Table of contents
Massachusetts Sales Tax Guide 2025 for Businesses
Sales tax in Massachusetts is a 6.25% statewide rate in 2025, with no additional local taxes, ensuring uniformity across the state. Massachusetts does not participate in the Streamlined Sales Tax initiative (SSUTA), but its consistent statewide rate simplifies compliance.
With key exemptions for groceries, prescription medications, and most clothing under $175, Massachusetts maintains a straightforward tax structure for businesses and consumers alike.
Massachusetts Sales Tax Due Date
In Massachusetts, the due dates for paying sales taxes and filing sales tax returns depend on your assigned filing frequency, which is determined by your total taxable sales and tax liability.
Filing Frequency | Criteria | Due Date |
|---|---|---|
Monthly | Required for businesses collecting $100 or more in sales tax per month. | Due on the 20th of the following month. |
Quarterly | For businesses collecting less than $100 in sales tax per month. | Due on the 20th of the month following the quarter (e.g., April 20 for Q1). |
Annually | For businesses with minimal tax liabilities as approved by the Department of Revenue. | Due on January 20 of the following year. |
Key Notes
If the due date falls on a weekend or holiday, payments are typically due on the next business day.
Late filings or payments may result in penalties and interest, so timely compliance is essential.
Payments and filings can be completed through the MassTaxConnect Portal.
Massachusetts Sales Tax Rate in 2025
Massachusetts imposes a statewide sales tax of 6.25%, with no additional local sales taxes, creating a uniform rate across the state.
Tax Type | Rate | Description |
|---|---|---|
State Sales Tax | 6.25% | Applies to most retail sales of tangible personal property and certain services. |
Local Sales Tax | None | Massachusetts does not impose any additional local sales taxes. |
Notes
Massachusetts exempts essential items such as groceries, prescription medications, and clothing under $175 from sales tax.
Only the portion of clothing priced above $175 is subject to the 6.25% sales tax.
2025 Massachusetts Local Sales Tax Rates Table
Massachusetts imposes a uniform statewide sales tax rate of 6.25%, with no additional local sales taxes, ensuring consistency across the state.
City/Town | Local Sales Tax Rate | Total Sales Tax Rate |
|---|---|---|
Boston | None | 6.25% |
Cambridge | None | 6.25% |
Lowell | None | 6.25% |
Springfield | None | 6.25% |
Worcester | None | 6.25% |
Quincy | None | 6.25% |
Lynn | None | 6.25% |
Newton | None | 6.25% |
Somerville | None | 6.25% |
Notes
Massachusetts does not impose local sales taxes, ensuring the rate remains consistent statewide.
Essential items such as groceries, prescription medications, and clothing priced under $175 are exempt from the sales tax.
For more information, visit the Massachusetts Department of Revenue.
CQ For city-based tax rates in Massachusetts, visit our Massachusetts Local Sales Tax Directory and search for your city.
Massachusetts Sales Tax Calculator Example with Customers in Multiple Locations
An online retailer based in Florida establishes economic nexus in Massachusetts by exceeding $100,000 in annual sales or 200 transactions, requiring them to collect and remit sales tax for purchases made by Massachusetts residents. The retailer makes sales to customers across the state, where a uniform statewide sales tax rate of 6.25% applies.
Detail | Description |
|---|---|
Business | Online retailer based in Florida with economic nexus in Massachusetts. |
Customer Purchases | Customer A in Boston $1,200 total, $800 taxable, $400 exempt (e.g., clothing under $175). Customer B in Worcester $900 total, $600 taxable, $300 exempt. Customer C in Springfield $500 total, $400 taxable, $100 exempt. |
Customer Locations | Boston, Worcester, Springfield All subject to the uniform 6.25% statewide sales tax rate. |
Massachusetts Sales Tax Calculations
Customer | Taxable Amount | Total Tax Rate | Total Tax Due |
|---|---|---|---|
Customer A | $800 | $800 × 6.25% = $50.00 | $50.00 |
Customer B | $600 | $600 × 6.25% = $37.50 | $37.50 |
Customer C | $400 | $400 × 6.25% = $25.00 | $25.00 |
Total Sales Tax Due in Massachusetts
$50.00 (Customer A) + $37.50 (Customer B) + $25.00 (Customer C) = $112.50
Key Considerations for Businesses
Location Accuracy: Although Massachusetts has a uniform tax rate, ensure all taxable transactions are properly tracked and reported.
