MA Tax Free Weekend is Back! - A Global Tax Blog Article from KLR

Global Tax Blog

MA Tax Free Weekend is Back!

posted Aug 9, 2018 by Paul McVay in the Global Tax Blog

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Good news, Massachusetts….tax free weekend is back! For the first time since 2015, MA shoppers will benefit from a tax free weekend from Saturday August 11th through Sunday August 12th 2018. State legislators approved an economic development bill this week that brings the two day sales tax holiday back.

More about the sales tax holiday

Shoppers going out to MA this Saturday and Sunday will not have to pay the 6.25% sales tax on individual items costing $2,500 or less, provided they are not listed below under “purchases not eligible”.

  • Note- You can purchase single items of tangible personal property costing $2,500 or less tax-free but will still have to pay tax (in full) on a single item costing more than $2,500. For example, the 6.25% tax would apply to the full price of a $3,000 TV, not just the $500 that exceeds the $2,500 threshold.

Online purchases in the state will also be free of sales tax, provided they are purchased on August 11th and 12th.

Are there any purchases not eligible?

The tax free holiday waives the state’s sales and used tax for most retail purchases but there are a number of exceptions.

The following items will still be subject to tax this weekend:

  • Meals
  • Motor vehicles
  • Motorboats
  • Tobacco products
  • Payments for utilities (like gas, steam and electricity)
  • Telecommunication services

Why was the holiday ditched in 2016 and 2017?

Lawmakers decided not to hold the holiday in 2016 and 2017 due to budget shortfalls.

So why is it back in 2018? Government leaders say that the holiday is an opportunity to help families who may be struggling to purchase back-to-school supplies, as well as a chance to support local retailers.

Questions on MA’s tax free weekend? Reach out to our Tax Services Team. Happy shopping!