Guide to Sales Tax in Massachusetts in 2025

Whether you’ve fully set up shop in Massachusetts, or simply ship there once in a while, it’s important you know whether your business is liable to their sales taxes. In our 10+ years of experience helping online businesses comply with taxes, we’ve found that tax policies are confusing. So we translated all the information from the Massachusetts Department of Revenue’s official sales tax law into language that’s easy to understand.

This guide will tell you everything you need to know, plus direct you to the right places for handling any sales tax responsibility you may have.

What’s taxable in Massachusetts?

In Massachusetts, most types of goods where a physical product is transferred are taxable. Below is an overview of products that are generally taxable in Massachusetts. Some local cities or districts might have their own rules or exceptions, however. For example, check out the Boston sales tax guide for specific rules in the MA state capital.

• Tangible personal property: These are physical items. Massachusetts taxes most tangible products.
• Home appliances
• Leases and rentals of tangible personal property
• Software as a Service (SaaS)

To be absolutely clear about which products are subject to sales tax, and which are exempt, check the Massachusetts Department of Revenue website.

What are non-taxable items in Massachusetts?

Massachusetts has several sales tax exemptions. Here are a few examples of non-taxable items that you don’t need to charge MA sales tax on:

• Services, unless specifically taxed
• Food for human consumption (except meals sold by a restaurant)
• Clothing less than $175
• Agricultural machinery, equipment, and materials
• Prescription drugs

Massachusetts also exempts certain types of organizations from Massachusetts sales taxes, such as government agencies, some nonprofit organizations, and merchants purchasing goods for resale, via exemption certificates.

Do you have sales tax nexus in Massachusetts?

The word “nexus” refers to a commercial connection in the state. Nexus determines the following questions for a state tax agency: Do you do business here, what kind, and how much? And when you do have nexus, that means you’re obligated to collect tax on your sales there. So the first question for you to answer is whether you have nexus in Massachusetts.

Massachusetts physical nexus

| Nexus Trigger | Description | |-----------------------------------------------------|--------------------------------------------------------------------------------------------------------------| | Physical Presence | Includes having a store, office, warehouse, distribution center, storage space, employee, or representative in Massachusetts. | | Business Location | Having a business location in Massachusetts. | | Delivery or Service Engagement | Regularly engaged in the delivery of property or the performance of services within Massachusetts. | | Owning or Leasing Real Property | Owning or leasing real property within Massachusetts. | | Employees | Having one or more employees located within Massachusetts. | | Stock of Tangible Personal Property | Regularly maintaining a stock of tangible personal property within Massachusetts for sale in the ordinary course of business. | | Leasing Tangible Personal Property | Regularly leases out tangible personal property for use within Massachusetts. | | Online Ads or Click-Through Nexus | Utilizing online advertisements or links on a Massachusetts-based website that channel potential customers or new business. |

Massachusetts economic nexus

• A significant amount of sales in Massachusetts within twelve months. This is called an economic nexus, a sales tax nexus determined by economic activity, i.e., the amount of sales you make in a particular state, not including sales through a marketplace.
• The threshold in Massachusetts is $100,000 in annual sales.
• A remote seller’s sales through a marketplace are not counted towards the threshold.
• If this threshold is reached during the year, the seller must begin collecting on the 1st of the month that is two months after the threshold is reached.

To learn more about how this works, check out the Ultimate Guide to US Economic Nexus.

Sales tax rate in Massachusetts

The base Massachusetts state sales tax is 6.25%. Massachusetts does not levy local sales tax, so the total sales tax rate a customer will pay will remain consistent across the state.

Check out Quaderno’s Sales Tax Calculator to see your product’s tax rate, amount, and final price in Massachusetts. For more information on Massachusetts rates, see: Massachusetts Sales and Use Tax for Business.

How to calculate sales tax in Massachusetts

Massachusetts has a destination-based sales tax system, so you have to pay attention to the varying tax rates across the state. Charge the tax rate of the buyer’s address, as that’s the destination of your product or service. Add it to the price of your product, and collect the full payment.

How does Massachusetts sales tax work with marketplaces?

Marketplaces in Massachusetts are required to collect, report, and pay the tax on sales via their marketplaces. Marketplace sellers are, therefore, not required to pay taxes on what they sell through a marketplace. For more information, see Remote Seller and Marketplace Facilitator FAQs – Massachusetts.

Sales tax on shipping charges in Massachusetts

Massachusetts doesn’t apply sales tax to any shipping costs, as long as the shipping costs are clearly listed and separated from the price of the item(s) you’re selling. Be sure to always mark the cost of the product and the cost of the shipping on two different lines of the bill.

