Sales tax guidelines are different in each state. Does your business need to file a sales tax return and remit tax payments to Massachusetts? Use TaxJar’s sales tax guide and calculator to understand the intricacies about the sales tax guidelines for the state of Maryland. TaxJar’s guide demystifies the economic thresholds, enabling sellers and businesses to understand if they have a sales tax obligation in Maryland. Never miss a deadline again and estimate your potential sales tax liabilities.
Do you need to collect sales tax in Massachusetts?
You’ll need to collect sales tax in Massachusetts if you have nexus in the state. Sellers and businesses can hold either physical or economic nexus, triggering the need to file a sales tax return (and remit payments) in Massachusetts. Physical nexus means having a tangible presence or activity in a state. Economic nexus means passing a states’ economic threshold for total revenue or the number of sales transactions.
Do you have physical nexus in Massachusetts?
Massachusetts considers a seller to have physical nexus if they meet the following conditions:
- An office, place of business, or any owned property
- An employee present in the commonwealth for more than 2 days per year
- Goods in a warehouse
- Ownership of real or personal property
- A sample or display area, such as a trade show exhibit
- Delivery of property or performance of service in Massachusetts
The Massachusetts Department of Revenue (Massachusetts’s taxing authority) offers additional insights about what constitutes sales tax nexus in Massachusetts.
Do you have economic nexus in Massachusetts?
Effective October 1, 2019, Massachusetts considers vendors who make more than $100,000 in sales in the state over the preceding calendar year to have economic nexus. This means these vendors are obligated to collect sales tax from buyers in the state. You can read Massachusetts’s economic nexus guidance for businesses. You can also read insights from TaxJar about economic nexus in every state.
Is what you’re selling taxable?
| Services in Massachusetts are generally not taxable. However, if the service you provide includes creating or manufacturing a product, you may need to assess and remit sales tax on products.
Tangible personal property is taxable in Massachusetts, with a few exceptions. These exceptions include clothing that costs less than $175, most non-restaurant food and groceries, several health care and sanitation items, prescribed medical devices, and periodicals. |
How to get a sales tax permit in Massachusetts
Businesses can register online at Massachusetts’ MassTax Connect. Or visit our registration page to request TaxJar manage your Massachusetts registration for you.
You’ll need the following information to register or a sales tax permit in Massachusetts:
- Identifying information about your business
- Type of business
- Owners and officers
- Description of business activities
There is no charge to register for a sales tax permit in Massachusetts. Other business registration fees may apply. Contact each state’s individual department of revenue for more about their requirements for registering your business.
Collecting sales tax
Massachusetts has a statewide tax rate of 6.25%. This simplifies tax collection, as businesses with physical or economic nexus only need to charge the state sales tax rate of 6.25% to buyers in Massachusetts.
Should you collect sales tax on shipping charges in Massachusetts?
Shipping is generally not taxable in Massachusetts as long as you split shipping charges on a separate line item in the invoice or sale to your customer. Read our detailed explanation of sales tax on shipping in Massachusetts.
When are returns due?
When you file and pay Massachusetts sales tax depends on your assigned filing frequency and your state’s due dates.
How often will you file sales tax returns in Massachusetts?
States assign you a filing frequency when you register for your sales tax permit. In most states, how often you file sales tax is based on the amount of sales tax you collect from buyers in the state.
In Massachusetts, you will be required to file and remit sales tax either monthly, quarterly, or annually. Massachusetts sales tax returns are always due the 30th of the month following the reporting period. If the filing due date falls on a weekend or holiday, sales tax is generally due the next business day.
Filing sales tax
When filing sales tax in Massachusetts, businesses must follow these three simple steps:
- Calculate how much sales tax you owe
- File a sales tax return
- Make a payment
How to calculate how much sales tax you owe in Massachusetts
Calculating how much sales tax you should remit to the state of Massachusetts is easy with TaxJar’s Massachusetts sales tax report.
Connect the channels through which you sell — including Amazon, eBay, Shopify, Square and more — and we’ll calculate exactly how much sales tax you collected. All the information you need to file your Massachusetts sales tax return will be waiting for you in TaxJar. All you have to do is login.
How to file and pay sales tax in Massachusetts
You have several options for filing and paying your Massachusetts sales tax:
- File online – Visit the Massachusetts Department of Revenue. You can remit your payment through their online system. Businesses with more than $5,000 in tax liability must use this method to file.
- File by mail – Fill out and mail in form ST-9
- AutoFile – Let TaxJar file your sales tax for you. We take care of the payments, too. You’ll never have to worry about spreadsheets, calculations or filling out complex sales tax returns.
