Here’s When You Have To Pay Tax On Food And Clothing In Massachusetts

My friend Mike and I were having a conversation about state income tax the other day. Some states have it, some do not. Massachusetts does, Florida, for example, does not.

It seems as though, whether federal or state, the government will get their money one way or another. This, of course is debatable.

Why Do They Call Massachusetts, 'Taxachusetts'?

What I found was simply outdated slang. Although, we did just pass a 4% tax on anyone earning more than a million dollars a year.

The surtax revived memories from decades ago when the tax burden was so high that citizens' groups dubbed the commonwealth “Taxachusetts.” Back in the 1970s, the share of income going to state and local taxes amounted to almost 14%, the third-highest in the nation. Massachusetts now has a flat 5% income tax. -forbes.com

What Is Taxed In Massachusetts?

I feel like sometimes I never know what is taxed and what isn't. For example, if you're buying recreational cannabis, the standard 6.25% applies, for medical use it does not.

Goods that are subject to sales tax in Massachusetts include physical property, like furniture, home appliances, and motor vehicles. Prescription medicine, groceries, gasoline, and clothing are all tax-exempt. Some services in Massachusetts are subject to sales tax. -howtostartanllc.com

What Isn't Taxed In Massachusetts?

For the purpose of this post will talk about food and clothing.

Sales of food for human consumption (other than meals sold by a restaurant) and clothing costing $175 or less. For items that cost more than $175, sales tax is only due on the amount over $175 per item. -mass.gov

So, if you're at the grocery store, you don't not have to pay sales tax on items. If you're out to eat, you do.

If you're shopping for clothing and an item is $175 or more, you are taxed on the amount greater than $175. For example, something that costs $200, you are taxed on $25.

If your amount of clothing totals more than $175, but each individual item is less than $175, you are not subject to the 6.25% tax rate.

I hope you found this post informative.