Is There Tax on Groceries in Massachusetts?

When shopping for groceries in Massachusetts, many consumers wonder whether they need to pay sales tax. The good news is that most groceries are exempt from sales tax in the state. However, there are exceptions, particularly when it comes to prepared foods and certain beverages.

Tax-Exempt Grocery Items

Massachusetts follows general guidelines that exempt most food products meant for home consumption from sales tax. These include:

• Fresh fruits and vegetables

• Meat, poultry, and seafood

• Dairy products

• Canned and packaged foods

• Breads and cereals

• Cooking ingredients such as flour, sugar, and oils

Taxable Grocery Items: Prepared Foods and Beverages

While most groceries are tax-free, some food items are subject to sales tax in Massachusetts. These include:

• Prepared Foods – Any food that is heated, cooked, or made ready-to-eat at the point of sale is taxable. This includes restaurant meals, deli sandwiches, and hot foods.

• Soft Drinks & Certain Beverages – Carbonated beverages, sports drinks, and some flavored waters are taxable.

• Catering & Takeout – Meals purchased from a restaurant, catering service, or takeout establishment are taxed at 6.25%.

Additional Considerations

• Grocery Store Purchases vs. Restaurants: If you buy a loaf of bread at a grocery store, it's tax-free, but if you order a sandwich at a deli, it is taxable.

• Meal Tax: If you purchase prepared food, it may be subject to additional local meals taxes beyond the 6.25% state tax.

Conclusion

Massachusetts does not tax most grocery items, but prepared foods, restaurant meals, and certain beverages are taxable. Understanding these distinctions can help shoppers and business owners comply with tax regulations.

For a full breakdown of taxable and non-taxable grocery items, visit the Complete Massachusetts Grocery Tax Guide.