In Massachusetts, sales tax is charged on most goods. Clothing and footwear costing $175 or less is exempt. Items over $175 are taxed at 6.25%. Precious metals and jewelry are taxed. Tax must be collected on copper, platinum, palladium and any jewelry purchase under $1,000.
Avoiding Sales Tax
To avoid sales tax on Amazon buy from sellers who don’t charge it. Check before paying to ensure no tax was added. Amazon’s wedding registry gives 20% off to brides and grooms.
You can avoid sales tax on diamonds by buying it from New Jersey and shipping it to a Massachusetts residence address.
Jewelry, Capital Gains, and Estate Taxes
If selling jewelry, taxes depend on how long it has been owned. If over a year, long term capital gains tax applies at a rate of 0%, 15%, or 20%.
When inherited, jewelry isn’t subject to estate taxes since it’s personal property. Jewelry can be insured for full value.
Use Tax
Use tax in Massachusetts is 6.25%. It applies to out-of-state purchases used in Massachusetts without paying the 6.25% sales tax. Use tax is paid directly to Massachusetts, not the seller.
Tax Exemptions in Precious Metals
The tax code of Massachusetts states that all purchases of more than $1,000 are exempt from sales tax. This excludes a number of coins, bars, precious metal types, and even paper currency but still covers a wide range of investment-grade silver and gold.
Tax on Clothing and Footwear
In Massachusetts, clothing and footwear items at $175 or less are exempt from sales tax. Items above $175 are taxable at the statewide rate.
Massachusetts Sales Tax Calculator
You can use this simple Massachusetts sales tax calculator to determine the sales tax owed, and total price including tax, by entering the sales tax rate and the purchase price of the item. The base rate of 6.25% is set by default.
Tax Law Summary
In the state of Massachusetts, the laws regarding tax on shipping and handling are relatively simple.
Frequently Asked Questions
Is there sales tax on jewelry in Massachusetts?
Yes, jewelry is taxed if the purchase is under $1,000 in Massachusetts.
What items are not taxed in Massachusetts?
Clothing and footwear costing $175 or less are exempt from sales tax, as are purchases of precious metals and jewelry over $1,000.