Massachusetts charges a 6.25% sales tax on most goods, with some important exceptions
Massachusetts sales tax is a 6.25% tax added to the price of most items you buy in the state. The tax applies at the point of sale — when you pay for something in a store, online, or by mail order. The seller collects the tax from you and sends it to the Massachusetts Department of Revenue.
Not everything is taxed the same way. Groceries, prescription medications, and certain clothing items are exempt or taxed differently. Services — like haircuts, car repairs, or plumbing — are generally not subject to sales tax in Massachusetts, though there are exceptions. Understanding which items are taxed and which are not can help you budget and avoid surprises at checkout.
Key Takeaways
- Massachusetts sales tax is 6.25% and applies to most tangible goods, but not to groceries, prescription drugs, or most clothing under $175 per item.
- Services like haircuts, repairs, and professional labor are not taxed, but some service-related items (like parts or materials) may be.
- Online purchases from out-of-state sellers may or may not have Massachusetts sales tax added, depending on whether the seller has a physical presence in the state.
- If you buy something tax-free and later use it for a taxable purpose, you may owe use tax on the difference.
- Certain groups — including nonprofits, government agencies, and registered resellers — can buy items tax-free with proper documentation.
What is taxed and what is not
The 6.25% rate applies to tangible personal property — physical items you can touch and take home. This includes clothing, electronics, furniture, toys, and most household goods. The tax also applies to prepared food and restaurant meals.
Groceries are exempt from sales tax in Massachusetts. This means bread, milk, vegetables, meat, and other food you prepare at home are not taxed. However, prepared foods — sandwiches from a deli counter, hot pizza, or items from a salad bar — are taxed because they are considered meals rather than groceries.
Prescription medications are also exempt. Over-the-counter drugs like aspirin or cold medicine are taxed, but medications you need a prescription to buy are not. Clothing and footwear under $175 per item are exempt, but items over that threshold are taxed. A $200 coat is taxed; a $150 sweater is not.
Services are generally not taxed. A haircut, dental work, car repair, plumbing, or accounting information are not subject to sales tax. However, if the service includes selling you a taxable item — like parts for a repair — the parts themselves may be taxed while the labor is not.
How the tax appears on your receipt
When you buy something in a Massachusetts store, the seller adds the 6.25% tax to the subtotal and shows it as a separate line on your receipt. If you buy a $20 item, the tax is $1.25, and your total is $21.25. The seller is responsible for collecting this tax accurately and remitting it to the state.
Some retailers include the tax in the displayed price rather than adding it at checkout, though this is less common. Either way, you pay the same amount — the tax is built into what you owe. If you are unsure whether a price includes tax, ask the cashier before you pay.
Sales tax on online and mail orders
When you order something online or by mail from a Massachusetts-based seller, Massachusetts sales tax is added to your order. If you order from an out-of-state seller, whether tax is added depends on whether that seller has a physical presence in Massachusetts — such as a warehouse, office, or store location. Large online retailers with distribution centers in Massachusetts typically collect the tax; smaller sellers without a Massachusetts location may not.
If you buy something online without Massachusetts sales tax and have it shipped to Massachusetts, you may owe use tax on that purchase. Use tax is a tax on items you buy outside the state and bring into Massachusetts for use. It is calculated at the same 6.25% rate. Most people do not pay use tax voluntarily, but it is technically owed and can be reported on your state income tax return if you want to claim it as a deduction.
Who can buy without paying sales tax
Certain organizations and people can buy items without paying sales tax if they have the right documentation. Nonprofits registered with the state, government agencies, and schools can purchase items tax-free by providing a resale certificate or tax-exempt certificate to the seller.
Registered resellers — people or businesses that buy items to resell them — can also buy tax-free using a resale certificate. This prevents the tax from being charged twice: once when the reseller buys the item and again when the customer buys it. If you are starting a small business and plan to resell items, you can register with the Massachusetts Department of Revenue to get a resale certificate.
Individuals cannot straightforward decide not to pay sales tax. The exemptions are limited to the groups listed above and require proof of status. If you are unsure whether your organization qualifies, contact the Massachusetts Department of Revenue.
Special tax rates and local options
Massachusetts has one statewide sales tax rate of 6.25%. Unlike some states, Massachusetts does not allow cities or towns to add their own local sales tax on top of the state rate. What you pay is the same whether you shop in Boston, Worcester, or Springfield.
Some items have special rules. Meals and prepared foods are taxed at 6.25%, the same as other goods. Alcohol is subject to sales tax plus excise taxes that vary by type — beer, wine, and spirits each have different rates set by the state. Hotel rooms are taxed at 6.25% plus a local occupancy tax that varies by city.
Understanding use tax and what you owe
Use tax applies when you buy something outside Massachusetts and bring it into the state for your own use. If you drive to New Hampshire, buy a $100 item with no sales tax, and bring it home to Massachusetts, you technically owe 6.25% use tax on that $100 — $6.25. The same applies to online purchases from sellers who do not collect Massachusetts tax.
Use tax is self-reported. The state does not send you a bill for it. Instead, you can report it on your Massachusetts income tax return if you choose to. Many people do not report use tax, but keeping receipts from out-of-state purchases can help you calculate what you owe if you decide to report it. If you make frequent out-of-state purchases, tracking them throughout the year makes the calculation easier.
Frequently Asked Questions
Is clothing always tax-free in Massachusetts?
Clothing under $175 per item is tax-free. A single shirt, pair of pants, or jacket under that price is not taxed. However, if one item costs $175 or more, the entire item is taxed at 6.25%. A $200 winter coat is fully taxed; a $150 coat is not taxed at all.
Do I pay sales tax on groceries?
No. Food you buy to prepare at home — produce, meat, dairy, bread, and canned goods — is not taxed. However, prepared foods like deli sandwiches, hot pizza, or restaurant meals are taxed. The difference is whether you are buying ingredients or a ready-to-eat meal.
What happens if I buy something tax-free and then use it for business?
If you bought an item as a consumer and later use it for business purposes, you may owe use tax on the difference between what you paid and what the tax would have been. This situation is uncommon and depends on the specific circumstances. Contact the Massachusetts Department of Revenue if you are unsure.
Do I owe sales tax on services like haircuts or car repairs?
No. Labor and services are not taxed in Massachusetts. You pay for the haircut or repair work without sales tax. However, if the service includes selling you a taxable item — like parts for a car repair — those parts may be taxed separately from the labor.
Why was I charged sales tax on an online purchase from out of state?
The seller likely has a physical presence in Massachusetts, such as a warehouse or office. Federal law requires sellers with a substantial presence in a state to collect that state's sales tax. Large retailers with distribution centers in Massachusetts must collect the tax even if you order online.