10/08/2025
Save money legally and keep your books clean — here’s how Massachusetts sales tax exemptions work (and how to make sure you’re doing it right).
1 – What is a Sales Tax Exemption?
In Massachusetts, specific products and organizations are exempt from paying the 6.25% state sales tax. That means if you qualify, you can buy goods without paying sales tax — but you’ll need the proper documentation to prove it.
2 – Who Qualifies?
– Nonprofit organizations with IRS 501(c)(3) status
– Resellers purchasing inventory for resale (not for personal or business use)
– Manufacturers and contractors buying materials directly related to production
– Government agencies and schools
If you’re not sure which category your business fits in, don’t guess — it’s better to confirm with your bookkeeper or the Department of Revenue before making any tax-free purchases.
3 – The Golden Ticket: Form ST-2 and ST-5
To claim exemption, you’ll need a valid exemption certificate (Form ST-2 for nonprofits, ST-4 for resales, or ST-5 for government and qualified purchasers).
Make sure it’s filled out correctly — errors or missing information can lead to tax assessments later.
4 – Keep Records — Always
Massachusetts DOR can audit up to three years back, so keep your exemption certificates and receipts neatly filed. A digital copy in QuickBooks or Google Drive can save a lot of headaches down the road.
5 – How Maple Bookkeeping Services Can Help
At Maple Bookkeeping Services, we help Massachusetts businesses stay compliant while maximizing every legitimate tax exemption. From organizing receipts to setting up your sales tax tracking in QuickBooks, we’ve got your back — and your books.
📅 Ready to make sure you’re not leaving money on the table?
Book a free consultation today with our team at Maple Bookkeeping Services and keep your sales tax clean and compliant!
| Serving Boston, Plymouth, Cape Cod & all Massachusetts towns
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Patricia de Oliveira
Professional Bookkeeper