Massachusetts has a simple, uniform 6.25% rate statewide with no local add-ons, and has one of the broadest sales tax holidays in the country — a full weekend in August where nearly all retail items under $2,500 are exempt. Massachusetts exempts groceries and most clothing under $175, and has a partial clothing exemption that's more generous than neighboring Connecticut.
Massachusetts sales tax overview
| Component | 2026 Rate |
|---|---|
| State sales tax | 6.25% |
| Avg local add-on | 0.000% |
| Avg combined | 6.25% |
| Maximum combined | 6.25% |
Note: Massachusetts has no local sales tax. The August holiday is one of the broadest — covers nearly all retail items up to $2,500.
Massachusetts sales tax by city
Combined state + local sales tax rates for major cities in Massachusetts:
| City | Combined Rate |
|---|---|
| Boston | 6.25% |
| Worcester | 6.25% |
| Springfield | 6.25% |
What's exempt in Massachusetts
Groceries
Exempt from Massachusetts state sales tax. Local jurisdictions may still tax.
Clothing & footwear
Clothing under $175 is exempt; the portion over $175 is taxed.
Prescription drugs
Exempt from sales tax (typical across most states).
Massachusetts sales tax holidays
During a sales tax holiday, qualifying items are exempt from Massachusetts sales tax. Some local jurisdictions may opt out — check with retailers near you.
Sales Tax Holiday
2nd weekend of August (Sat & Sun)
Most retail items ≤$2,500 per item
How Massachusetts sales tax is calculated
Sales tax in Massachusetts is calculated by multiplying the pre-tax purchase price by the applicable combined rate. The formula is simple:
Sales Tax = Purchase Price × 6.25% (avg combined)
Total = Purchase Price + Sales Tax
The exact rate depends on where the purchase occurs — the state base rate (6.25%) plus any local city or county add-ons. Massachusetts does not allow local sales taxes — the rate is uniform statewide at 6.25%.
Quick calculation examples at average rate 6.25%:
$100 item
$6.25 tax
$106.25 total
$250 item
$15.63 tax
$265.63 total
$500 item
$31.25 tax
$531.25 total
$1,000 item
$62.50 tax
$1062.50 total
Additional tax-free items in Massachusetts
Beyond the standard exemptions, Massachusetts also provides sales tax relief on these categories:
Exemptions may have conditions. Always verify with the Massachusetts Department of Revenue for complete rules.
Massachusetts sales tax in context: rates, history, and neighbors
Massachusetts's uniform 6.25% statewide sales tax (no local add-ons) has been at 6.25% since 2009 (raised from 5%). Massachusetts has the broadest sales tax holiday in the US — the second weekend of August exempts most retail items priced at $2,500 or less per item (clothing has a slightly different exemption — under $175/item year-round, with the holiday extending to higher-priced clothing). MA exempts groceries and prescriptions. Massachusetts taxes most digital goods including streaming services. Compared to neighbors: New Hampshire (0%), Rhode Island (7%), Connecticut (6.35%), Vermont (~6.36% combined), New York (~8.52% combined), Maine (5.5%) — Massachusetts's 6.25% is in the lower middle of New England. The uniform rate (no local) makes MA one of the simpler states for sales tax compliance.
Online shopping & Massachusetts sales tax
Massachusetts requires remote sellers with $100,000+ in Massachusetts sales to collect Massachusetts's 6.25% sales tax. Massachusetts is an early adopter — it began enforcing economic nexus in October 2017, before the Supreme Court's 2018 Wayfair decision. Massachusetts also taxes digital goods: streaming services, downloaded software, and digital subscriptions are all taxable at 6.25%.
Use Tax reminder: If you purchase taxable goods online from a seller who does NOT collect Massachusetts sales tax, you technically owe Use Tax — the same rate as sales tax, reportable on your Massachusetts state tax return. Use Tax enforcement on consumers is rare but the obligation exists for significant purchases.
How much Massachusetts sales tax on common purchases?