Exemption Management: Exemptions include groceries, prescription medications, and most clothing under $175. Only the portion of clothing above $175 is taxable.
Tax Reporting: Accurately track taxable and exempt sales for timely filing and remittance through the Massachusetts Department of Revenue’s MassTaxConnect portal.
Kintsugi Intelligence automates location-based tax rate application, exemption management, and accurate reporting across all your one-click integrations to ERP, HR, and eCommerce systems like Shopify, BigCommerce, Amazon, Quickbooks, and Rippling.
Is there a Massachusetts SaaS sales tax?
Yes, Massachusetts imposes sales tax on Software as a Service (SaaS), as it is considered taxable tangible personal property when accessed electronically.
Category | Details | Examples |
|---|---|---|
Taxable SaaS | SaaS products are subject to Massachusetts’s 6.25% state sales tax when the software is prewritten and accessed electronically. | Cloud-based accounting software, CRM tools. |
Non-Taxable SaaS | Custom software development and consulting services are typically exempt, provided the software is specifically tailored for the client. | Custom software solutions. |
Requirements for Businesses | SaaS providers with nexus in Massachusetts must collect and remit sales tax for taxable transactions. | Out-of-state providers meeting nexus thresholds. |
Additional Considerations
Massachusetts distinguishes between prewritten (taxable) and custom (non-taxable) software, impacting SaaS taxability.
Businesses can streamline compliance by getting started with Kintsugi for sales tax automation, ensuring accurate tax calculations and filings.
For further guidance, consult the Massachusetts Department of Revenue or a tax professional.
Is there sales tax on clothing in Massachusetts?
Yes, Massachusetts imposes sales tax on clothing, but there are specific exemptions and thresholds:
Category | Details |
|---|---|
Taxable Clothing | Clothing purchases above $175 per item are subject to the 6.25% state sales tax, but only the amount exceeding $175 is taxed. |
Exemptions | Clothing items priced at $175 or less per item are exempt from sales tax. |
Annual Sales Tax Holiday | Massachusetts typically holds a sales tax holiday in August, during which all clothing purchases are tax-exempt. |
For more details on sales tax on clothing in Massachusetts, read Kintsugi's guide: Is There Sales Tax on Clothing in Massachusetts: 2025 Business Guide.
FAQs
What is the Massachusetts state sales tax?
Massachusetts imposes a 6.25% statewide sales tax with no additional local taxes, ensuring a uniform rate across the state.
How do you calculate Massachusetts sales tax?
Multiply the taxable amount by the 6.25% statewide rate. Certain exemptions, such as for groceries or clothing under $175, must be accounted for.
Sales Tax Nexus in Massachusetts
Sales tax nexus in Massachusetts establishes a business's obligation to collect and remit sales tax, triggered by physical presence, economic activity, or relationships with in-state entities.
Type of Nexus | Description | Threshold/Criteria |
|---|---|---|
Physical Nexus | Created by having a physical presence in Massachusetts, such as a location, employees, or inventory. | Office, warehouse, storefront, or employees operating in Massachusetts. |
Economic Nexus | Triggered by making substantial sales into Massachusetts, even without a physical presence. | More than $100,000 in gross sales annually in Massachusetts. |
Affiliate Nexus | Created through relationships with in-state businesses that help facilitate sales. | A Massachusetts-based affiliate promotes or sells products for the out-of-state retailer. |
Marketplace Nexus | Applies to sales made through marketplace facilitators operating in Massachusetts. | Facilitators must collect and remit sales tax on behalf of sellers. |
Inventory Nexus | Triggered by storing inventory in Massachusetts, even if through a third party (e.g., warehouses). | Any physical inventory located in Massachusetts. |
Employee or Agent Nexus | Having employees, independent contractors, or agents perform services in Massachusetts. | Sales or service activities conducted by representatives in Massachusetts. |
Notes
Massachusetts uses both physical presence and economic presence to determine sales tax nexus.
Businesses with nexus in Massachusetts must register for a sales tax permit and collect sales tax on taxable sales.
Marketplace facilitators are responsible for collecting and remitting sales tax for third-party sales made through their platforms.
FAQs
What is the sales tax nexus in Massachusetts?
Sales tax nexus in Massachusetts is established through physical presence or economic nexus, triggered by exceeding $100,000 in annual sales into the state.
Massachusetts Sales Tax Exemptions in 2025
In 2025, Massachusetts maintains its 6.25% state sales tax, with exemptions for groceries, prescription medications, and clothing priced under $175.
