Who has to pay Massachusetts Use Tax?

Massachusetts imposes a 6.25% use tax on taxable purchases when Massachusetts sales tax was not paid at the time of purchase. Use tax is intended to ensure that taxable purchases are taxed consistently, regardless of where the purchase was made.

Program Entry

Massachusetts Return → Tax → Use Tax Due

Who Must Pay Use Tax?

You may owe Massachusetts use tax if you:

• Purchased taxable goods or services for use in Massachusetts;
• Did not pay Massachusetts sales tax at the time of purchase; and
• The seller did not collect and remit the tax to Massachusetts.

Common examples include:

• Online purchases where no Massachusetts sales tax was charged.
• Purchases made from out-of-state retailers.
• Purchases made while traveling outside Massachusetts and brought back for use in Massachusetts.

How is Use Tax Calculated?

Massachusetts use tax is generally calculated at the same rate as the Massachusetts sales tax rate, which is 6.25% of the purchase price of the taxable item or service.

Taxpayers may:

• Report the actual amount of use tax due based on receipts and purchase records; or
• Use the Massachusetts Use Tax Worksheet provided in the Form 1 Instructions if eligible.

What Purchases Are Subject to Use Tax?

Use tax generally applies to taxable items purchased for storage, use, or consumption in Massachusetts when sales tax was not paid.

Examples may include:

• Furniture
• Electronics
• Clothing items subject to Massachusetts sales tax
• Appliances
• Home improvement materials
• Certain taxable services

What Purchases Are Not Subject to Use Tax?

Use tax is generally not due if:

• Massachusetts sales tax was already paid.
• Another state's sales tax was paid and a credit is allowed under Massachusetts law.
• The purchase is exempt from Massachusetts sales tax.

The Following Information Can Be Added

Amount of Use Tax Due

Enter the amount of Massachusetts use tax owed for taxable purchases made during the tax year.

Notes

• Taxpayers are responsible for reporting use tax even if they do not receive a bill from Massachusetts.
• Keep receipts and purchase records to support any use tax calculation.
• Use tax is reported on the Massachusetts individual income tax return.
• The Massachusetts Form 1 Instructions include a Use Tax Worksheet that may be used to calculate the tax when detailed purchase records are not available.