Understanding the 7% Tax in Massachusetts
Many people wonder about a 7% tax in Massachusetts, but the state does not have a general sales tax at this rate. Instead, Massachusetts imposes a standard 6.25% sales tax on most retail purchases. However, certain taxes, such as the meals tax and excise taxes, can reach or exceed 7%.
Massachusetts Meals Tax
One of the most common instances where consumers encounter a 7% tax rate is when dining out. In Massachusetts, meals are subject to:
Statewide sales tax of 6.25%
Local meals tax of up to 0.75%, depending on the municipality
Total meals tax of up to 7%
For example, if you spend $50 at a restaurant in a city that imposes the full 0.75% local meals tax, your tax calculation would be:
State sales tax: $50 × 0.0625 = $3.13
Local meals tax: $50 × 0.0075 = $0.38
Total tax: $3.51
Final bill: $53.51
Excise Taxes That Exceed 7%
Certain products in Massachusetts are subject to excise taxes, which can be higher than the standard 6.25% sales tax. These include:
Alcohol – Excise taxes vary based on the type of beverage.
Cigarettes & Tobacco – Massachusetts imposes a high excise tax on tobacco products.
Hotel & Lodging Tax – The combined state and local lodging tax can reach 11.7% in some areas.
Check Massachusetts Excise Tax Guide for a complete breakdown of these taxes.
Understanding Tax Rates in Massachusetts
While Massachusetts does not have a general 7% sales tax, various taxes may apply depending on what you purchase. It's essential for consumers and businesses to be aware of these rates to avoid surprises at checkout.