What is a Massachusetts state tax-exempt certificate?
A Massachusetts state tax-exempt certificate, also known as Form ST-2, is a document that allows eligible buyers to make tax-exempt purchases in Massachusetts. It certifies that the buyer qualifies for an exemption under Massachusetts sales tax law.
Purpose: Used for transactions exempt from sales tax, such as purchases by government agencies, nonprofit organizations, or for resale purposes.
Usage: The buyer provides the certificate to the seller at the time of purchase to avoid paying sales tax.
Retention: Sellers must keep a copy of the certificate on file to validate tax-exempt transactions in case of an audit.
Valid Reasons for Exemption
Exemption Category | Description | Examples |
|---|---|---|
Resale | Items purchased for resale. | Products bought by retailers for inventory. |
Manufacturing | Materials or equipment used directly in production. | Raw materials, machinery for manufacturing. |
Nonprofit Organizations | Tax-exempt entities making qualified purchases. | Purchases by charitable or educational organizations. |
Government Agencies | Federal, state, or local government entities. | Office supplies or equipment bought by government offices. |
Agricultural Use | Equipment and supplies used exclusively in farming. | Tractors, fertilizers, and feed. |
What is exempt from sales tax in Massachusetts?
Over 65% of Massachusetts businesses emphasize tax exemptions as a critical part of their financial planning. This table outlines key sales tax exemptions in Massachusetts to support compliance:
Category | Exempt Items |
|---|---|
Essential Goods | Food for home consumption, prescription medications, and durable medical equipment. |
Nonprofit Organizations | Purchases by qualifying charitable, religious, and educational organizations. |
Government Entities | Transactions made by federal, state, and local government agencies. |
Resale | Items purchased for resale with a valid resale certificate. |
Manufacturing | Machinery and equipment used directly in manufacturing or production. |
Agricultural Products | Seeds, fertilizers, and equipment used in agricultural production. |
Educational Materials | Textbooks, school supplies, and educational equipment used by schools and universities. |
Occasional Sales | Casual or isolated sales by individuals not engaged in regular business activities. |
Additional Notes
Massachusetts does not tax clothing purchases under $175. For amounts exceeding $175, only the excess is subject to sales tax.
Exemptions for manufacturing and agricultural items often require proper documentation, such as exemption certificates.
CQ For more details on Massachusetts sales tax exemptions, read Kintsugi's guide: Sales Tax Exemption Massachusetts: A 2025 Guide for Businesses to Save More.
Massachusetts Sales Tax Permits, Registration, and Filing in 2025
This section simplifies obtaining permits, filing returns, and meeting payment deadlines effectively for businesses with buyers in Massachusetts.
How do I get a Massachusetts sales tax permit?
To obtain a sales tax permit in Massachusetts, follow these steps:
Register Online: Visit the MassTaxConnect Portal. to start your registration for a sales tax permit.
Provide Business Details: Submit information such as your business name, address, type of business entity, and federal EIN or Social Security number.
Pay the Registration Fee: Massachusetts does not charge a fee for obtaining a sales tax permit.
Receive Your Permit: Once approved, you'll receive a Massachusetts Sales and Use Tax Registration Certificate, which allows you to collect and remit sales tax.
Note: Massachusetts requires businesses with physical or economic nexus to register for a sales tax permit before collecting sales tax.
How do I submit a Massachusetts sales tax registration?
To register for Massachusetts sales tax, follow these steps. Massachusetts also offers customer support for registration through the Massachusetts Department of Revenue (DOR) at (617) 887-6367.
Determine if You Need to Register
You must register for Massachusetts sales tax if your business:
Has a physical presence (nexus) in Massachusetts (e.g., office, warehouse, employees).
Meets economic nexus thresholds by making over $100,000 in sales into Massachusetts during the current or previous calendar year.
Gather Required Information
Before starting, ensure you have:
Business Information: Legal name, DBA (if applicable), federal EIN or SSN.
Address Details: Physical and mailing addresses.
Business Type: LLC, sole proprietorship, corporation, etc.
Sales Estimates: Estimated taxable sales in Massachusetts.
Bank Account Information: For filing and payment setup.
Register Online
Visit the Massachusetts Department of Revenue website.
Create an account or log in to the MassTaxConnect portal.
Select Register a New Business and follow the prompts to complete your sales tax registration.
Submit Application
Review the form for accuracy before submitting.
Once approved, you will receive a Massachusetts Sales and Use Tax Registration Certificate, which allows you to collect and remit sales tax.
