This month, Massachusetts will once again have a sales tax-free weekend August 8-9.
The annual summer shopping tradition goes back many years and began as a way to boost local business.
In 2018, the weekend of relief for shoppers became statutorily required as part of state legislators’ “Grand Bargain” that also raised the minimum wage, created a state paid family and medical leave program, and phased out time-and-a-half pay on Sundays and holidays.
The sales tax holiday for 2026 will be held on Saturday, August 8 and Sunday, August 9. Most retail items of up to $2,500, purchased in Massachusetts for personal use on these two days, will be exempt from collection of the state 6.25% sales tax.
The sales tax holiday applies only to eligible retail items bought online or in-person for personal use by residents. It does not apply to purchases of some specific goods or services, including:
- motor vehicles and motorboats
- meals
- alcoholic beverages, tobacco products and marijuana products
- telecommunications services like prepaid calls
- natural gas, steam, or electricity
- any single item whose price is more than $2,500
All businesses that normally make taxable sales of tangible property in Massachusetts or to purchasers in Massachusetts and are open for business on August 8 and 9 must take part in the sales tax holiday.
The tax-free holiday is considered a win-win for both taxpayers and tax collectors: amidst rising prices, driven in part by federally imposed tariffs, the sales tax holiday gives shoppers a much-needed break and the spike in consumer activity routinely boosts indirect tax revenues. According to the Department of Revenue, the 2025 sales tax holiday generated $3.65 million in indirect tax revenues due to increased economic activity. The holiday also encourages families shopping for back-to-school season to support local small businesses and retailers.
More information and answers to questions about the tax holiday are available on the Massachusetts Department of Revenue webpage at: https://www.mass.gov/info-details/sales-tax-holiday-frequently-asked-questions
