MA
Massachusetts Small Business Tax Guide
The Massachusetts sales, income and corporate tax points small businesses meet first, in the Department of Revenue's words and dated as each page is. Not tax advice.
Disclaimer: This page is educational content only. Tax laws change, and your situation may differ. It is not legal, tax, or financial advice. Consult a qualified professional licensed in Massachusetts before making filing or planning decisions.
Tax landscape for small businesses
Massachusetts charges one statewide sales tax rate. The Massachusetts DOR's sales and use tax guide (Massachusetts, updated May 7, 2026) says: "The Massachusetts sales tax is 6.25% of the sales price or rental charge of tangible personal property". Once registered, "After you register with DOR, you will receive a Sales and Use Tax Registration Certificate (Form ST-1) for each business location." New registrants pay online: "All new businesses and existing businesses applying for an additional registration must file and make payments electronically, regardless of the amount of their annual tax liability."
For owners who report business income on a personal return, the Massachusetts DOR's tax rates page (Massachusetts, updated December 30, 2025) lists "5.00%" for wages and other income, and adds: "Tax year 2026: For income exceeding $1,107,750, there is an additional surtax of 4%." The same table lists "8.0%" of net income for general business and manufacturing corporations, with a "$456" minimum. Ask the DOR or a tax professional which of these applies to your entity.
Worked example (sample figures, not tax advice): a Massachusetts studio bills a client $800.00 for taxable goods. With the DOR's 6.25% rate (Massachusetts, updated May 7, 2026), $800.00 × 6.25% = $50.00 of tax, and the invoice comes to $850.00.
Tax overview
Each row lists a tax area and its notes. Confirm current figures with your state's tax agency or the IRS.
| Tax type | Rate or basis | Notes |
|---|---|---|
| Sales and use tax | "6.25%" (the Massachusetts DOR's sales and use tax guide (Massachusetts, updated May 7, 2026)) | Covers goods and the other items the DOR's guide lists. The same guide (Massachusetts, updated May 7, 2026) lists categories of sales that "are generally exempted from the sales/use tax", including resales, where "The seller must be given a Sales Tax Resale Certificate (Form ST-4) and retain it as proof the sale was exempt for the reasons stated on the certificate." |
| Personal income tax | "5.00%", plus a "4%" surtax above "$1,107,750" for tax year 2026 (the Massachusetts DOR's tax rates page (Massachusetts, updated December 30, 2025)) | Confirm with the DOR how it applies to business income on your return. The DOR's table dates its surtax lines by tax year but gives no separate tax year for the "5.00%" rate, which it lists among "the current tax rates in Massachusetts". |
| Corporate excise | "8.0%" of net income, "$456" minimum (the Massachusetts DOR's tax rates page (Massachusetts, updated December 30, 2025)) | The rate the DOR lists for general business and manufacturing corporations. The table gives no tax year for it. |
Filing requirements
This list isn't a complete checklist for your business.
Register and receive Form ST-1
The Massachusetts DOR's sales and use tax guide (Massachusetts, updated May 7, 2026) says: "After you register with DOR, you will receive a Sales and Use Tax Registration Certificate (Form ST-1) for each business location." The same guide counts as a vendor anyone who "Makes remote sales to Massachusetts customers that exceed $100,000 in a calendar year", and says vendors are responsible for "Registering with the Department of Revenue (DOR) to collect sales/use tax".
File and pay electronically
The same guide (Massachusetts, updated May 7, 2026) says: "All new businesses and existing businesses applying for an additional registration must file and make payments electronically, regardless of the amount of their annual tax liability."
Monthly returns
For monthly filers, the guide's due-date table (Massachusetts, updated May 7, 2026) says returns are "Due monthly on or before the 30th day following the month represented by the return".
Deductions and write-offs
Confirm with your state how it treats each item.
- The IRS self-employment tax page (IRS, In the US (federal), last reviewed or updated October 30, 2026) says: "You can deduct the employer-equivalent portion of your self-employment tax in figuring your adjusted gross income."
- The same IRS page says: "Under Section 2042 of the Small Business Jobs Act, a deduction, for income tax purposes, is allowed to self-employed individuals for the cost of health insurance."
- Whether Massachusetts allows the same deductions on a state return isn't stated here; check with the DOR or a tax professional.
Practical tips
- Show the sales tax as a separate amount on each invoice.
- About Form ST-1, the DOR's guide (Massachusetts, updated May 7, 2026) says: "The form must be displayed on the business premises where customers can easily see it."
- If you file monthly, put the DOR's due date for each return in your calendar.
- Keep receipts with each cost. Billed's expense tracking page says: "An expense in Billed records who you paid, when, how much and which category it belongs to, with the receipt attached to the same entry."
Frequently asked questions
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At a glance
| Tax | DOR wording |
|---|---|
| Sales and use tax | "6.25%" (sales and use tax guide, updated May 7, 2026) |
| Personal income tax | "5.00%" (tax rates page, updated December 30, 2025) |
| Corporate excise | "8.0%" of net income (tax rates page, updated December 30, 2025) |
| Federal self-employment tax | "The self-employment tax rate is 15.3%." (IRS, In the US (federal), last reviewed or updated October 30, 2026) |
When this isn't for you
Only Massachusetts' general sales, income and corporate excise rules for small businesses are covered here. Meals, marijuana, alcohol and other special taxes, payroll and multi-state questions aren't, and nothing here is tax advice; take your own case to the Massachusetts DOR or a tax professional.