Use tax is a 6.25% tax paid on out-of-state or out-of-country purchases that are used, stored or consumed in Massachusetts and on which no Massachusetts sales tax (or less than 6.25%) was paid. Unlike the 6.25% sales tax, which is collected by sellers, use tax is generally paid directly to the state by the purchaser.
Does Massachusetts charge sales tax on online purchases?
Sales tax is generally collected by the seller. The Massachusetts use tax is 6.25% of the sales price or rental charge on tangible personal property, including property purchased by phone, mail order, and online where sales tax was not collected or was paid at a lower tax rate.
What gets taxed in Massachusetts?
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.
Do you pay sales tax on clothing in Massachusetts?
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.
Are there any sales tax exemptions in Massachusetts?
What purchases are exempt from the Massachusetts sales tax? While the Massachusetts sales tax of 6.25% applies to most transactions, there are certain items that may be exempt from taxation. This page discusses various sales tax exemptions in Massachusetts.
How does the buyer pay sales tax in Massachusetts?
The buyer pays the sales tax, as an addition to the purchase price, to the vendor at the time of purchase. The vendor then sends the tax to Massachusetts. For motor vehicle and trailer sales, however, the buyer pays the sales tax directly to Massachusetts. Visit Sales and Use Tax on Motor Vehicles for more detailed information.
How is Massachusetts sales tax different from other states?
Each state gives credit to purchasers for sales tax paid to the other state. If a sales tax rate of less than 6.25% is paid to the other state, the Massachusetts use tax is the difference between the 2 states’ sales tax rates.
