Ultimate Massachusetts Sales Tax Guide

Although Massachusetts has just a single state sales tax rate, its filing dates and other sales tax rules can still be confusing. 

But don’t worry!

In this Massachusetts sales tax guide, we’ll address all the essential questions, such as what creates an economic nexus, the meals tax rate, tax-exempt items, and more. 

We’ll also share a reliable sales tax solution to ensure sales tax compliance throughout the year. 

Massachusetts Sales Tax Rate Range 2024

Massachusetts, United States, has a statewide sales tax of 6.250%.

This means the state doesn’t impose any type of local sales tax rates on a taxable sale, as seen in states like New York and South Dakota.

For example, the sales tax rates of the city of Quincy in Norfolk County and Salem, Essex County in Massachusetts, is 6.250%.

Wondering what your city’s sales tax rates are? Find out here.

Next, let’s see how you can collect sales tax in Massachusetts.

Collecting Massachusetts Sales Tax from Customers

Here are a few questions you may have about sales tax collection in Massachusetts:

Do I Have to Collect Massachusetts Sales Tax from Customers?

Retailers who meet these two requirements are required to collect state sales tax in Massachusetts: 

• You have a sales tax nexus in Massachusetts
• You sell taxable products or services in Massachusetts

What Creates a Sales Tax Nexus in Massachusetts?

According to Massachusetts sales tax law, some factors that create nexus in Massachusetts include:

• Economic Nexus: Out-of-state businesses, like online sellers, with taxable sales of more than $100,000 in the past 12 months.

• Physical Location: Businesses having a store, office, or warehouse in the state.

• Employee Location: Businesses with employees selling tangible personal property or telecommunications services in the state.

• Trade Shows: Businesses that sell taxable goods from an inventory based in Massachusetts in trade shows must collect use tax. Other vendors who sell tangible personal property through representatives for part or more than three days in a calendar year should also collect sales tax.

Learn more about the sales tax nexus and when you’re required to collect sales tax.

Do I Have to Collect Sales Tax from Massachusetts Customers if I Sell on Amazon, Walmart, Ebay, or Etsy?

No. 

Massachusetts has a marketplace facilitator law, which means that marketplaces like Walmart or Amazon should collect sales tax on behalf of 3rd party online sellers on their platforms. 

But if you have a sales tax nexus in Massachusetts, remember you still need to collect sales tax on your other non-marketplace Massachusetts sales.

Taxable Products in Massachusetts

Massachusetts taxes most tangible personal property. For instance, food and clothing that cost more than $175 are taxed in the state. Sales tax is also imposed on certain services, like installation and telecommunications services. 

Additionally, Massachusetts imposes a Meals Sales Tax on meals bought from restaurants. This includes a state tax of 6.250% and a local option meals excise of 0.750%, bringing the total sales tax to 7.000%.

Note: Starting from July 2024, the Meals, Food & Beverage (MFB) account type will replace the Meals Tax (MLS) account type for reporting and collecting meals tax.

Here’s a run-down of other retail items taxed in Massachusetts:

Are Groceries Taxable in Massachusetts? 

No. Groceries are non-taxable in Massachusetts.

Is Clothing Taxable in Massachusetts?

Yes, clothing is non-taxable in Massachusetts as long as it sells for less than $175 per item. If they cost more than $175, sales tax is only imposed on the amount over $175.

However, apparel “designed solely for athletic or protective use” is taxable in the state.

Read more about Massachusetts clothing taxability here.

Are Digital Products Taxable in Massachusetts?

No, digital products have a sales tax exemption in Massachusetts.

Is Software-as-a-Service (SaaS) Taxable in Massachusetts?

No. SaaS is taxable in Massachusetts. 

Are Services Taxable in Massachusetts?

Most services are tax-exempt in Massachusetts. 

However, some services, like telecommunications services, are taxable in the state. A tangible item sold along with a service (such as a taxable bottle of shampoo sold with a non-taxable haircut) is also subject to sales tax.

Tax-Exempt Items

Some of the tax-exempt retail items in Massachusetts are:

• Periodicals, like newspapers and magazines.
• Tickets to sporting and amusement events.
• Utilities (gas, steam, electricity) and heating fuel to residential users and small businesses with 5 or fewer employees and gross income of less than $1 million.
• Local residential telephone services that are billed on a recurring basis or for message unit charges up to a total of $30 per month.
• Shipping and transportation services.
• Personal or professional services, like accounting, insurance, and haircuts.
• Sales of machinery, equipment, and materials used in agricultural production.
• Sales made to federal and Massachusetts state or municipal government agencies or entities.
• Food items like edible oils, gum, and baked goods.

But to collect sales tax, you need a sales tax permit. Let's explore how you can get one.

How to Register for a Massachusetts Seller's Permit

If you have a sales tax nexus in the state, register your business at MassTaxConnect.

Learn how to register for a sales tax permit in every US state.

Do I Need a Massachusetts Sales Tax License if I’m Only a Wholesaler? 

You can apply for a Form ST-4 (Sales Tax Resale Certificate) if you are buying products and services for resale and not for retail.  

Do I Need a Massachusetts Seller's Permit if I Only Sell Temporarily in the State?

Yes.

