FAQ

What Items Are Subject To Sales Tax In Massachusetts? (Solved)

Goods that are subject to sales tax in Massachusetts include physical property, like furniture, home appliances, and motor vehicles. Prescription medicine, groceries, gasoline, and clothing are all tax-exempt. Some services in Massachusetts are subject to sales tax.

  • Sales tax. The Massachusetts sales tax is 6.25% of the sales price or rental charge of tangible personal property (including gas, electricity, and steam) or certain telecommunications services 1 sold or rented in Massachusetts. The buyer pays the sales tax, as an addition to the purchase price, to the vendor at the time of purchase.

What is subject to sales tax in Massachusetts?

Sales tax. The Massachusetts sales tax is 6.25% of the sales price or rental charge of tangible personal property (including gas, electricity, and steam) or certain telecommunications services1 sold or rented in Massachusetts.

What items does sales tax apply to?

What Are You Selling? Classification of your product or service is the first key item to consider when determining if a sale is taxable or exempt. Sales of tangible personal property (personal property that can be picked up and moved) are typically subject to sales tax unless specifically exempted.

What items are exempt from sales tax?

Some items are exempt from sales and use tax, including:

  • Sales of certain food products for human consumption (many groceries)
  • Sales to the U.S. Government.
  • Sales of prescription medicine and certain medical devices.
  • Sales of items paid for with food stamps.

What is exempt from sales tax in Massachusetts?

Goods that are subject to sales tax in Massachusetts include physical property, like furniture, home appliances, and motor vehicles. Prescription medicine, groceries, gasoline, and clothing are all tax-exempt.

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What is subject to use tax?

What Is Use Tax? Use tax is a sales tax on purchases made outside one’s state of residence for taxable items that will be used, stored or consumed in one’s state of residence and on which no tax was collected in the state of purchase.

Are laundromats subject to sales tax?

Avoid Tax Pyramiding: Owners of laundromats pay sales taxes on other components of their business and roll those added costs into the vending fee for its laundry customers. When commercial laundry equipment is purchased and utilities are paid, those have all been subject to a sales tax fee.

What things are not taxable?

What’s not taxable

  • Inheritances, gifts and bequests.
  • Cash rebates on items you purchase from a retailer, manufacturer or dealer.
  • Alimony payments (for divorce decrees finalized after 2018)
  • Child support payments.
  • Most healthcare benefits.
  • Money that is reimbursed from qualifying adoptions.
  • Welfare payments.

What are exempt sales?

A sales tax exemption releases a business or organization from having to pay state or local sales tax on at least some of the items that it purchases. Retail businesses generally do not have to pay sales tax when buying wholesale goods that will be resold to an end user.

Is there tax on shoes in MA?

In Massachusetts there is no sales tax on clothing (and shoes) that costs less than $175. It it costs more than $175, you pay 6.25% on the amount over 175. Electronics and other non-edible items are taxked at 6.25%.

Is toilet paper taxable in Massachusetts?

Among other products, New Jersey exempts toilet paper, diapers, acne cream, and even medicated lip balm from its sales tax. Massachusetts exempts “health care items ” including tampons, diapers, and hearing aids.

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Does Massachusetts have sales tax on groceries?

Massachusetts imposes a sales tax on meals sold by or bought from restaurants or any restaurant part of a store. Generally, food products people commonly think of as groceries are exempt from the sales tax, except if they’re sold as a meal from a restaurant part of a store.

Does Ma charge sales tax on clothing?

Clothing and footwear priced $175 or less per item/pair are generally exempt from Massachusetts sales tax use tax. Sales tax applies to any individual clothing item or pair of shoes priced above $175.

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