Alyssa Specht, MSA •
For many people living in Massachusetts, sales tax is a familiar part of everyday purchases. But did you know there’s a Massachusetts Sales Tax Holiday coming up?
This year’s sales tax holiday runs from August 8th through August 9th. The holiday only applies to individuals buying items for personal use, including eligible online purchases. It does not apply to purchases by businesses or items purchased for business use. Additionally, not every purchase qualifies during this holiday. Some common items that are not eligible include meals, gas, and alcoholic beverages. During the holiday, eligible retail items costing $2,500 or less that are purchased for personal use are exempt from Massachusetts sales tax. As long as each eligible individual items costs $2,500 or less, it should qualify for the exemption, even if the total purchase exceeds $2,500.
For many people living in Massachusetts, sales tax is a familiar part of everyday purchases. But did you know there’s a Massachusetts Sales Tax Holiday coming up?
This year’s sales tax holiday runs from August 8th through August 9th. The holiday only applies to individuals buying items for personal use, including eligible online purchases. It does not apply to purchases by businesses or items purchased for business use. Additionally, not every purchase qualifies during this holiday. Some common items that are not eligible include meals, gas, and alcoholic beverages. During the holiday, eligible retail items costing $2,500 or less that are purchased for personal use are exempt from Massachusetts sales tax. As long as each eligible individual items costs $2,500 or less, it should qualify for the exemption, even if the total purchase exceeds $2,500.
A purchase made during the holiday that gets returned or exchanged after the holiday generally will not be required to pay the sales tax that was previously exempt. For additional details, take a look at the Frequently Asked Questions posted by the Massachusetts Department of Revenue.
While most people are familiar with sales tax, few people know about use tax. Use tax generally applies when taxable items are purchased without paying sales tax and are then used, stored, or consumed in a state. Both individuals and businesses may be subject to use tax.
The purpose of use tax is to ensure that purchases are taxed similarly regardless of where they are made. Each state has its own percentage of use tax which tends to be the same percentage as the state’s sales tax. It is important to note that states that do not have sales tax, like New Hampshire, generally do not have use tax.
For example, Massachusetts has a 6.25% use tax on qualifying out of state purchases that are brought into Massachusetts or on taxable online purchases where no Massachusetts sales tax was collected. Individuals are responsible for paying directly to the Massachusetts Department of Revenue (DOR) or annually on their Massachusetts income tax return. Businesses that are registered in Massachusetts are generally responsible for tracking and remitting any applicable use tax and paying it to the DOR. To learn more about use tax in Massachusetts, take a look at these resources: Massachusetts Individual Use Tax and Sales and Use Tax.
While most people are familiar with sales tax, few people know about use tax. Use tax generally applies when taxable items are purchased without paying sales tax and are then used, stored, or consumed in a state. Both individuals and businesses may be subject to use tax.
The purpose of use tax is to ensure that purchases are taxed similarly regardless of where they are made. Each state has its own percentage of use tax which tends to be the same percentage as the state’s sales tax. It is important to note that states that do not have sales tax, like New Hampshire, generally do not have use tax.
For example, Massachusetts has a 6.25% use tax on qualifying out of state purchases that are brought into Massachusetts or on taxable online purchases where no Massachusetts sales tax was collected. Individuals are responsible for paying directly to the Massachusetts Department of Revenue (DOR) or annually on their Massachusetts income tax return. Businesses that are registered in Massachusetts are generally responsible for tracking and remitting any applicable use tax and paying it to the DOR. To learn more about use tax in Massachusetts, take a look at these resources: Massachusetts Individual Use Tax and Sales and Use Tax.
RSS Feed