Tax-Free Weekend in Massachusetts: What You Need To Know

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BOSTON – The legislature and the Governor has declared has declared August 29-30, tax-free weekend in Massachusetts.

The sales tax holiday applies to individuals purchasing retail items for personal use only.

Purchases by corporations or other businesses—or purchases by individuals for business use—remain taxable.

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The following do not qualify for the sales tax holiday exemption:

• Meals
• Motor vehicles
• Motorboats
• Telecommunications services
• Gas
• Steam
• Electricity
• Tobacco products
• Marijuana or marijuana products
• Alcoholic beverages, and
• Any single item whose price is more than $2,500.
   

Meals do not qualify for the sales tax holiday exemption. 

If you order and pay for an eligible item over the internet on the sales tax holiday, Eastern Daylight Time, that item will qualify for the sales tax holiday exemption.  No sales tax is due on that purchase, even if delivery of the item occurs after the sales tax holiday weekend.
 

As long as the items rented are not ineligible items, such as motor vehicles or motorboats, individuals may take advantage of the sales tax holiday for rentals of up to 30 days. However, the rental must be paid for in full on the holiday weekend.

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All businesses normally making taxable sales of tangible property in Massachusetts or to purchasers in Massachusetts that are open for business on August 29 and 30 must participate in the sales tax holiday, including internet vendors.

The sales tax holiday exemption is limited to eligible sales of items costing $2,500 or less.
 

If you spend more than $2,500 on an item, the entire amount paid for the item is subject to sales tax, not just the amount that exceeds that threshold. There is, however, an exemption with respect to clothing.  An item of clothing is generally exempt from the sales tax unless the item costs more than $175.  If it does, only the amount over $175 is subject to tax. If on the sales tax holiday, the price of an item of clothing exceeds $2,500, the first $175 is not subject to tax. 

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As long as the price of each individual item is $2,500 or less, you can purchase as many items as you want together, tax-free, even if all the items added together cost more than $2,500.

If you were charged tax in error, the business that you bought your item from is responsible for giving you a refund of the tax you paid.  You should provide the business with your receipt or other proof of purchase to determine the amount of your refund.