Massachusetts Sales Tax Information, Sales Tax Rates, and Deadlines

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how much is sales tax in ma

New businesses and those with a combined annual withholding, sales and use tax liability, and room occupancy excise liability of $5,000 or more must file returns and make payments electronically. Once you have reached that threshold for one year, you must file and pay online in all subsequent years. To ensure sales tax compliance in Massachusetts, you must obtain a sales tax certificate by registering with the state. This can be done online through the MassTaxConnect portal, and you’ll receive one registration certificate for each business location you enter. These certificates must be on display in a conspicuous location during normal business operations.

How do you calculate sales tax in Massachusetts?

The Massachusetts sales tax is 6.25% of the sales price or rental charge on tangible personal property, including certain telecommunication services sold or rented in Massachusetts. Sales tax is generally collected by the seller.

Sales oflocal residential telephone services billed on a recurring basis or for message unit charges , up to a total of $30 per month. This includes service provided to an individual for personal use at their residential address . There are interest and penalty charges for not filing sales/use tax returns on or before the due date. Some taxpayers are required to file amended returns and applications for abatement electronically.See if electronic filing and payment requirements apply to you.

Tax-Exempt Items & Sales

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how much is sales tax in ma

Although we generally don’t recommend it, you always have the option to skip the agency protest process and file in administrative court. Massachusetts hasdetailed information as to the taxability of software and related issues. Broadly taxes prewritten computer software, regardless of the method of massachusetts income tax delivery. Conversely, the sale of custom software is viewed as purchasing the professional service of the programmer and generally exempt in Massachusetts. Input the total of your itemized deductions, such as mortgage interest, charitable contributions, medical and dental expenses, and state taxes.

What are DMV or state fees when purchasing a car in Massachusetts?

Your assigned filing frequency depends on the volume of transactions you have within a state. Many states will ask about your expected volume of sales during the registration process. Some other states will initially default your account to monthly filings. All states will re-evaluate your filing frequency on an annual basis. Completing a registration will allow your business to begin collecting taxes going forward. If you have taxes from prior periods to disclose, a VDA will enable you to do so with the added benefit of the penalties being waived.

  • A sales tax chart can be used to quickly determine how much tax is owed for a purchase of a given price.
  • If your total itemized deductions are less than the standard deduction, the calculator will use the standard deduction.
  • You may also need to pay insurance for any employees, such as employee compensation insurance or unemployment tax and other requirements.
  • Tax-exempt organizations that sell tangible personal property or telecommunications services in the regular course of business are also considered vendors and required to collect sales/use tax.
  • Rates are for reference only; may not include all information needed for filing.
  • There are often multiple sales tax rates per ZIP code, county, and city.