What To Know About The Upcoming State Tax Free Holiday

MASSACHUSETTS — For two days next month, the state's 6.25 percent tax sales tax will disappear on certain items up to $2,500.

On August 13 and 14 this year, Massachusetts shoppers can ignore the add-on for most retail items - so you might want to get strategic if you're looking for that new couch or mattress.

While furniture stores and malls will be swamped, liquor stores, marijuana shops, car dealerships, boat shops, gas stations, and restaurants should remain the same as usual - for the tax-free holiday doesn't apply to them.

It also doesn't apply to:

• Telecommunications services
• Steam
• Electricity
• Any single item whose price is more than $2,500.

To uphold this law, retailers dropped their push to lower the state sales tax from 6.25 percent to 5 percent in 2018. This plan also raised the minimum wage from $11 an hour to $15 an hour over a five-year period, got rid of time-and-a-half pay for employees on Sundays and holidays, and launched the paid family and medical leave program.

The sales tax holiday applies to individuals purchasing retail items for personal use only. Purchases by corporations or other businesses—or purchases by individuals for business use—remain taxable.

Internet sales also will be tax-free if purchased during the holiday.

If you want to return the item or exchange what you bought during the holiday then no tax is due even if the exchange is made after the holiday. You will not be subject to the tax retroactively.