MA Massachusetts State sales tax rates

STATEWIDE SALES TAX RATE

6.25%

ECONOMIC SALES THRESHOLD

$100,000

TRANSACTIONS THRESHOLD

Do you need to collect sales tax in Massachusetts?

You’ll need to collect sales tax in Massachusetts if you have nexus there. There are two ways that sellers can be tied to a state when it comes to nexus: physical or economic. Physical nexus means having enough tangible presence or activity in a state to merit paying sales tax in that state. Economic nexus means passing a states’ economic threshold for total revenue or the number of transactions in that state.

Do you have physical nexus in Massachusetts?

Massachusetts considers a seller to have physical nexus if you have any of the following in the state:

An office, place of business, or any owned property
An employee present in the commonwealth for more than 2 days per year
Goods in a warehouse
Ownership of real or personal property
A sample or display area, such as a trade show exhibit
Delivery of property or performance of service in Massachusetts

Do you have economic nexus in Massachusetts?

Effective October 1, 2019, Massachusetts considers vendors who make more than $100,000 in sales in the state over the preceding calendar year to have economic nexus. This means the state considers these vendors obligated to collect sales tax from buyers in the state.

Is what you’re selling taxable?

Services in Massachusetts are generally not taxable. However — if the service you provide includes creating or manufacturing a product, you may have to deal with the sales tax on products.

Tangible personal property is taxable in Massachusetts, with a few exceptions. These exceptions include clothing costing less than $175, most non-restaurant food and groceries, several health care and sanitation items, prescribed medical devices, and periodicals.

Collecting Sales Tax

Massachusetts doesn’t have local sales tax rates, only a statewide tax rate of 6.25%. So you would simply charge the state sales tax rate of 6.25% to buyers in Massachusetts.

This is true whether you are based in Massachusetts or whether you are based in another state and have sales tax nexus in Massachusetts.

Should you collect sales tax on shipping charges in Massachusetts?

Shipping is generally not taxable in Massachusetts as long as you separate shipping charges on a separate line item in the invoice or sale to your customer.

When are Returns Due?

When you file and pay Massachusetts sales tax depends on two things: your assigned filing frequency and your state’s due dates.

How often will you file sales tax returns in Massachusetts?

States assign you a filing frequency when you register for your sales tax permit. In most states, how often you file sales tax is based on the amount of sales tax you collect from buyers in the state.

In Massachusetts, you will be required to file and remit sales tax either monthly, quarterly, or annually.

Massachusetts sales tax returns are always due the 30th of the month following the reporting period. If the filing due date falls on a weekend or holiday, sales tax is generally due the next business day.