Massachusetts charges 6.25% sales tax on most retail purchases
Massachusetts has a single statewide sales tax rate of 6.25%. This rate applies to tangible goods — items you can touch and take home — when you buy them at a retail location or online. The tax is calculated on the sale price and collected by the seller at checkout. You do not pay sales tax on services in Massachusetts, with a few exceptions that are listed below.
The 6.25% rate has been in place since 1966 and does not vary by city or town. Unlike some states, Massachusetts does not allow local jurisdictions to add their own sales tax on top of the state rate. This means the tax you pay in Boston is the same as the tax you pay in Worcester or Springfield.
Sales tax is collected by the retailer and sent to the Massachusetts Department of Revenue. As a buyer, you see it added to your receipt at the point of sale. Online retailers are required to collect and remit Massachusetts sales tax if they have a physical presence in the state or meet certain sales thresholds.
Key Takeaways
- Massachusetts sales tax is 6.25% on tangible goods, with no local add-ons or variations by town.
- Groceries, prescription medications, and most clothing items under $175 are exempt from sales tax.
- Services such as haircuts, repairs, and professional consultations are not subject to sales tax.
- Prepared food and restaurant meals are taxed, but unprepared food from grocery stores is not.
- Online purchases are subject to Massachusetts sales tax if the seller meets state nexus requirements.
What is and is not taxed in Massachusetts
Food and groceries are the largest category of exempt items. Unprepared food that you cook at home — bread, milk, vegetables, meat, frozen dinners — is not taxed. However, prepared food is taxed. This includes restaurant meals, deli sandwiches made to order, hot pizza, and food from a grocery store hot bar. The rule is whether the food is ready to eat when you buy it.
Clothing and footwear under $175 per item are exempt. A pair of jeans for $120 is not taxed. A winter coat for $200 is taxed because it exceeds the threshold. The $175 limit applies to each individual item, not to your total purchase. Accessories like belts, hats, and scarves are taxed regardless of price.
Prescription medications are exempt. Over-the-counter drugs and vitamins are taxed. Medical devices such as hearing aids, wheelchairs, and diabetic supplies are exempt when prescribed by a doctor.
Services are not taxed. This includes haircuts, car repairs, plumbing, accounting, legal information, and home cleaning. However, if you buy a tangible product as part of a service — such as paint used in a painting job or parts used in a repair — the product portion may be taxed depending on how the invoice is structured.
Certain items are always taxed: gasoline, alcohol, tobacco, cosmetics, and household supplies like cleaning products and paper goods.
How sales tax is calculated on your receipt
The retailer multiplies the subtotal of taxable items by 0.0625 (which is 6.25%) and rounds to the nearest cent. If your taxable purchase is $100, the tax is $6.25. If your taxable purchase is $100.50, the tax is $6.28 (rounded from $6.28125).
When you buy a mix of taxable and exempt items, the tax applies only to the taxable portion. If you buy a $50 shirt and a $20 loaf of bread, tax is calculated only on the $50 shirt. The receipt should show which items are taxed and which are not, though not all retailers break this out clearly.
If an item is close to a tax threshold — like a $173 coat versus a $177 coat — the difference in tax can be significant. The $173 coat is exempt; the $177 coat costs $11.06 more after tax is added.
When you do not pay sales tax
Certain buyers are exempt from paying sales tax in specific situations. Nonprofit organizations registered with the state can purchase items for their operations without paying tax if they provide a resale certificate or nonprofit exemption certificate. Schools and government agencies also have exemption processes.
If you are buying items for resale — you are a retailer purchasing inventory — you do not pay sales tax at the wholesale level. You register for a resale certificate with the Department of Revenue and provide it to your supplier.
Items purchased for export outside Massachusetts are not taxed if the seller can verify the out-of-state destination. This is rare for individual consumers but applies to businesses shipping goods.
Sales tax on online and out-of-state purchases
Online retailers must collect Massachusetts sales tax if they have a warehouse, office, or other physical location in the state. They must also collect tax if their sales to Massachusetts residents exceed a certain threshold — currently $100,000 in a calendar year. This rule applies even if the retailer is based outside Massachusetts.
If an online retailer does not meet these requirements and does not collect tax at checkout, you may owe use tax on that purchase when you file your Massachusetts income tax return. Use tax is the same rate (6.25%) and applies to items you bought out of state or online but use in Massachusetts. Most individual consumers do not report use tax, but the obligation exists.
Marketplace platforms like Amazon and eBay collect sales tax on behalf of third-party sellers in most cases, though the rules vary by seller status and location.
Special sales tax situations
Motor vehicles are taxed at 6.25% on the sale price, but the tax is paid to the Registry of Motor Vehicles when you register the vehicle, not at the dealership. The tax is based on the actual sale price or the book value, whichever is higher.
Rental cars are taxed at 6.25%. Hotel rooms are not subject to sales tax but are subject to a separate room occupancy tax that varies by municipality (typically 5.7% statewide plus local additions).
Electricity and natural gas for residential use are not taxed. Telecommunications services (phone, internet) are taxed at 6.25%.
Lottery tickets and gambling are not subject to sales tax. Alcohol and tobacco are taxed at 6.25% plus excise taxes that vary by product type.
How to verify what is taxed on your receipt
Your receipt should itemize what was taxed and what was not. If you are unsure whether an item should have been taxed, the Massachusetts Department of Revenue publishes a sales tax guide organized by product category. You can also contact the Department of Revenue directly with questions about specific items.
If you believe you were charged tax incorrectly, contact the retailer first. Most will correct the error on a future visit or issue a refund. Keep your receipt as proof of the transaction.
For businesses that collect sales tax, the Department of Revenue requires monthly or quarterly filings depending on your sales volume. Retailers must keep records of all sales and exemptions claimed.
Frequently Asked Questions
Is clothing always exempt from sales tax in Massachusetts?
No. Clothing and footwear under $175 per item are exempt. Items priced at $175 or more are taxed. Accessories like belts, scarves, and hats are always taxed regardless of price. The $175 threshold applies to each individual item, not your total purchase.
Do I have to pay sales tax on groceries?
Unprepared groceries are not taxed. This includes raw meat, vegetables, bread, milk, and frozen dinners you cook at home. Prepared food — restaurant meals, deli sandwiches made to order, and hot food from a grocery store — is taxed at 6.25%.
What is the difference between sales tax and use tax?
Sales tax is collected by the retailer when you buy something. Use tax is a tax you owe on items you bought out of state or online without paying sales tax, when you bring them into Massachusetts. Both rates are 6.25%. Most individuals do not report use tax, but the obligation exists.
Do I pay sales tax on services like haircuts or car repairs?
No. Services are not subject to sales tax in Massachusetts. However, if the service includes a tangible product — such as paint in a painting job or parts in a repair — the product portion may be taxed depending on how the invoice is itemized.
Do online retailers have to collect Massachusetts sales tax?
Yes, if they have a physical location in Massachusetts or if their sales to Massachusetts residents exceed $100,000 in a calendar year. Most major online retailers meet one of these thresholds and collect tax at checkout. Smaller sellers may not, in which case you may owe use tax.