Massachusetts Sales Tax

The current state sales tax rate in Massachusetts (MA) is 6.25 percent. A sales tax is a fee levied on the sale of certain products and services that is paid to a governing body (state or local). Sales tax was first imposed in the United States in 1921, but it can be traced all the way back to ancient Egypt, where paintings illustrate the collecting of taxes on goods. In 1966, Massachusetts became the first state to enact a broad state transaction privilege tax. The rate has grown to 6.25 percent since then. When you sell taxable products or services, you function as an agent of the state of Massachusetts by collecting transaction privilege tax from customers and remitting it to the Massachusetts Department of Revenue. This is a crucial aspect that should be emphasized. The Department of Revenue owns any transaction privilege tax collected from residents. It is your obligation as a business owner to manage the transaction privilege tax you collect in order to comply with state rules and avoid penalties and interest.

Sales Tax Rates in Massachusetts by County

In Massachusetts, when do you have to charge sales tax?

If your business has a sales tax nexus in Massachusetts, you must charge sales tax. In different states, the term “sales tax nexus” signifies different things. It could be having a physical site (e.g., a brick and mortar business) or having someone working for you in the state. It can also refer to having a ‘affiliate’ or ‘click through’ sales tax nexus in the case of ecommerce.

Check the Massachusetts government’s sales tax website to see if you should be charging sales tax in your state.

In Massachusetts, which items are exempt from sales tax?

Prescription medications, for example, are free from sales tax in Massachusetts. There are also Massachusetts sales tax exemptions that can be used if the seller or buyer meets specific requirements.

Check the Massachusetts government’s tax website for a complete list of exemptions.

What is Massachusetts known for?

Massachusetts is known for:

• The landing place of the Mayflower and the Pilgrims
• Stunning fall foliage
• Colonial landmarks
• Harvard University
• The nation’s first library

Massachusetts Fun Facts

• British colonist John Smith named Massachusetts for the Massachusett tribe. The name “Massachusetts” meant “near the great hill.”
• The first lighthouse in the United States was built on Little Brewster Island in the Boston Harbor in 1716.
• Basketball was invented in December 1891 by James Naismith in Springfield.
• Volleyball was invented in 1895 by William Morgan in Holyoke. Volleyball was originally called “Mintonette.”
• Boston Common, established in 1634, is the first public park in the United States.
• The Boston subway, which opened on September 1, 1897, is the first subway system in the United States.
• Boston Public Library is the second largest public library in the United States. Harvard University Library, also in Boston, is the third largest library in the United States.
• The first telephone call in history was made between inventor Alexander Graham Bell and his assistant, Thomas Watson, on March 10, 1876, in Boston. Bell spoke the words, “Mr. Watson, come here, I want to see you” and Watson heard it from the receiver in the next room.
• Boston Latin School, founded in 1635, is the first public school in the United States. It is also the oldest existing school in the United States.
• In 2003, Massachusetts became the first stage to legalize same-sex marriage.
• In Massachusetts, it is illegal to give alcoholic beverages to a hospital patient, unless directed by a physician.
• The first printed book in the United States was the Bay Psalm Book, first printed in 1640 in Cambridge, Massachusetts.

Tourist Attractions in Massachusetts

• Boston Common: Park in Boston, Massachusetts.
• Faneuil Hall: Shopping mall in Boston, Massachusetts.
• Freedom Trail: 2.5-mile-long path through downtown Boston, Massachusetts, that passes by 16 locations of historical significance.
• Harvard Square: City center in Cambridge, Massachusetts.
• Institute of Contemporary Art Boston: Art museum in Boston, Massachusetts.
• Isabella Stewart Gardner Museum: Museum of international art in Boston, Massachusetts.
• Jiminy Peak: Ski resort in Hancock, Massachusetts.
• Martha’s Vineyard: Island located south of Cape Cod in Massachusetts.
• Museum of Fine Arts Boston: Art museum in Boston, Massachusetts.
• Museum of Science: Science museum in Boston, Massachusetts.
• Naismith Memorial Basketball Hall of Fame: Basketball hall of fame museum in Springfield, Massachusetts.
• New England Aquarium: Aquarium in Boston, Massachusetts.
• Peabody Essex Museum: Art museum in Salem, Massachusetts.
• Six Flags New England: Amusement park in Agawam, Massachusetts.
• Tanglewood: Music center in Lenox, Massachusetts.
• USS Constitution: Historic battleship in Charlestown, Massachusetts.
• Wachusett Mountain: Ski resort in Princeton, Massachusetts.