Massachusetts residents can look forward to tax-free shopping this summer. The Commonwealth’s annual Sales Tax Holiday will take place on Saturday, August 9th and Sunday, August 10th, 2025. This two-day event allows individuals to purchase certain personal items without paying the state’s 6.25% sales tax, offering a great opportunity for savings.
Who Qualifies for the Sales Tax Exemption?
The exemption applies only to individual purchases made for personal use. Business purchases, including those made by corporations, partnerships, or individuals for business purposes, are not eligible for the exemption. All retailers that normally collect Massachusetts sales tax are required to participate if they are open for business on August 9th or 10th.
What Items Are Eligible?
Most retail items that are priced at $2,500 or less per item qualify for the sales tax holiday, including purchases made in-store or online. Items purchased online qualify as long as they are paid for in full during the tax holiday weekend and within Eastern Daylight Time.
Clothing also benefits from the exemption. Normally, clothing is exempt from sales tax on the first $175 of the purchase price. During the tax holiday, the full purchase price (up to $2,500 per item) is exempt from tax. If an article of clothing exceeds $2,500, only the amount over $175 is taxable.
Eligible short-term rentals (30 days or less) of qualifying items are also exempt, as long as the rental is paid in full during the holiday weekend. This does not include motor vehicles or motorboats.
What Items Are Not Eligible?
Not all items qualify for the sales tax holiday. The following remain fully taxable:
- Meals and prepared food
- Motor vehicles
- Motorboats
- Gas, steam, or electricity
- Telecommunications services
- Alcoholic beverages
- Tobacco products
- Marijuana or marijuana products
- Any single item priced over $2,500
Additionally, layaway purchases do not qualify, nor do previously placed orders or rebooked purchases made before the holiday weekend — even if delivery or final payment occurs during the holiday.
Important Clarifications
If you purchase multiple items and the price of each individual item is $2,500 or less, you can combine as many as you’d like and still receive the exemption, even if your total purchase exceeds $2,500.
You do not need to take physical possession of the item during the weekend. As long as you pay in full during the holiday, the exemption still applies, even if the item is delivered later.
What If You Were Charged Sales Tax in Error?
If you were charged sales tax on a qualifying item, the retailer is responsible for issuing a refund. To request a refund, you’ll need to provide a receipt or other proof of purchase.
Retailers that accidentally collect sales tax must either refund the tax to the customer or remit it to the Massachusetts Department of Revenue. If the tax has already been submitted, businesses may file an amended return to recover the refunded amount.
Retailers must report tax-exempt sales made during the holiday on Line 2 (“Exempt Sales”) of the August Sales and Use Tax Return.
Final Thoughts
The Massachusetts Sales Tax Holiday is a valuable opportunity for individuals to save on back-to-school supplies, electronics, furniture, and other qualifying retail purchases. It’s also an important time for retailers to prepare their systems and processes to ensure compliance and proper reporting.