Alcohol Tax in Massachusetts: Everything You Need to Know

Is alcohol taxed in MA?
The ballot measure for the 2010 ballot was added after the Massachusetts State Legislature increased the sales tax in the state from 5% to 6.25% and eliminated an exemption for alcohol sold in liquor stores. The Measure passed with 52% of the vote thereby eliminating the sales tax on alcohol beginning.
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Like every other state in the union, Massachusetts levies taxes on the sale of alcoholic beverages. The kind of beverage determines the Massachusetts alcoholic beverage tax rate. For instance, the tax rate on beer differs from the tax rate on wine or spirits. In addition, Massachusetts levies a sales tax on all retail transactions, including the sale of alcohol.

In Massachusetts, beer will be subject to a $0.11 per gallon tax beginning in 2021. The tax rate for wine is $0.55 per gallon, whereas the tax rate for spirits is $4.05 per gallon. The state sales tax, which is currently set at 6.25%, is in addition to these tax rates.

Massachusetts’s sales tax is neither the highest nor the lowest in the country. With a rate of 7.25%, California is the state with the highest sales tax. However, five states—Alaska, Delaware, Montana, New Hampshire, and Oregon—do not levy state sales taxes. The sales tax rate of Connecticut, which borders Massachusetts, is 6.35%. This means that you will still be required to pay the 6.25% Massachusetts sales tax if you buy alcohol in Connecticut and bring it back to Massachusetts.

Some towns and localities in Massachusetts levy a local sales tax in addition to the state sales tax. Boston’s local sales tax rate is 0.75% as of 2021, whereas Springfield’s local sales tax rate is 0.5%. Check the tax rates of the precise location where you intend to buy alcohol because other cities and municipalities may also levy local sales taxes. In conclusion, it should be noted that Massachusetts taxes alcohol, with the tax rate varying according to the type of beverage. Additionally, Massachusetts levies a 6.25% state sales tax on all retail purchases, including alcoholic beverages. It’s necessary to be aware of local sales tax rates in addition to the state sales tax even if Massachusetts doesn’t have the highest sales tax rate.