These items allow the website to remember choices you make and provide enhanced, more personal features. For example, a website may provide you with local weather reports or traffic news by storing data about your current location. MTF examines the sales tax from both a budgetary and fiscal perspective, as well as the impact that our sales tax policies have on our competitive standing among the states that impose a sales tax. These rankings show how the Massachusetts sales tax compares to the other 49 states + DC. The state with the highest sales tax is ranked 1st, and states with the same sales tax have a tie rank.
massachusetts state income tax hasdetailed information as to the taxability of software and related issues. Broadly taxes prewritten computer software, regardless of the method of delivery. Conversely, the sale of custom software is viewed as purchasing the professional service of the programmer and generally exempt in Massachusetts. Use the sales tax formula below, or the handy calculator at the top of the page, to get the tax detail you need. To calculate the right sales tax in Massachusetts you’ll need to add up the state, county and city rates for your location. The easiest way to do this is by downloading our lookup tool to get the detail you need in seconds.
for Tax-Exempt Items & Sales
A 6.25% state meals tax is applied to restaurant and take-out meals. To find out more about holiday events in Massachusetts, check out our Holidays section. US Mastercard Zero Liability does not apply to commercial accounts . Conditions and exceptions apply – see your Cardholder Agreement for details about reporting lost or stolen cards and liability for unauthorized transactions.
- During these days of the year, you aren’t required to charge sales tax, and buyers will expect to not be charged.
- After you register with DOR, you will receive a Sales and Use Tax Registration Certificate (Form ST-1) for each business location.
- Massachusetts sales tax returns are due on the 20th day of the month following the reporting period.
- Massachusetts celebrates the following national, state and local holidays.
- You can claim the smaller of 15% of the net expenditure for the renewable energy source property or up to $1,000.
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 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. “Goods” refers to the sale of tangible personal property, which are generally taxable. “Services” refers to the sale of labor or a non-tangible benefit. Massachusetts has a statewide sales tax rate of 6.25%, which has been in place since 1966. The Department has published several guides, which provide more specific information detailing the sales tax compliance requirements for certain industries and types of contractors.
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Massachusetts cities and/or municipalities don’t have a city sales tax. Many audits begin with a call out of the blue from a Massachusetts Department of Revenue’s sales tax auditor. Shortly after the call, your business will receive an audit notice which confirms that you were lucky enough to be chosen for a Massachusetts sale and use tax audit. To prepare for the audit, it is likely a good idea to start by getting a state and local tax professional involved.
If the filing due date falls on a weekend or holiday, sales tax is generally due the next business day. There is no charge to register for a sales tax permit in Massachusetts. Contact each state’s individual department of revenue for more about their requirements for registering your business. If you have nexus in Massachusetts, the next step is to determine whether the products or services you sell are subject to Massachusetts sales and use tax.