What is Exempt from Massachusetts Sales Tax?

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What is exempt from Massachusetts sales tax?
Goods that are subject to sales tax in Massachusetts include physical property, like furniture, home appliances, and motor vehicles. Prescription medicine, groceries, gasoline, and clothing are all tax-exempt.
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In Massachusetts, paying sales tax is required for the purchase of some products and services. But not all goods and services in the state are liable for paying sales tax. The things that are taxable in Massachusetts, the Massachusetts small business exemption, and who is responsible for paying sales tax will all be covered in this article.

Massachusetts Sales Tax Exempt Items

In Massachusetts, the following items are exempt from sales tax:

1. Clothes: In Massachusetts, clothing that costs $175 or less per item is exempt from sales tax.

2. Food and Beverages: The majority of food and beverages sold for human use, including groceries, cooked meals, and beverages, are exempt from sales tax. Sales tax does apply to several items, including candy, soda, and prepared meals served by restaurants.

3. Medical Devices and Supplies: Prosthetics, hearing aids, and prescription eyeglasses are just a few examples of the medical devices and supplies that are free from sales tax.

4. Newspapers and Magazines: These items are not subject to sales tax.

5. Education and Training Services: These services are exempt from sales tax, including tutoring and music classes.

Massachusetts Taxable Items

In Massachusetts, the following things are subject to tax:

1. Motor Vehicles: In Massachusetts, sales tax is charged on all types of motor vehicles, including cars, trucks, and motorcycles.

2. Prepared Meals: Restaurants and fast-food outlets are required to collect sales tax from customers who purchase prepared meals.

3. Candy and Soda: In Massachusetts, candy and soda are subject to sales tax. 4. Tobacco and Marijuana Products: Sales tax is applicable to all tobacco and marijuana products, including cigarettes, cigars, and vape pens. Exemption for Massachusetts Small Businesses

Small businesses in Massachusetts are excused from paying sales tax on the first $500,000 of yearly sales. Businesses must have yearly sales of less than $1 million and be under three years old in order to be eligible for the exemption. The burden of paying sales tax

In Massachusetts, sales tax is owed by both buyers and sellers. The buyer is responsible for paying the sales tax on their purchase, and the seller is required to collect it from them and send it to the state.

In conclusion, both businesses and customers must be aware of what is excluded from the Massachusetts sales tax. Although a lot of things are exempt from sales tax, it’s vital to keep in mind that some things, such prepared foods and tobacco goods, are subject to tax. Small companies may also be eligible for an exemption on their first $500,000 in annual sales. Last but not least, Massachusetts requires both purchasers and sellers to pay sales tax, with the vendor obtaining and remitting the tax and the customer paying it at the time of purchase.

FAQ
Are non profit tax exempt in Massachusetts?

If they have been granted tax-exempt status by the state, certain nonprofit organizations in Massachusetts may be excluded from state sales tax on purchases made for their nonprofit purposes. Nonprofit organizations do not all automatically qualify for this exemption; instead, they must make a separate application. Therefore, a nonprofit’s unique tax-exempt status and whether or not it has received formal state recognition determine whether or not it is exempt from paying sales tax in Massachusetts.

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