The majority of apparel items that cost less than $175, prescription medications, and some medical gadgets are some of the things that are free from sales tax in Massachusetts. Additionally, some food products, like groceries, are exempt from sales tax. Sales tax, however, applies to prepared food items like restaurant meals.
You must multiply the total by the applicable sales tax rate in order to calculate sales tax from a total. For instance, if a purchase costs $100 overall and the sales tax rate is 6.25%, the total sales tax would be $6.25. Therefore, $106.25 would be the final cost, including sales tax.
In Massachusetts, the price of the car is used to determine the sales tax due. Regardless of any trade-in allowances or reductions, the entire purchase price of the car is subject to the current sales tax rate of 6.25%. For instance, if a car costs $20,000 to buy, the sales tax would be $1,250.
You must submit an application for a sales tax exemption certificate in order to be tax-exempt in Massachusetts. Certain organizations, including non-profits and governmental bodies, are eligible to get this certificate, which is granted by the Massachusetts Department of Revenue. You must complete and submit Form ST-5, which is available on the Department of Revenue website, in order to request a sales tax exemption certificate.
It may be necessary for you to register for sales tax with the Department of Revenue if you sell products or services in Massachusetts. In general, you must register for sales tax if you have a physical presence in Massachusetts, such as a store or office. However, if you sell to people in Massachusetts, even if you don’t have a physical presence there, you could still need to register for sales tax. You must fill out and submit Form ST-1, which is also available on the Department of Revenue website, in order to register for sales tax.
In conclusion, Massachusetts levies a 6.25% sales tax on the majority of products and services. There are several exceptions and exclusions, nevertheless, which apply to particular goods and transactions. You must multiply the total by the applicable sales tax rate in order to calculate sales tax from a total. In Massachusetts, the price of the car is used to determine the sales tax due. You must submit an application for a sales tax exemption certificate in order to be tax-exempt in Massachusetts. It may be necessary for you to register for sales tax with the Department of Revenue if you sell products or services in Massachusetts.