Massachusetts sales tax holiday returning August 10 and 11
BOSTON - Massachusetts residents can expect a sales tax holiday the weekend of August 10-11.
On Thursday, the state legislature approved the tax holiday weekend, which has become somewhat of a tradition in Massachusetts. On August 10 and 11, the Massachusetts sales tax of 6.25% will be suspended for most items under $2,500.
Why a sales tax holiday?
The holiday usually attracts shoppers to stores during what is traditionally a slow season for retailers. During the 2023 holiday, the state's Department of Revenue said economic activity in Massachusetts increased, leading to and additional $3.54 million in indirect tax revenue. The August date has the added benefit of helping families who may be shopping for back-to school items.
"The sales tax holiday is a great opportunity for residents to get out and support the local businesses in their community and get some shopping done during a time of year when people are gearing up for the fall," State Senate President Karen Spilka said in a statement.
What's excluded from sales tax break?
All retailers must participate in the sales tax holiday, which include purchases made on the Internet during the holiday weekend. However, some items are not included in the sales tax holiday. Besides items costing more than $2,500, shoppers can expect to pay tax on:
- Meals
- Motor vehicles
- Motorboats
- Telecommunications services
- Gas
- Steam
- Electricity
- Tobacco products
- Marijuana or marijuana products
- Alcoholic beverages
"The sales tax holiday provides significant relief to families during a time of year where their checkbooks are already stretched from the purchase of back-to-school supplies and other family expenses," state Senator Susan Moran said in a statement. "It's also a vital tool in bolstering our economy, especially for our cherished small businesses, who often operate on thin margins."