Minimum Sales Rate Tax for 2024
| 5.60% | Column content | Column content | Column content | Column content | |
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| Scientific & Cultural Fac.(cd) | Column content | Column content | Column content | Column content | |
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| Minimum combined sales tax rate value | 6.25% | Column content | Column content | Column content | Column content |
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| Economic sales nexus threshold | $100,000 | Column content | Column content | Column content | Column content |
| Transactions threshold | N/A | Column content | Column content | Column content | Column content |
| Sales tax return filing due date | 20th day of the month following the end of the filing period | Column content | Column content | Column content | Column content |
The base state sales tax rate in Massachusetts is 0% and there is no city or county-specific tax therefore the minimum sales tax rate for Boston is 6.25%.
How to calculate your sales tax rate
Use our online sales tax calculator to determine the combined state and local sales tax rate for each location where you have a physical or economic nexus. Just enter your state and ZIP code to get your sales tax rate.
Looking for help calculating your sales tax? Contact us today to book a free consultation!
What is nexus?
In Boston, businesses must understand “nexus” to determine their tax obligations. Nexus refers to the connection that requires a business to collect sales tax in a state. This concept became even more important after the U.S. Supreme Court’s decision in South Dakota v. Wayfair, Inc., which allowed states to require sales tax collection based on economic activity rather than just a physical presence.
Specific sales tax rules for Boston
In Boston, room occupancy is subject to multiple layers of taxation. The state imposes a 5.7% room occupancy tax, which includes a 5% statutory rate and an uncodified 0.7% surtax. Additionally, Boston levies a local room occupancy tax of up to 6.5%, and an extra 2.75% tax is charged to support convention center financing. It’s important to note that other goods, such as alcohol, fuel, and cannabis, have their own distinct tax rates.
Services
Generally not taxable, with exceptions for services like telecommunications and room rentals.
Goods
In general most goods such as appliances, cars, furniture, sporting goods, and electronics, are subject to sales tax.
Clothing
Taxable if over $175.
Electronics
Taxable.
SaaS
Not taxable (considered a service).
Digital Products
Not taxable if delivered electronically.
Software
Pre-written software isn’t taxable, custom software could be.
Freight/Shipping
Shipping and freight charges are generally taxable if they are part of the sale of a taxable good.
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