Massachusetts Sales Tax: Rates, Nexus, Exemptions, and Filing Requirements Explained

• Massachusetts has a statewide sales and use tax rate of 6.25% with no local sales taxes.
• Tax applies to tangible personal property and certain services; examples include clothing over $175, prewritten software, books, SaaS, and telecom services.
• Nexus for tax collection is established by physical presence or over $100,000 in sales into Massachusetts (economic nexus).
• Exemptions include most services, food, clothing under $175, prescription drugs, agricultural items, certain nonprofits, resellers, manufacturers, and government agencies.
• Exemptions require an exemption certificate; filing and remittance can be done electronically or by paper, with advance payments required for high-liability taxpayers.

Source: sovos.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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