Massachusetts Use Tax: What You Need to Know
Massachusetts imposes a use tax on goods purchased from out-of-state sellers when no sales tax was collected at the time of purchase. This tax ensures that residents do not gain an unfair advantage by purchasing goods from states without sales tax or where the tax was not collected.
What Is Massachusetts Use Tax?
Use tax applies to purchases made over the internet, by mail order, or from out-of-state retailers when no Massachusetts sales tax was charged. The rate is 6.25% of the purchase price.
Who Must Pay Use Tax?
- Residents of Massachusetts who purchase goods from out-of-state vendors.
- Part-year residents who made purchases while residing in Massachusetts.
- Individuals who receive goods shipped to Massachusetts and were not charged sales tax.
How to Calculate Use Tax
Use the following steps to calculate your use tax:
- Total all purchases made in 2025 while a Massachusetts resident that are subject to use tax.
- Multiply the total by 0.0625 (6.25%).
- Subtract any sales or use tax paid to another state or jurisdiction (up to 6.25% of the purchase price).
Example: If you purchased $1,000 worth of goods from an out-of-state vendor and paid no tax, your use tax would be $1,000 × 0.0625 = $62.50.
Reporting Use Tax on Your Return
Use tax is reported on Form 1 (Massachusetts Resident Income Tax Return) or Form 1-NR/PY (Nonresident/Part-Year Resident Income Tax Return). The calculation is done using the worksheet provided in the instructions:
- Form 1, Line 34 Worksheet: Use Tax Due on Internet, Mail Order and Other Out-of-State Purchases.
- Form 1-NR/PY, Line 38 Worksheet: Same as above, specifically for part-year residents.
Where to File
If you owe use tax, you must mail your return to:
Massachusetts Department of Revenue, PO Box 7003, Boston, MA 02204-7003
Use the light blue mailing label if available. If filing electronically, ensure you use the correct PO box as specified in the instructions.
Additional Resources
For more information and official forms, visit the Massachusetts Department of Revenue website or contact them directly:
- Website: mass.gov/dor/forms
- Toll-free in Massachusetts: (800) 392-6089
- Main number: (617) 887-6367
Source:
Form 1 Instructions
Form 1-NR/PY Instructions
Disclaimer: Always verify information with official Federal or State Department of Revenue Forms and Instructions.