Massachusetts Sales Tax Guide 2025: A Step-by-Step Guide for Businesses

Massachusetts Sales Tax: 2025 Overview

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.

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.

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.

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.

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 (DOR) 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.

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!