The Massachusetts sales tax holiday is right around the corner on August 10th and 11th! Most retail items up to $2,500, purchased in Massachusetts for personal use on these two days, will be exempt from sales tax. Plan your purchases accordingly and help support small businesses.

Do You Qualify?

The sales tax holiday applies only to eligible retail items bought for personal use by individuals.

What Remains Taxable?

  • Purchases by corporations or other businesses
  • Purchases by individuals for business use

Non-Qualifying Retail Items:

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

  • Meals
  • Motor vehicles
  • Motorboats
  • Telecommunications services
  • Gas
  • Steam
  • Electricity
  • Any single item priced over $2,500

Internet Sales

Yes, internet sales do qualify if you order and pay for an eligible item over the internet on the sales tax holiday, during Eastern Daylight Time.

Retailer Participation

All businesses that normally make taxable sales of tangible property in Massachusetts or to purchasers in Massachusetts and are open for business on August 10 and 11 must participate in the sales tax holiday.

Limitations

  • The exemption is limited to eligible sales of items costing $2,500 or less.
  • If an item costs more than $2,500, the entire amount is subject to sales tax.
  • Multiple items each costing $2,500 or less can be combined tax-free even if their total exceeds $2,500.

Clothing Exemption

  • Items of clothing costing less than or equal to $2,500 are not subject to tax.
  • For items costing more than $2,500, the first $175 is exempt from tax.

Other Information

  • Cancelling prior purchases to re-book on the holiday weekend is not allowed.
  • Items paid in full during the holiday weekend can be delivered after the weekend without incurring sales tax.

After the Sales Tax Holiday

  • Exchanges or returns of items purchased during the holiday will not retroactively incur tax.
  • If charged sales tax in error, seek a refund from the business with proof of purchase.
  • Retailers must remit any erroneously collected sales tax to the DOR and can file an amended return to recover refunded amounts.

For more details, please visit the Massachusetts Sales Tax Holiday FAQ. Happy shopping and support your local businesses!