Begin Collecting and Filing Sales Tax
Start collecting Massachusetts sales tax on taxable transactions.
File and remit collected sales tax through the MassTaxConnect portal based on your assigned filing frequency (monthly, quarterly, or annually).
Massachusetts Sales Tax Filing
This section breaks down Massachusetts' sales tax requirements, including filing rules, taxable items, and permits.
What are the main Massachusetts filing requirements?
Massachusetts sales tax filing requirements depend on the size and frequency of taxable sales, as well as applicable legislation governing these obligations:
Filing Frequency: Businesses must file monthly, quarterly, or annually based on their total sales tax liability.
Due Date: Returns are due on the 20th of the month following the reporting period.
Filing Method: Returns must be filed electronically through the MassTaxConnect portal.
Additional Requirements: Businesses must report all taxable and exempt sales and remit payment for collected taxes by the due date to avoid penalties and interest.
Filing Frequency Criteria
Filing Frequency | Criteria |
|---|---|
Monthly | For businesses collecting more than $100 in sales tax per month. |
Quarterly | For businesses collecting less than $100 in sales tax per month but more than $100 per quarter. |
Annually | For businesses collecting $100 or less in sales tax per quarter. |
Note: Massachusetts mandates electronic filing and payment for most businesses. Retailers must report local sales taxes in addition to the 6.25% state sales tax. Accurate tracking of taxable and exempt sales is required.
What does Massachusetts sales tax apply to?
Massachusetts sales tax applies to the following categories, with certain exemptions such as for groceries, prescription medications, and clothing under $175.
Category | Description | Examples |
|---|---|---|
Tangible Personal Property | Most goods, unless exempt. | Furniture, electronics, clothing (over $175 taxable). |
Taxable Services | Certain services are subject to sales tax. | Telecommunications, software maintenance agreements. |
Digital Goods | Digital products transferred electronically. | Prewritten software, e-books, digital media. |
Leases and Rentals | Rentals of equipment and property. | Equipment rentals, car rentals. |
Prepared Foods | Meals and drinks sold by food service businesses. | Restaurant meals, takeout, catering. |
Note: Massachusetts imposes a 6.25% statewide sales tax, with no additional local taxes. Businesses must ensure compliance with state-specific exemptions and accurately report taxable and exempt sales.
CQ For more details on product categories where Massachusetts sales tax applies, read Kintsugi's guide: What Items Are Subject to Sales Tax in Massachusetts for eCommerce in 2025?.
How to file sales tax in Massachusetts
To file sales tax in Massachusetts, follow these steps:
Log in to MassTaxConnect: Access the MassTaxConnect portal using your credentials.
Complete the Sales Tax Return: Enter total taxable sales, exempt sales, and any applicable use tax amounts on your sales tax returns.
Calculate Tax Due: MassTaxConnect automatically calculates the sales tax owed based on your entries.
Submit Payment: Pay electronically through the portal or by other approved methods.
Meet Deadlines: Returns are due by the 20th of the month following the reporting period (monthly, quarterly, or annually, depending on your assigned frequency).
Maintain Records: Keep copies of filed returns and payment confirmations for audit purposes.
FAQs
What day is Massachusetts sales tax due?
Massachusetts sales tax is due on the 20th of the month following the reporting period for monthly or quarterly filers, or January 20th for annual filers.
Does Massachusetts have a sales tax holiday?
Yes, Massachusetts offers a sales tax holiday weekend annually in August, exempting many retail items priced under $2,500 from sales tax.
Automate Your Massachusetts Sales Tax with Kintsugi
Managing Massachusetts sales tax compliance can be complex, from verifying local tax rates to tracking exemptions and meeting filing deadlines. Kintsugi simplifies this process with powerful automation tools designed for modern businesses.
Feature | Description |
|---|---|
Accurate Tax Rate Calculations | Automatically apply the correct state and local sales tax rates based on your customer’s location. |
Exemption Management | Seamlessly identify and apply exemptions for groceries, prescription medications, and other qualifying items. |
Effortless Filing | Streamline your tax reporting and filing process with integrations that calculate, track, and submit sales tax payments. |
ERP and eCommerce Integration | Connect with platforms like Shopify, QuickBooks, Amazon, and more for seamless tax data management. |
Let Kintsugi handle the complexities of Massachusetts sales tax so you can focus on growing your business. Visit our Product Platform and Pricing pages to learn more and get started today!
