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What to know ahead of the Massachusetts sales tax holiday

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BOSTON — Massachusetts residents have the chance to purchase big ticket items without worrying about the 6.25% tax during the sales tax holiday weekend.

The holiday will be on Saturday, August 9 and Sunday, August 10, according to state officials.

During the holiday, most retail items of up to $2,500 purchased for personal use will be exempt from sales tax, but not all of them.

Here’s what you need to know:

Items that do not qualify

Several items are still taxable and are not tax exempt. including meals, cars, motorboats, telecommunications services, gas, steam, electricity, tobacco products. marijuana or marijuana products, and alcoholic beverages.

Any single item that costs more than $2,500 is not tax exempt. If you spend more than $2,500 on an item, the entire amount paid is subject to sales tax, not just the amount that exceeds the threshold.

Layaway sales also do not qualify for the sales tax exemption, according to officials.

What if I purchase multiple items that each cost $2,500 or less, but the total price is more than $2,500?

State officials say if the price of each individual item is $2,500 or less, you can combine as many items as you want, tax-free, even if the combined items cost more than $2,500.

Exemption on clothing

Unless it costs more than $175, an item of clothing of generally exempt from the sales tax.

However, for items that cost more than $175, only the amount of $175 is subject to tax.

On the sales tax holiday, if the price of an item of clothing is more than $2,500, the first $175 is not subject to tax but the rest would be.

If it’s less than or equal to $2,500, the entire amount isn’t subject to tax.

Do all retailers have to take part in the sales tax holiday?

Yes. All businesses must take part in the sales tax holiday if the business is open on August 9 and 10 and normally makes taxable sales of tangible property in the Bay State or to purchasers in the state.

What remains taxable?

Purchases by corporations or other businesses and purchases by individuals for business use.

For more information about the sales tax holiday, click here.

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