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4 things to know about Tax Free Weekend

On Aug. 9 and 10, eligible items will be exempt from sales tax.

Lauren Folino helps her husband Luke Blaeser carry out their new television while shopping during Massachusett’s annual tax free weekend in Saugus. rin Clark/The Boston Globe

Massachusetts shoppers won’t pay sales tax this weekend, Aug. 9-10.

For one weekend each year, eligible items for personal use that are worth less than $2,500 are not taxed the typical 6.25%.

In 2024, the sales tax holiday generated $3.45 million in indirect tax revenues due to increased economic activity, according to the Department of Revenue.

“Lowering costs for Massachusetts residents and supporting local businesses is critical for our communities in this time of economic uncertainty,” Sen. President Karen Spilka said in a statement. 

House Speaker Ronald Mariano added, “This year’s temporary suspension of sales tax will bring consumers needed economic relief while boosting revenue for small businesses and retailers.”

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With August being a slow month for businesses, former Governor Baker made tax-free weekend an annual occurrence in 2018.

What qualifies for the tax free holiday

Any item purchased for personal use is eligible for the sales tax exemption.

Online purchases must be bought on the correct dates during Eastern Daylight Time, even if it will be delivered after the weekend, to qualify for the exemption.

Items can be rented for up to 30 days, but must be paid for in full during the tax holiday for the exemption.

Purchases not eligible for the sales tax holiday

Layaway items and items purchased for corporations or business purposes are subject to the typical 6.25% sales tax.

These purchases are not eligible:

  • Meals
  • Motor vehicles
  • Motorboats
  • Telecommunications services
  • Gas
  • Steam
  • Electricity
  • Tobacco products
  • Marijuana or marijuana products
  • Alcoholic beverages
  • Any single item whose price is more than $2,500

Limitations for the sales tax holiday

Shoppers can purchase an infinite amount of items individually priced under $2,500 and be eligible for the tax exemption. Items that cost more than $2,500 are subject to typical tax.

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For clothing, an item under $175 is exempt from sales tax.

Consumers looking to evade taxes on a prior purchase, including canceling or repurchasing an order, may face restrictions.

What happens after the tax free weekend

After tax free weekend, purchased items are not subject to sales tax if returned or exchanged.

If, for some reason, sales tax is charged to an item purchased during the tax holiday, it is the responsibility of the seller to refund the unnecessary tax charge.

Individuals are required to report the sales amount of the items they bought during the two days when reporting taxes for the month by writing “exempt sales” on line 2 of the August Sales and Use Tax Return.

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