Every year, Massachusetts hosts a tax-free weekend, but the COVID-19 epidemic has forced its cancellation for 2020. The condition of the epidemic and the state’s financial situation will likely determine whether or not the state holds a tax-free weekend in 2021.
For those who are unaware, Massachusetts’s tax-free weekend enables consumers to purchase specific goods without having to pay the state’s 6.25% sales tax. Not all things, meanwhile, are immune from taxes this weekend. For instance, the tax-free weekend does not apply to purchases costing more than $2,500, tobacco, marijuana, and automobiles.
Compared to other states, Massachusetts has a comparatively high sales tax. California has the highest state-level sales tax of all the states that impose one, with a rate of 7.25%. Tennessee has the highest overall sales tax rate of 9.47% when municipal taxes are factored in, whereas Alaska has neither a state nor a local sales tax. Last but not least, Massachusetts generally taxes equipment rentals. There are a few exceptions, though, including rentals for agricultural purposes, for medical equipment, or for manufacturing or R&D.
Finally, the tax-free weekend in Massachusetts has been postponed until 2020, and its future is questionable. During the tax-free weekend, some things are eligible for tax exemption, such as handbags priced under $175, but not all items are. In comparison to other states, Massachusetts has a somewhat high sales tax, and unless certain exclusions apply, renting out equipment is typically taxable.
Candy is typically subject to sales tax in Massachusetts. However, the confection may be excluded from sales tax if it is categorized as a “grocery staple” and contains flour.
Sunglasses are not exempt from sales tax on weekends in Massachusetts and are subject to it.