Temporary Pain Relief: Tax Holiday Aug 10-11

Worried, inflation-battered consumers will soon catch a break. This week, the Massachusetts Legislature approved August 10 and August 11 as a sales tax holiday weekend for Massachusetts. On those days, the Massachusetts sales tax of 6.25% will be suspended for most items that retail for less than $2,500.

The holiday welcomes Massachusetts residents to visit retailers and small businesses around the state. A spike in consumer activity routinely boosts indirect tax revenues. According to the Department of Revenue, during the 2023 sales tax holiday, indirect tax revenues due to increased economic activity were approximately $3.54 million.

“The sales tax holiday is a great opportunity for residents to get out and support the local businesses in their community and get some shopping done during a time of year when people are gearing up for the fall,” said Senate President Karen E. Spilka (D-Ashland). “I’m glad we worked together in the Legislature to get this done for residents again this year. I’m thankful to Senator Moran for leading the initiative in the Senate, all of my Senate colleagues, Speaker Mariano, and our partners in the House.”

“Each year, the Legislature’s temporary suspension of the sales tax aims to boost revenue for small businesses and enhance affordability for consumers,” said House Speaker Ronald J. Mariano (D-Quincy). “I want to thank my colleagues in the House, along with Senate President Spilka and our partners in the Senate, for their annual support for this economic development initiative.”

“The sales tax holiday provides significant relief to families during a time of year where their checkbooks are already stretched from the purchase of back-to-school supplies and other family expenses,” said Senator Susan L. Moran (D-Falmouth). “It's also a vital tool in bolstering our economy, especially for our cherished small businesses, who often operate on thin margins.”

“I was happy to sponsor the legislation establishing this year’s sales tax holiday. This bill emphasizes the legislature’s commitment to supporting local jobs and businesses,” said State Representative Jerry A. Parisella (D-Beverly). “Consumers have faced higher prices for goods due to inflation, so this tax-free weekend is a great opportunity to provide individuals, families and businesses across the Commonwealth with some relief.”