Minimum Sales Rate Tax for 2024
| 5.60% | Column content | Column content | Column content | Column content | |
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| Rtd Greater Denver | Column content | Column content | Column content | Column content | |
| 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 Cambridge 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 Cambridge, 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 Cambridge
Massachusetts charges a 5.7% room occupancy tax, made up of a 5% base rate and a 0.7% surtax. Other items like alcohol, fuel, and cannabis have separate tax rates.
Services
Typically not taxable, except for services like telecommunications and room rentals.
Goods
Most goods, including appliances, cars, furniture, sporting goods, and electronics, are generally taxable.
Clothing
Generally subject to sales tax if over $175.
Electronics
Taxable
SaaS
Generally Not taxable
Digital Products
Not subject to sales tax if delivered electronically.
Software
Pre-written software isn’t subject to sales tax, custom software could be taxable.
Freight/Shipping
Shipping and freight charges are typically taxable when included in the sale of a taxable item.
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