Massachusetts sales tax applies to most goods you buy in the state, but not to services or groceries

Massachusetts sales tax is a 6.25% tax added to the price of taxable items when you buy them at a store, online, or from a vendor. It is collected by the seller and sent to the state Department of Revenue. You pay it at the register or at checkout — it is not something you file on your tax return.

The tax applies to tangible goods like clothing, electronics, furniture, and household items. It does not explore to services (haircuts, repairs, consulting), groceries, or prescription medications. Some items fall into gray areas — prepared food from a restaurant is taxed, but a raw chicken from a grocery store is not.

If you buy something online from an out-of-state seller, Massachusetts sales tax may or may not be charged depending on whether that seller has a physical presence in the state or meets other thresholds. If tax was not collected at purchase, you may owe it when you file your state return, though most individual buyers do not report this.

Key Takeaways

  • Massachusetts sales tax is 6.25% and is added to the price of most goods at the point of sale.
  • Groceries, prescription drugs, and services are not subject to sales tax in Massachusetts.
  • Prepared food and restaurant meals are taxed, but raw food from a grocery store is not.
  • Online purchases from sellers without a Massachusetts location may not have tax collected, but you may owe it on your state return.
  • The seller collects and remits the tax to the state — you do not file it yourself on your personal tax return.

What items are taxed and what are not

The line between taxable and tax-free purchases is not always obvious. Clothing and shoes are not taxed in Massachusetts, but a bathing suit is. A pair of socks is tax-free, but a single sock is taxed (because it is not a pair). These rules exist in the tax code and sellers are supposed to know them, though mistakes happen.

Groceries are not taxed, but the definition is narrow. Bread, milk, eggs, fresh produce, and raw meat are all tax-free. Once food is prepared or ready to eat, it becomes taxable. A rotisserie chicken from the grocery store is taxed. A sandwich from the deli counter is taxed. A frozen pizza is taxed. A bag of frozen vegetables is not.

Prescription medications are never taxed. Over-the-counter drugs like aspirin or cold medicine are taxed. Vitamins and supplements are taxed. Medical equipment like crutches or wheelchairs is not taxed if you have a prescription, but is taxed if you buy it without one.

Services are not taxed, which means you pay no sales tax on haircuts, plumbing repairs, dental work, or consulting fees. However, if a service includes a tangible product, the product portion may be taxed. A plumber who charges you $200 for labor and $50 for a pipe fitting will charge tax only on the $50 part.

How sales tax works when you check out

At a physical store, the cashier rings up your items and the register calculates the tax based on what you bought. The tax is added to your total and you pay it along with the price. You see the breakdown on your receipt — the subtotal, the tax amount, and the final total.

Online, the process depends on the seller. Large retailers like Amazon, Target, and Walmart collect Massachusetts sales tax at checkout if you have a Massachusetts address. Smaller online sellers may not have the systems in place to collect tax, so you may see no tax added. This does not mean you do not owe it — it means the burden shifts to you to report it.

Some online marketplaces like eBay and Etsy have rules about when sellers must collect tax. As of 2024, most sellers on these platforms are required to collect sales tax in Massachusetts, but the rules change and not all sellers comply. If you are unsure whether tax was collected, check your receipt or order confirmation.

Sales tax and online purchases from out-of-state sellers

If you order from a company that has no warehouse, office, or employees in Massachusetts, they may not collect Massachusetts sales tax. This is because sales tax is based on where the seller has nexus — a legal connection to the state. A company with no nexus in Massachusetts has no obligation to collect the tax.

However, you still owe the tax. Massachusetts law requires you to pay what is called use tax — which is essentially sales tax on items you buy outside the state and bring into Massachusetts, or buy online from out-of-state sellers. The rate is the same: 6.25%.

In practice, very few individual buyers report use tax on their personal returns. The state does not have a practical way to enforce it for small purchases. However, if you run a business or make large purchases, the state may expect you to report it. You would calculate the tax owed and include it on your Massachusetts tax return when you file.

Who collects the tax and where it goes

The seller — whether a store, online retailer, or marketplace — is responsible for collecting sales tax from you at the point of sale. They hold the money and send it to the Massachusetts Department of Revenue, usually monthly or quarterly depending on their sales volume.

The state uses sales tax revenue to fund schools, roads, public safety, and other services. It is separate from income tax and property tax. A business that fails to collect or remit sales tax can face penalties, interest, and legal action from the state.

If a seller collects tax from you but does not send it to the state, that is tax fraud. You are not liable for the seller's failure to remit — you have done your part by paying it. Your receipt is your proof of payment.

Sales tax on specific situations

If you buy something and return it, the store refunds the tax along with the purchase price. You do not pay tax twice if you exchange an item for a different one — the tax is calculated on the new item only.

If you buy an item in another state and bring it to Massachusetts, you do not owe sales tax again. Sales tax is paid once, at the point of purchase. If you bought it in New Hampshire (which has no sales tax) and bring it to Massachusetts, you technically owe use tax, but again, this is rarely enforced for personal purchases.

If you are a Massachusetts resident and buy something while traveling out of state, you pay that state's sales tax, not Massachusetts tax. When you return home, you do not owe Massachusetts tax on it.

Businesses that resell items — like a retail store buying inventory from a wholesaler — do not pay sales tax on the wholesale purchase. They provide a resale certificate to the wholesaler. They only pay sales tax when the final customer buys the item.

Common mistakes and misunderstandings

Many people think sales tax is optional or that they can avoid it by shopping online. Sales tax is mandatory on taxable items in Massachusetts, whether you shop in person or online. The only way to avoid it is to buy tax-exempt items like groceries or prescription drugs.

Another common mistake is assuming that all clothing is tax-free. Most clothing is, but not all. Accessories like hats, gloves, and belts are tax-free. Costume pieces and theatrical clothing are taxed. The rule is that everyday clothing worn for normal purposes is tax-free, but specialty items are taxed.

Some people believe that if they do not see tax on their receipt, they do not owe it. This is not true for online purchases from out-of-state sellers. The tax is still owed; it is just not collected at checkout. You are responsible for reporting it if you file a Massachusetts return.

Frequently Asked Questions

Is Massachusetts sales tax the same everywhere in the state?

Yes. Massachusetts has a flat 6.25% state sales tax that applies everywhere in the state. Some cities and towns used to have local sales taxes, but those were eliminated. There are no local add-ons like you see in some other states.

Do I have to pay sales tax if I buy something for a business?

If you are buying items to resell, you do not pay sales tax — you provide a resale certificate instead. If you are buying supplies or equipment for your business to use (not resell), you do pay sales tax, just like a consumer would.

What happens if a store charges me sales tax on something that should be tax-free?

You can ask the cashier or manager to correct it. If they will not, you can contact the store's customer service. Keep your receipt. If the error is large or repeated, you can file a complaint with the Massachusetts Department of Revenue, though they focus mainly on seller compliance, not individual transactions.

Do I owe sales tax on items I buy from a private person, like on Facebook Marketplace?

Technically, yes — you owe use tax on taxable items. However, private sales between individuals are rarely reported or enforced. If you are buying from a business that operates on a marketplace, sales tax should be collected. If you are buying from an individual, it is a gray area that the state does not actively pursue for small transactions.

Can I deduct sales tax I paid on my personal tax return?

Not on your federal return. On your Massachusetts state return, you cannot deduct sales tax paid on personal purchases. However, if you own a business and paid sales tax on business supplies or equipment, you may be able to deduct or depreciate those items — that is a different calculation handled through your business tax return.