Using Massachusetts's average combined rate of 6.25%:
| Purchase | Price | Sales Tax | Total |
|---|---|---|---|
| Grocery cart | $150 | Exempt | $150.00 |
| Clothing / shoes | $120 | Exempt | $120.00 |
| Prescription drug | $80 | Exempt | $80.00 |
| Smartphone | $999 | $62.44 | $1061.44 |
| Laptop / tablet | $1,299 | $81.19 | $1380.19 |
| New car ($35,000) | $35,000 | $2187.50 | $37187.50 |
| Home appliance | $1,500 | $93.75 | $1593.75 |
| Restaurant meal | $60 | $3.75 | $63.75 |
Based on Massachusetts's average combined rate of 6.25%. Exact tax depends on city/county. Use our calculator above for specific locations and amounts.
Collecting sales tax in Massachusetts: business guide
If you sell goods or taxable services to Massachusetts customers, here's what you need to know:
- Registration: Register for a Massachusetts sales tax permit/license through the Massachusetts Department of Revenue before making your first taxable sale. Most states process registrations online within a few days.
- Economic nexus (online sellers): If you have $100,000+ in Massachusetts annual sales or 200+ transactions, you must collect Massachusetts sales tax even without a physical presence in the state — per South Dakota v. Wayfair (2018). The rate is uniform at 6.25% statewide.
- Destination vs origin sourcing: Massachusetts uses destination-based sourcing for most sales — the tax rate where the buyer receives the goods applies. Always use the customer's delivery address to determine the rate.
- Filing frequency: Frequency depends on your Massachusetts sales volume — monthly for high-volume sellers, quarterly or annually for low-volume sellers. Check with the Massachusetts Department of Revenue for your specific filing schedule.
- Marketplace sales: If you sell through Amazon, Etsy, eBay, or similar platforms, the marketplace is required to collect and remit Massachusetts sales tax on your behalf — you don't need to collect it separately on marketplace transactions.
- Resale certificates: Businesses purchasing goods for resale can provide a Massachusetts resale certificate to suppliers to avoid paying sales tax on wholesale purchases. Keep copies of all resale certificates for audits.
Streamlined Sales Tax (SST): Massachusetts is not currently a member of the Streamlined Sales Tax (SST) Agreement — check Massachusetts Department of Revenue for filing specifics.
Massachusetts-specific business compliance details
Massachusetts businesses register with the Massachusetts Department of Revenue (DOR) at mtc.dor.state.ma.us for a Sales and Use Tax registration. Filing frequency: monthly for $1,200+/year tax, quarterly for $100-$1,200, annually for under $100. Out-of-state sellers with $100,000+ in Massachusetts sales must collect MA tax (economic nexus, since October 2017 — Massachusetts was an early adopter, before Wayfair). Marketplace facilitators collect MA tax. Massachusetts uses destination-based sourcing — but with a uniform 6.25% rate, complexity is minimal. The clothing exemption applies to items under $175 — for items over $175, only the amount above $175 is taxed. Massachusetts taxes most digital products. Penalties: 1% per month (capped at 25%) plus interest. The annual sales tax holiday creates a predictable revenue spike.
Massachusetts sales tax frequently asked questions
How does Massachusetts's clothing exemption work?
Massachusetts exempts clothing and footwear under $175 per item from sales tax. So a $174 pair of shoes is fully exempt; a $200 pair has only the $25 excess ($200 - $175) taxed at 6.25%, adding $1.56 in tax. Technically, you pay tax only on the amount above $175 per item. This is more complex than a simple cutoff, but more consumer-friendly than states like Connecticut that tax the full price once you exceed their threshold.
What items are covered by Massachusetts's annual Sales Tax Holiday?
Massachusetts's Sales Tax Holiday (2nd weekend of August, Saturday and Sunday) exempts most retail items priced at $2,500 or less per item. This is one of the broadest holidays in the US — it covers electronics, appliances, furniture, sports equipment, and most other retail goods, not just clothing or school supplies. The per-item cap means a $2,500 TV is fully exempt, but a $3,000 TV would be taxed on the full amount (no partial exemption).
Are services taxable in Massachusetts?
Most services in Massachusetts are NOT taxable — Massachusetts takes a narrower approach than some states. The main taxable services include: telecom services, certain computer and data processing services, and utility services. Haircuts, legal services, medical services, accounting, and most other professional services are exempt. This is notably different from states like Kentucky and Iowa that have expanded services taxation.
Massachusetts city paycheck calculators
If you live or work in a Massachusetts city, see our city-specific paycheck calculators for take-home pay including any local income tax, plus local employer and cost-of-living context: