Mark your calendars: August 8 and 9, 2026 are this year’s Massachusetts Sales Tax Holiday weekend. During these two days, the state’s 6.25 percent sales tax will be suspended on most retail purchases of $2,500 or less – both in-store and online – made within the Commonwealth.

The following is for informational purposes only. For specific tax guidance, please consult a licensed tax professional or contact the Massachusetts Department of Revenue.

What Is Eligible?

The sales tax holiday exemption applies to most retail items purchased for personal use by individuals, with a per-item price of $2,500 or less. This includes both in-store purchases and online orders placed and paid for during Eastern Daylight Time on August 8 or 9 – even if delivery occurs after the holiday weekend.

Items that do NOT qualify for the exemption include:

• Meals
• Motor vehicles
• Motorboats
• Telecommunications services
• Gas, steam, and electricity
• Tobacco products
• Marijuana or marijuana products
• Alcoholic beverages
• Any single item priced above $2,500

Additional rules to be aware of:

• Multiple items: If each individual item is priced at $2,500 or less, a customer may purchase as many items as they wish tax-free – even if the combined total exceeds $2,500. The $2,500 threshold applies per item, not per transaction.
• Items over $2,500: If a single item exceeds $2,500, the entire purchase price – not just the amount above the threshold – is subject to sales tax.
• Clothing: Clothing items priced at $2,500 or less are fully exempt during the holiday. Items priced above $2,500 are taxed on the full amount above $175.
• Rentals: Qualifying items rented for up to 30 days are eligible, provided the rental is paid in full during the holiday weekend. Motor vehicles and motorboats do not qualify.
• Layaway: Layaway sales do not qualify for the exemption.
• Pre-holiday purchases: Customers cannot cancel and re-book prior purchases to take advantage of the holiday. Items deposited on, prepaid for, or otherwise committed to prior to August 8 are not eligible.
• Business purchases: The exemption applies only to items purchased for personal use. Purchases made by corporations, other businesses, or individuals for business use remain taxable.

What Businesses Need to Know

All retail businesses in Massachusetts that sell taxable goods and are open on August 8 and/or 9 are required to participate in the Sales Tax Holiday. This is not optional.

Steps to take before the weekend:

• Update your point-of-sale system: Confirm that your POS or e-commerce platform can be configured to correctly apply the exemption on August 8 and 9. Test it before the weekend to avoid errors at checkout.
• Train your staff: Make sure employees who handle transactions understand the rules – particularly the per-item $2,500 threshold and which categories remain taxable.
• Review the DOR FAQs: The Massachusetts Department of Revenue has published detailed guidance on the holiday. This is particularly useful for edge cases involving clothing, rentals, and online orders.
• Plan your promotions early: Many retailers use this weekend as an opportunity to drive additional traffic with sales events. Get marketing materials and social media posts prepared well ahead of August 8.
• Watch for errors: If your business accidentally collects sales tax on an eligible item, that tax must still be remitted to the DOR. If a customer requests a refund of tax collected in error, you are required to refund them – and may then file an amended return to recover those amounts.

Reporting exempt sales: On your August Sales and Use Tax Return, report the sales amount of items not charged tax during the holiday on Line 2, “Exempt Sales.”

After the Holiday Weekend

• Returns and exchanges: No sales tax is due on exchanges made after the holiday on items originally purchased during the holiday weekend. Customers will not be subject to tax retroactively.
• Customer refunds for tax charged in error: If a customer was incorrectly charged sales tax on an eligible purchase, your business is responsible for issuing that refund upon request with proof of purchase.

Resources & More Information

• Massachusetts Department of Revenue – Sales Tax Holiday FAQs
• 830 CMR 64H.1.8: Sales Tax Holiday Regulation
• Massachusetts Legislature Press Release – H.5495/S.3119
• MassTaxConnect – Log In or Register Your Business
• DOR Contact Center: (617) 887-6367 | Toll-free in MA: (800) 392-6089 | Monday-Friday, 9 a.m.-4 p.m.