What Items are Exempt from Sales Tax in Massachusetts?

Sales tax is a fee levied on the purchase of goods and services. The sales tax rate in Massachusetts is 6.25%. But not all things must be purchased with sales tax. Certain goods in the state are exempt from paying sales tax. It is crucial to understand what products are exempt from sales tax if you operate a business or are a consumer in Massachusetts. Items Exempt from Massachusetts Sales Tax

1. Clothing – Sales tax is not applied to clothing purchases under $175. This covers things like clothing, caps, and diapers.

3. Prescription medications – Prescription medications are not subject to sales tax.

5. Products used in agriculture and horticulture are exempt from sales tax. Examples include seeds, plants, and fertilizers.

Do I Have to Pay Taxes When I Sell Things Again? Yes, you must pay taxes on the transaction if you are reselling goods. Sales tax will be applied when you buy goods from a supplier or wholesaler. You will charge your consumer sales tax when you sell the goods. The sales tax must then be paid to the state.

It is legitimate to purchase goods and resell them. But if you want to acquire things to sell on, you’ll need to get a wholesale license. You can buy products from manufacturers and distributors without paying sales tax if you have a wholesale license. You must submit an application for a sales tax permit with the Massachusetts Department of Revenue in order to get a wholesale license in Massachusetts.

You must do the following actions in order to obtain a wholesale license in Massachusetts: 1. Sign up with the Massachusetts Department of Revenue for a sales tax permit. 2. Give details about your company, such as your company name, address, and tax identification number. You’ll get a sales tax permit after your application is accepted, which is number three. 4. Purchase goods from wholesalers and manufacturers without paying sales tax by using your sales tax permit.

Less than $175 worth of apparel is exempt from sales tax in Massachusetts. This covers things like clothing, caps, and diapers. Sales tax, however, is charged on apparel products that cost more than $175. It is significant to emphasize that the exception only covers apparel designed for daily use. Sales tax applies to apparel meant for protective wear, such as safety clothing.