MA Sales Tax-Free Weekend Coming Up: What To Know

BOSTON, MA — The annual two-day sales tax sale in Massachusetts is approaching, just in time for back-to-school shopping.

The 2023 Massachusetts sales tax holiday will be held on Aug. 12 and 13, offering consumers a 6.25 percent discount on most smaller items. Some retailers — including ones that help with back-to-school shopping — will have special sales going on to entice consumers even more.

State law requires lawmakers to set a two-day sales tax holiday each year in August.

But there are a few rules to know before you hit the stores at your local mall or downtown shopping area.

One main thing to remember: the discount only applies to goods that cost $2,500 or less.

What does not qualify?

Restaurant bills; cannabis, alcohol and tobacco; gasoline; utilities, including phone plans; and big-ticket items like cars and boats.

Who's the holiday for?

Regular consumers. Businesses can't get the sales tax discount, and people who are making purchases to be used for a business purposes are supposed to pay the tax.

What about the internet?

The holiday applies online, too. There's no sales tax on internet purchases made on Saturday and Sunday during Eastern Daylight Time. Delivery time doesn't matter.

More on that $2,500 limit

There are a few things to keep in mind about the $2,500 limit. The limit applies to single items only — so if you buy five items that cost $2,500 each from a single retailer, you won't pay sales tax on any of them, even though they add up to much more than $2,500.
Also remember that you'll owe the full sales tax amount on any item that exceeds the $2,500 limit. For example, something that costs $3,500 will be taxed entirely at 6.25 percent rate, not just the $1,000 over the limit.

(There is wrinkly when it comes to clothing since residents never pay tax on items that cost $175 or less. Here's the example from state law: "A customer buys a wedding dress during the sales tax holiday for $2,550. Tax is due on $2,375, $2,550 - $175.")

Rentals

The sales tax holiday also applies to some rental items, excluding cars and motorboats.
"If you rent an item that qualifies for the sales tax holiday exemption, you can use the sales tax holiday for rentals of up to 30 days," the state Department of Revenue says. "However, the rental must be paid for in full on the holiday weekend."

Got charged tax?

If a retailer accidentally charges you sales tax on items exempt during the holiday, state officials recommend you ask for a refund via the retailer's customer service department.