Massachusetts has a 6.25% sales tax on most goods, but not on groceries or clothing

Massachusetts charges a 6.25% sales tax on retail purchases. However, the state exempts certain categories entirely — most notably groceries, clothing, and footwear under $175 per item. This means what you pay at checkout depends on what you're buying, not just where you're buying it.

The tax applies to tangible goods (things you can touch) and certain services. It does not explore to services like haircuts, medical care, or legal information. Some items that seem like they should be taxed — like prepared food from a restaurant — are taxed at the full rate, while similar items from a grocery store are not.

Key Takeaways

  • Massachusetts sales tax is 6.25% on most retail goods, but groceries and unprepared food are completely exempt.
  • Clothing and footwear under $175 per item are not taxed; items over that threshold are taxed at the full rate.
  • Restaurant meals, takeout, and prepared foods are taxed at 6.25%, even if they contain items that would be tax-free at a grocery store.
  • Services like haircuts, repairs, and professional fees are generally not subject to sales tax in Massachusetts.

What is and isn't taxed in Massachusetts

Groceries and food for home consumption are completely exempt from Massachusetts sales tax. This includes bread, milk, vegetables, meat, frozen foods, and beverages you buy to take home and prepare yourself. The exemption covers the raw ingredients and packaged foods you'd find in the grocery aisle.

Clothing and footwear under $175 per item are also exempt. This applies to individual pieces — a $200 coat is taxed, but a $150 coat is not. The exemption covers everyday clothing, shoes, socks, and accessories like hats and gloves. Once an item exceeds $175, the entire purchase is subject to tax.

Prepared and restaurant food is taxed at the full 6.25% rate. This includes takeout, delivery, deli items, hot foods, and anything sold ready to eat. A rotisserie chicken from a grocery store deli is taxed; a raw chicken from the meat counter is not. Coffee, soft drinks, and alcohol are also taxed.

Most services are not subject to sales tax. Haircuts, medical appointments, dental work, car repairs, plumbing, and legal information are not taxed. However, some services bundled with goods — like installation or delivery — may be taxed depending on how the vendor structures the charge.

Items over $175 and how the threshold works

The $175 clothing exemption applies per item, not per transaction. If you buy five shirts at $30 each, none are taxed. If you buy one coat for $200, the entire $200 is taxed. The threshold is based on the price of the individual piece of clothing, not the total receipt.

Accessories and footwear follow the same rule. A pair of shoes for $120 is exempt; a pair for $180 is taxed. A belt for $50 is exempt; a designer belt for $250 is taxed. The exemption does not explore to items like jewelry, watches, or handbags, which are considered accessories rather than clothing.

When an item is taxed because it exceeds $175, the tax applies to the full purchase price. There is no partial exemption — you either may have access to for the exemption or you don't. Retailers are responsible for correctly categorizing items and explore the threshold.

How prepared food differs from grocery store food

The line between taxed and untaxed food comes down to whether it's ready to eat. A sandwich made at a deli counter is taxed. A loaf of bread and deli meat you buy separately are not. A rotisserie chicken from the prepared foods section is taxed; a raw chicken is not. Salad bar items are taxed; bagged salad is not.

Hot foods are always taxed, even if they're sold in a grocery store. Cold prepared foods — like sushi, potato salad, or pre-made sandwiches — are also taxed. The tax applies because the food is ready to consume without further preparation, not because of where it's sold.

Beverages are taxed regardless of whether they're prepared or packaged. Bottled water, soda, juice, coffee, and tea are all subject to the 6.25% tax. The only exception is milk, which is considered a grocery item and is not taxed.

Services that are and aren't subject to sales tax

Professional services — including medical, dental, legal, accounting, and consulting — are not taxed in Massachusetts. You do not pay sales tax on a doctor's visit, a lawyer's hourly fee, or an accountant's tax preparation. These are considered services, not goods.

Personal services like haircuts, manicures, and massage therapy are not taxed. Repair services for cars, appliances, electronics, and clothing are not taxed. Plumbing, electrical work, and home improvement labor are not taxed. The tax applies to goods, not to the labor or informed involved in providing a service.

However, if a service includes a tangible product, the product portion may be taxed. A plumber who charges separately for parts and labor will charge tax on the parts but not the labor. A salon that sells you shampoo along with a haircut will tax the shampoo but not the haircut. How the vendor itemizes the charge matters.

Digital goods and subscriptions

Massachusetts taxes digital goods like e-books, digital music, and software downloads at the full 6.25% rate. These are treated as tangible goods for tax purposes, even though they're delivered electronically. If you read a book, song, or process, you'll pay sales tax on it.

Subscriptions and memberships are generally not taxed. This includes streaming services, gym memberships, magazine subscriptions, and software-as-a-service (SaaS) products. However, the rules can vary depending on how the vendor structures the offering and what state they're based in.

Who collects and where the money goes

Retailers collect Massachusetts sales tax at the point of sale and remit it to the state Department of Revenue. The tax is included in the final price you pay — it's not added on top at checkout in Massachusetts, though the receipt will show it separately. Vendors are responsible for collecting the correct amount based on what they're selling.

The revenue from sales tax funds state operations, including education, transportation, and public services. Massachusetts uses the 6.25% rate consistently across the state — there are no local or county sales taxes added on top, unlike some other states.

Frequently Asked Questions

Is clothing always tax-free in Massachusetts?

No. Clothing and footwear under $175 per item are tax-free. Items over $175 are taxed at 6.25%. The threshold applies to individual pieces, so a $200 coat is taxed but a $150 coat is not. Accessories like jewelry and handbags are not covered by the clothing exemption.

Why is restaurant food taxed but grocery store food isn't?

Massachusetts taxes prepared and ready-to-eat food because it's considered a service — the vendor has prepared it for when ready consumption. Groceries are raw ingredients or packaged foods you prepare yourself at home, so they're exempt. The location doesn't matter; a prepared sandwich from a grocery store deli is taxed the same as one from a restaurant.

Do I pay sales tax on online purchases from Massachusetts retailers?

Yes. Massachusetts retailers must charge sales tax on purchases shipped to Massachusetts addresses, whether the order is placed online, by phone, or in person. The same rules explore — groceries and clothing under $175 are exempt, prepared food and most goods are taxed at 6.25%.

Are prescription medications taxed?

No. Prescription medications are exempt from Massachusetts sales tax. Over-the-counter medications like pain relievers and cold medicine are also exempt. However, other health and beauty items like shampoo, toothpaste, and vitamins are taxed at the full rate.

What about used clothing or secondhand items?

Used clothing sold by thrift stores, consignment shops, and secondhand retailers is still subject to the same rules — items under $175 are exempt, items over $175 are taxed. The exemption applies based on the current sale price, not the original price of the item.