MA Sales Tax Holiday Aug. 12-13, 2023

This year’s Massachusetts sales tax holiday will be held on Saturday, August 12th and Sunday, August 13th, according to the Massachusetts Department of Revenue (DOR). The event provides a two-day reprieve from sales tax on most retail purchases valued at up to $2,500 when made for personal use by individuals. Purchases by businesses or by individuals for business use remain taxable.

The following items are exempt from the sales tax holiday:

• Meals
• Motor vehicles
• Motorboats
• Telecommunications services
• Gas
• Steam
• Electricity
• Tobacco products
• Cannabis or cannabis products
• Alcoholic beverages
• Any single item whose price is more than $2,500

Tax exemptions extend to items purchased over the internet, as well, as long as that order is placed on the sales tax holiday during Eastern Standard Time. If you spend more than $2,500 on any one item, the entire amount paid for the item is subject to sales tax, not just the amount that exceeds that threshold.

What retailers should know.

If a retailer mistakenly collects sales tax during the sales tax holiday, that tax must be remitted to the DOR. If a customer requests a refund of any tax paid, the retailer must refund that tax. If a retailer has already remitted tax to the DOR, it may file an amended return to recover amounts refunded to customers.

If you have questions, please contact Kelly Zack, MST, Director, State & Local Tax at 774.512.4001 or kzack@aafcpa.com or your AAFCPAs tax advisor.