Massachusetts’ Tax Free Weekend is back! Tax Free Weekend begins Saturday, August 11 at 12:01 a.m. and lasts until 11:59 p.m. on Sunday, August 12. This is the first Tax Free Weekend in Massachusetts since 2015.
State lawmakers took their time before declaring that the sales tax holiday would return. It was not approved until August 1, because it was included in a larger economic development bill. The Tax Free Weekend typically costs the state about $20 million in revenue, which is why it was canceled during tighter budget years.
But the tax holiday is becoming a permanent fixture beginning this year. Governor Charlie Baker signed a law that establishes the Tax Free Weekend as an annual holiday one weekend each August.
The Tax Free Weekend apply to just about anything under $2,500 in Massachusetts. The holiday does not include sales of tobacco, gas, cars or restaurant meals. You can read the full list of regulations here.
Items that Qualify for Tax-Free Status in Massachusetts
In Massachusetts, the regular 6.25 percent sales tax is suspended on clothes, school supplies and other personal property items costing up to $2,500. Items need to be for personal use, not business. The Tax Free Weekend applies to just about everything.
Here are examples of items that qualify for tax free status.
• School Supplies
• Computers and other electronics
• Watercraft such as canoes, kayaks and rowboats
Purchases made over the Internet ARE eligible for tax free status as long as the purchase occurs during the Tax Free Weekend.
After the Tax Free Weekend is over, shoppers do have the option of exchanging items for others of similar value. No tax is due on the exchange.
Items that Do NOT Qualify for Tax-Free Status in Massachusetts
In Massachusetts, items that cost more than $2,500 do NOT qualify for tax free status. Click here for a complete explanation of the items not do not apply.
Here are examples of items that do not qualify for tax free status:
• Marijuana products
• Jet Skis
• Restaurant Meals
• Telecommunications Services, such as prepaid calling cards
• Electricity, Natural Gas and Steam
Prior sales and layaway sales are not eligible for the sales tax holiday. Items purchased by corporations or by individuals for business purposes are also not eligible.