while others are not (like haircuts or legal information). The tax is collected by the seller at the point of sale and sent to the Massachusetts Department of Revenue.

If you are buying something in Massachusetts, the tax is already included in the final price shown at checkout — you do not calculate it separately. If you are selling goods or services in Massachusetts, you need to understand when you must collect tax and when you do not.

Key Takeaways

  • The standard Massachusetts sales tax rate is 6.25% on tangible goods, but clothing and footwear under $175 per item are not taxed.
  • Groceries and unprepared food are exempt from sales tax, but prepared food and restaurant meals are taxed at the full 6.25% rate.
  • Services like haircuts, legal information, and medical care are generally not subject to sales tax, but services like dry cleaning and vehicle repairs are taxed.
  • If you operate a business in Massachusetts, you must register for a sales tax account and collect tax on taxable sales, then file returns with the Department of Revenue.

What is and is not taxed in Massachusetts

The exemptions in Massachusetts sales tax are narrow and specific. Clothing and footwear are exempt only if each item costs less than $175 — a coat priced at $180 is taxed, but one priced at $174 is not. This threshold applies per item, not per purchase. Accessories like hats, gloves, and belts are taxed even if they cost under $175, because they are not classified as clothing or footwear.

Food and beverages follow a clear rule: unprepared food you cook at home is exempt, but prepared food is taxed. A rotisserie chicken from the grocery store deli counter is taxed. A raw chicken from the butcher is not. Soda, candy, and dietary supplements are taxed. Milk, bread, and vegetables are not. Restaurant meals, takeout, and food from food trucks are all taxed at 6.25%.

Services are taxed only if they are listed in the Massachusetts tax code as taxable services. Taxable services include dry cleaning, laundry, vehicle repairs, appliance repairs, and shoe repair. Non-taxable services include haircuts, medical and dental care, legal services, and accounting services. If you are unsure whether a service is taxed, the seller should tell you before you pay.

How the tax rate works across different purchases

Massachusetts has one sales tax rate — 6.25% — that applies uniformly across the state. There are no local sales taxes added on top of the state rate, and no variation by county or city. This makes Massachusetts different from states that allow municipalities to add their own sales tax.

The 6.25% rate applies to the full purchase price of taxable items. If you buy a $100 item subject to sales tax, the tax is $6.25. If you buy multiple items, each taxable item is taxed individually at 6.25%. There is no bulk discount or threshold that changes the rate.

Who collects the tax and where it goes

The seller — the store, restaurant, or service provider — is responsible for collecting sales tax from the customer. The seller then sends the collected tax to the Massachusetts Department of Revenue on a regular schedule. Most sellers file monthly, though some file quarterly or annually depending on their sales volume.

The revenue collected goes into the state's general fund and is used to pay for state services. Businesses that collect sales tax must register with the Department of Revenue and obtain a sales tax account number before they begin selling. Failure to collect and remit sales tax can result in penalties and interest.

When you might owe sales tax as a buyer

As a buyer, you normally do not owe sales tax directly — the seller collects it. However, if you purchase items from outside Massachusetts and have them shipped to a Massachusetts address, you may owe sales tax on that purchase. This is called use tax, and it applies to items you buy from out-of-state sellers that would be taxable if purchased in Massachusetts.

Use tax is your responsibility to pay, not the seller's, if the seller did not collect Massachusetts sales tax. In practice, most online retailers now collect sales tax on purchases shipped to Massachusetts, so you rarely need to track this yourself. If you operate a business and purchase inventory or equipment, you may be able to claim a resale certificate to avoid paying sales tax on items you will resell.

Registering and collecting tax if you run a business

If you sell goods or services in Massachusetts, you must register for a sales tax account with the Massachusetts Department of Revenue before you make your first sale. You can register online through the state's website. You will need your Social Security Number or Federal Employer Identification Number, your business address, and information about what you plan to sell.

Once registered, you will receive a sales tax account number. You must collect tax on all taxable sales and file a return with the Department of Revenue. The filing frequency depends on your sales volume — most businesses file monthly, but low-volume sellers may file quarterly. You can file and pay online through the Department of Revenue's system.

Keep records of all sales and taxes collected. The Department of Revenue may audit your records to verify you are collecting and remitting the correct amount. If you fail to register, collect tax, or file returns, you can face penalties, interest, and potential legal action.

Frequently Asked Questions

Do I pay sales tax on clothes under $175?

No. Clothing and footwear are exempt from Massachusetts sales tax as long as each individual item costs less than $175. The threshold applies per item, so a $180 jacket is taxed but a $174 jacket is not. Accessories like belts, hats, and scarves are taxed regardless of price.

Is restaurant food taxed differently than grocery store food?

Yes. Prepared food — including restaurant meals, takeout, and deli items — is taxed at 6.25%. Unprepared groceries like raw vegetables, meat, and bread are not taxed. The distinction is whether the food is ready to eat when you buy it.

Do I owe Massachusetts sales tax on items I buy online from another state?

Most online retailers now collect Massachusetts sales tax on purchases shipped to Massachusetts addresses, so you do not need to track it. If a seller did not collect tax, you technically owe use tax on the purchase, but this is rarely enforced for individual buyers. Businesses should track these purchases more carefully.

What happens if I sell items without collecting sales tax?

You are required to register with the Massachusetts Department of Revenue and collect tax on all taxable sales. Failing to do so can result in back taxes, penalties, and interest. The Department of Revenue can audit your records and pursue collection if you do not comply.

Are services like haircuts or doctor visits taxed?

No. Personal services like haircuts, medical care, dental work, and legal information are not subject to Massachusetts sales tax. However, some services like dry cleaning, vehicle repairs, and appliance repairs are taxed at 6.25%.