Massachusetts' Tax Free Weekend Starts Aug. 14

This year’s sales tax holiday will take place during the weekend of Saturday, Aug. 14 and Sunday, Aug. 15. On these days, consumers in Massachusetts will get a break from the state's 6.25% sales tax for retail items purchased for personal use, as long as the item's cost does not exceed $2,500.

Shoppers can potentially save up to $156 per item during the tax-free weekend — but they're not the only ones who stand to benefit from the tax break, according to a 2017 study from the Board of Governors of the Federal Reserve. The study found that the sales tax holiday provided a boost to retail spending, which could be especially welcome this year for businesses hit hard by the pandemic.

In June, Gov. Charlie Baker proposed expanding the tax-free weekend into a two-month sales tax vacation during August and September in an effort to drive up sales for local businesses. The proposal was referred to a joint legislative committee on revenue but hasn’t been acted on further.

Some purchases, such as meals, tobacco products and motor vehicles, do not qualify for the sales tax holiday exemption. Online purchases will be eligible for the exemption as long as they are ordered and paid for during the sales tax holiday weekend, before midnight on Sunday, Eastern time, regardless of when they are delivered.