Massachusetts has a 6.25% sales tax on most goods, with specific exemptions for groceries and clothing

The Massachusetts sales tax rate is 6.25% on tangible personal property — the items you buy in stores. This rate has been in place since 1966 and applies statewide; Massachusetts does not allow cities or towns to add a local sales tax on top of the state rate.

However, not everything you purchase is subject to this tax. Groceries for home consumption are exempt, as is most clothing and footwear under $175 per item. Prepared food, restaurant meals, and takeout are taxed. Services — haircuts, car repairs, accounting — are generally not taxed in Massachusetts, though there are exceptions.

The tax is collected by the retailer at the point of sale and sent to the Massachusetts Department of Revenue. You do not file a separate form to pay sales tax as a consumer; it is added to your bill automatically.

Key Takeaways

  • Massachusetts sales tax is 6.25% on most goods, with no local add-on taxes allowed.
  • Groceries and clothing under $175 per item are exempt from sales tax.
  • Prepared food, restaurant meals, and takeout are taxed at the full 6.25% rate.
  • Services like haircuts and repairs are generally not subject to sales tax in Massachusetts.
  • The retailer collects and remits the tax; you do not file a separate return as a consumer.

What is and is not taxed in Massachusetts

Taxed items include clothing and footwear over $175 per item, electronics, furniture, books, toys, and most other tangible goods. Prepared food — anything sold hot or ready to eat — is taxed. This includes restaurant meals, deli sandwiches, pizza, and coffee from a café. Takeout and delivery orders are taxed the same way as dining in.

Exempt items include groceries sold for home consumption: bread, milk, vegetables, meat, cereal, and frozen foods meant to be prepared at home. Clothing and footwear under $175 per item are exempt; the exemption applies per item, not per transaction. A $200 coat is taxed, but a $150 coat is not. Prescription medications are exempt; over-the-counter drugs and vitamins are taxed.

Items that fall into gray areas often confuse shoppers. Candy and soda are taxed because they are not considered groceries. Dietary supplements are taxed. Hot prepared foods are taxed even if you buy them at a grocery store — a rotisserie chicken from a supermarket deli is taxed, but a raw chicken from the meat counter is not.

Services that are not subject to sales tax

Most services in Massachusetts are not taxed. This includes haircuts and salon services, car repairs and maintenance, plumbing and electrical work, accounting and tax preparation, legal services, and medical services. If you pay a plumber to fix your sink, you pay no sales tax on the labor.

However, if the service involves selling you a tangible item, the item itself may be taxed. A mechanic who replaces your car's oil filter charges no tax on the labor, but if you buy a replacement part from an auto parts store, that part is taxed. A salon that sells you shampoo charges tax on the shampoo but not on the haircut.

Certain services are exceptions to this rule. Telecommunications services — your cell phone bill and internet service — are taxed. Parking and storage services are taxed. Lodging (hotel rooms) is taxed at 6.25%, plus an additional 5.7% room occupancy excise tax in most municipalities, bringing the total to nearly 12%.

The $175 clothing exemption and how it works

Massachusetts exempts clothing and footwear under $175 per item from sales tax. The key word is per item. If you buy five $30 shirts, none of them are taxed. If you buy one $200 jacket, it is taxed on the full amount. If you buy a $175 item exactly, it is not taxed; the exemption applies to items under that threshold.

The exemption covers everyday clothing: shirts, pants, dresses, socks, underwear, hats, gloves, scarves, and shoes. It also covers clothing accessories like belts and ties. It does not cover items that are not primarily clothing, such as handbags, wallets, or jewelry, even if worn on the body.

Athletic and protective gear falls into this category. A $100 pair of running shoes is exempt. A $150 bicycle helmet is exempt. A $200 ski jacket is taxed because it exceeds the threshold. The retailer is responsible for explore the exemption correctly; if you are charged tax on a $150 coat, you can ask the store to correct the charge at the register.

How to handle sales tax on your personal tax return

As a consumer, you do not report sales tax paid on your personal income tax return in Massachusetts. The retailer collects it and sends it to the state; your role ends when you pay at the register.

If you are self-employed or own a business, you may need to collect and remit sales tax on items you sell. This is different from the tax you pay as a consumer. A business owner registers with the Massachusetts Department of Revenue, collects tax from customers, and files a sales tax return (Form ST-9) monthly or quarterly, depending on the volume of sales. This is a separate obligation from your personal income tax return.

If you believe you were overcharged sales tax — for example, charged tax on a clothing item under $175 — contact the store directly. Most will correct the error when ready. You do not need to file a claim with the state.

Sales tax on online and mail orders

Massachusetts requires sales tax to be collected on online purchases shipped to a Massachusetts address, regardless of where the seller is located. This applies to purchases from out-of-state retailers, including major online marketplaces. The retailer is responsible for collecting and remitting the tax.

In practice, most large online retailers already collect Massachusetts sales tax at checkout. If you order from a small out-of-state seller who does not collect tax, you may owe use tax — a tax on items purchased outside the state for use within it. Most consumers do not pay use tax voluntarily, but it is technically owed. If you are audited, the state may ask about untaxed purchases.

Mail orders follow the same rule as online orders. If you order from a catalog or by phone and the item is shipped to Massachusetts, tax should be collected. Digital goods — e-books, software, music downloads — are generally not taxed in Massachusetts.

Frequently Asked Questions

Is tax included in the price shown on the shelf tag?

No. The price on the shelf tag is the pre-tax price. Sales tax is added at the register. A $10 item will cost $10.63 after the 6.25% tax is applied. This is why your total at checkout is higher than the sum of the prices you saw.

Do I pay sales tax on groceries if I use SNAP benefits?

No. SNAP (food stamps) can only be used to buy items that are exempt from sales tax — groceries for home consumption. You cannot use SNAP to buy prepared food, hot items, or non-food products. The exemption is built into what SNAP covers, not a separate tax rule.

What if I buy clothing in another state and bring it to Massachusetts?

You do not owe Massachusetts sales tax on items you bought in another state and brought home. Sales tax is paid where the purchase occurs. However, if you order an item online to be shipped to Massachusetts, Massachusetts tax applies regardless of where the seller is located.

Are there any temporary sales tax holidays in Massachusetts?

Massachusetts does not have an annual sales tax holiday. Some states offer a back-to-school tax-free week in August; Massachusetts does not. The 6.25% rate applies year-round to taxable items.

How do I know if something is considered prepared food or a grocery?

If it is sold hot or ready to eat, it is taxed. A sandwich from a deli counter is taxed. A loaf of bread is not. A rotisserie chicken from a grocery store deli is taxed. A raw chicken from the meat department is not. When in doubt, ask the cashier before you check out.