Sales tax holidays

Massachusetts recognizes an annual sales tax holiday in August for all retail items up to $2,500 purchased for personal use. Check the Massachusetts Sales Tax Holiday FAQ for current sales tax holidays and specific details.

How to register for sales tax permit in Massachusetts

Remote sellers register for a sales tax license in Massachusetts via MassTaxConnect, an online tax portal. (This portal is also where you’ll file and pay your tax returns. For information on how to file, check out this Massachusetts sales tax filing guide.)

Be prepared to share the following information:

• Your social security number or visa number
• Your date of birth
• Your driver license number, state ID number, or other ID (e.g., passport, military ID)
• Names and location of banks where you have an account
• Names and addresses of suppliers
• Your Employer Identification Number (EIN)
• Expected average monthly sales and the amount of those sales which are taxable
• Your email address
• If you’ve purchased an existing business, you must also provide the previous permit information

Keep in mind that throughout the registration process, your business is considered a “remote retailer.” Now let’s get started!

10 steps to apply for MA sales tax permit

1. Go to the MassTaxConnect new business registration site. Proceed until you see the first question: Reason for Registration. You must choose an answer from a dropdown menu on the right side of the screen, underlined in red. This is the case for most questions throughout the registration form.
2. Provide standard personal information, as well as more business details. When it’s time to provide your business’ legal address, you must verify it by clicking the button below.
3. Do you want to make your Massachusetts sales tax payments online? You probably do! The next question asks you for banking information to set up future electronic payments. This step is optional. You can also add other electronic payment options at a later date.
4. When asked what account type you’d like to register, simply select Sales Tax and click Next.
5. You need to identify which industry you’re working in by providing its North American Industry Classification System (NAICS) number. Each number is a 2-6 digit code. The form provides a search function directly on the page! Follow the directions and helpful links, if you need them.
6. At two different points, you will be asked about the “date you are first required to collect Massachusetts taxes.” Enter the date of your first taxable sale in the state, or the date you surpassed the economic nexus threshold.
7. Then follows a series of questions about your industry and the products you sell. These are simple Yes or No questions, and you can click on whichever answer fits your business.
8. After a few more questions about your business type, you’ll need to estimate your annual sales tax in Massachusetts. This is the amount you’ll charge and collect from transactions.
9. Last but not least, you’ll create the login credentials for your own MassTaxConnect profile. This is how you’ll enter the portal in the future to file returns and make payments.
10. Submit!

Once you submit your request, you’ll receive an email with an authentication code. Use this code to log in to MassTaxConnect for the first time.

Once reviewed and approved, you should receive a sales tax permit. When you do, you’ll also be assigned a filing frequency: monthly, quarterly, or yearly.

Sales tax guides for other states

• Alabama Sales Tax Guide
• Alaska Sales Tax Guide
• Arizona Sales Tax Guide
• Arkansas Sales Tax Guide
• California Sales Tax Guide
• Colorado Sales Tax Guide
• Connecticut Sales Tax Guide
• Delaware Sales Tax Guide
• Florida Sales Tax Guide
• Georgia Sales Tax Guide
• Hawaii Sales Tax Guide
• Idaho Sales Tax Guide
• Illinois Sales Tax Guide
• Indiana Sales Tax Guide
• Iowa Sales Tax Guide
• Kansas Sales Tax Guide
• Kentucky Sales Tax Guide
• Louisiana Sales Tax Guide
• Maine Sales Tax Guide
• Maryland Sales Tax Guide
• Michigan Sales Tax Guide
• Minnesota Sales Tax Guide
• Mississippi Sales Tax Guide
• Missouri Sales Tax Guide
• Montana Sales Tax Guide
• Nebraska Sales Tax Guide
• Nevada Sales Tax Guide
• New Hampshire Sales Tax Guide
• New Jersey Sales Tax Guide
• New Mexico Sales Tax Guide
• New York Sales Tax Guide
• North Carolina Sales Tax Guide
• North Dakota Sales Tax Guide
• Ohio Sales Tax Guide
• Oklahoma Sales Tax Guide
• Oregon Sales Tax Guide
• Pennsylvania Sales Tax Guide
• Rhode Island Sales Tax Guide
• South Carolina Sales Tax Guide
• South Dakota Sales Tax Guide
• Tennessee Sales Tax Guide
• Texas Sales Tax Guide
• Utah Sales Tax Guide
• Vermont Sales Tax Guide
• Virginia Sales Tax Guide
• Washington Sales Tax Guide
• Washington, D.C. Sales Tax Guide
• West Virginia Sales Tax Guide
• Wisconsin Sales Tax Guide
• Wyoming Sales Tax Guide