Massachusetts sales tax law requires anyone making sales in the state, even on a temporary basis, such as at a trade show or craft fair, to register for, collect, and remit sales tax. 

How to Collect Sales Tax in Massachusetts

Since Massachusetts has a single state sales tax rate, you can collect that rate from every buyer when shipping the product to Massachusetts. 

For instance, if you are based in New York or New Hampshire and make a taxable sale in Salem, Massachusetts — you’ll need to charge the Massachusetts sales tax rate. 

Note: Businesses with Direct Payment Permits can make a direct deposit of their due sales tax to the Department of Revenue instead of paying at the time of purchase. These permits are for businesses expected to pay $50,000 or more annually.

Should You Collect Sales Tax on Shipping Charges in Massachusetts?

No. 

Shipping charges are not subject to Massachusetts sales tax as long as they are separately stated from the price of the item(s) sold.

Find out more about sales tax on shipping in every US state.

How to File and Pay Sales Tax in Massachusetts 

When your sales tax filing due date approaches, you can file Massachusetts sales tax returns in multiple ways:

• File and pay online: Massachusetts requires sales and use taxpayers to file and pay online. You can do this via MassTaxConnect.
• Let Zamp handle your Massachusetts sales tax filing and remittance so you never have to look at a sales tax return again! 

Explore how you can file and pay sales tax in other US states.

FAQs on Paying and Filing Massachusetts Sales Tax

What Is Use Tax?

Use tax is usually paid when retailers don’t collect any sales tax on taxable goods and services or are paid a lower sales tax rate than the sales tax in Massachusetts.

Massachusetts use tax is the same as its state sales tax rate, which is 6.250%. It applies to the sale and rental charge of all tangible personal property bought via phone, mail, or online.

Additionally, if you purchase tangible personal property and pay a sales or use tax in another state in the United States with a sales/use tax agreement with Massachusetts, you’ll receive a credit for that tax amount against the Massachusetts use tax. 

I Didn’t Collect any Massachusetts Sales Tax During this Period. Do I still Need to File a Return?

Yes. You should still file a “zero” return with the state even if you didn’t collect any sales tax over the taxable period. 

What Is the Penalty for Filing and/or Paying Massachusetts Sales Tax Late?

The penalty for failing to file Massachusetts sales tax is 1% of the tax due per month or a fraction of a month late, with a maximum penalty of 25%.

The penalty for failing to pay Massachusetts sales tax is also 1% of the tax due per month or a fraction of a month late, with a maximum penalty of 25%.

The penalty for failing to pay electronically when required is up to $100 per payment.

Can I Get an Extension on Filing My Massachusetts Sales Tax Return? 

Contact the Massachusetts Department of Revenue to inquire about an extension of time to file or pay your tax liability.

Can I Amend a Massachusetts Sales Tax Return? 

Yes, you can amend a sales tax return using the “Amend” feature in MassTaxConnect.

How Often Do I Need to File and Pay Sales Tax in Massachusetts?

How often Massachusetts requires taxpayers to file depends on how much sales tax you collect annually.

Massachusetts sales tax filing frequencies are: 

Sales & Use Tax Collected Per Year	Filing Frequency
$100 or less	Annually
$101 to $1,200	Quarterly
$1,201 or more	Monthly

Further, sales taxpayers with more than $150,000 in sales tax liability in prior years must pay advance payments of at least 70% of the tax due on or before the 25th of the same month where the sales tax is collected. 

Learn more about Massachusetts's advanced sales tax payments.

What Is the Tax Audit Period in Massachusetts?

Tax audits are usually conducted over a 3-year period. However, they can extend up to 6 years if you don’t file your returns on time.

A tax audit usually happens when authorities require more information on your sales tax return or need to notify you of an error.

Does Massachusetts Have a Sales Tax Holiday?

The sales tax holiday for the year 2024 falls on August 10 and 11. 

Most purchases during a sales tax holiday won’t be subjected to sales or use tax.

Massachusetts Sales Tax Due Dates

Massachusetts sales tax is due by the 30th day of the month following the taxable period.

If your sales tax filing due date falls on a weekend or holiday, it’s due the next business day.

Taxable Period	Filing Due Date
January 2024	February 29, 2024
February 2024	April 1, 2024
March 2024	April 30, 2024
April 2024	May 30, 2024
May 2024	July 1, 2024
June 2024	July 30, 2024
July 2024	August 30, 2024
August 2024	September 30, 2024
September 2024	October 30, 2024
October 2024	December 2, 2024
November 2024	December 30, 2024
December 2024	January 30, 2025
January 2025	February 28, 2026

Massachusetts quarterly sales tax filing due dates:

Taxable Period	Filing Dates
Q1 (Jan-March) 2024	April 30, 2024
Q2 (Apr-June) 2024	July 30, 2024
Q3 (July-Sept) 2024	October 30, 2024
Q4 (Oct-Dec) 2024	January 30, 2025

Let The Experts Handle Your Massachusetts Sales Taxes

With Zamp, handling sales tax becomes a breeze.

Our premium solution offers precise tax calculations, seamless one-click registrations, and hassle-free filings, simplifying your entire sales tax process.

Ready to simplify your sales tax management? Get started today!