Is There Tax on Food in Massachusetts? What You Need to Know

When it comes to buying food in Massachusetts, not everything is as straightforward as it seems. While groceries are often exempt from sales tax, certain items—like prepared meals, soda, or bakery goods served with utensils—can trigger taxation.

Whether you’re a Massachusetts resident looking to save at the grocery store, a restaurant owner navigating sales tax compliance, or a tax professional advising clients, this comprehensive guide breaks down when food is taxed, which items qualify for exemptions, and how Massachusetts compares to other states.

Are Groceries Taxed in Massachusetts?

Massachusetts generally exempts food intended for home consumption from its 6.25% sales tax. Basic grocery items such as fresh fruits, vegetables, raw meat, poultry, seafood, dairy products, and eggs are not taxed. Pantry staples like rice, pasta, flour, canned goods, and cooking oil are also tax-free. Infant formula and unprepared nutritional supplements qualify for the exemption as well.

Unheated bakery items—like bread, muffins, and bagels—are exempt too, provided they’re sold without utensils or packaging that encourages immediate consumption.

However, some food items are taxable. Prepared or ready-to-eat meals—such as rotisserie chickens, hot bar items, deli sandwiches, and fresh salads—are subject to the 6.25% sales tax, even when sold at grocery stores. The same applies to candy, soda, energy drinks, and alcoholic beverages.

As a general rule, if the item is heated, prepared, or intended to be eaten immediately, it’s likely taxable—even if purchased at a grocery store.

Are Meals Taxable in Massachusetts?

Yes. Massachusetts applies a 6.25% sales tax to prepared meals, regardless of whether they are consumed on-site, taken to-go, or delivered.

What Qualifies as a Taxable Meal:

• Meals sold at restaurants, cafés, fast food locations, and food trucks.

• Prepared foods from grocery store delis, including hot entrees, fresh sandwiches, and pre-packaged salads.

• Any food or drink served with utensils, napkins, or packaging that suggests it is meant to be consumed immediately.

Exemptions:

• Unopened, packaged food items.

• Unheated bakery goods sold without utensils.

• Frozen meals and do-it-yourself meal kits that are not ready to eat.

A common point of confusion is that location doesn't matter—if it’s prepared and ready to eat, it’s likely taxable, even at a grocery store or gas station.

What Is Taxed at 12% in Massachusetts?

Certain goods and services in Massachusetts are taxed at higher rates than the general sales tax.

Higher Tax Rates Apply To:

• Short-term rentals, such as Airbnb properties and hotel rooms, typically taxed at 12% or higher depending on local municipal rates.

• Alcoholic beverages sold for on-premise consumption, which may include additional local excise taxes.

• Meals or beverages sold at entertainment venues or event spaces may also carry combined rates.

Which States Don’t Tax Groceries?

Massachusetts is among many states that provide some level of exemption for grocery items, but the extent of that exemption varies across the U.S.

States with No State Sales Tax:

• Alaska

• Delaware

• Montana

• New Hampshire

• Oregon

States with Full Grocery Sales Tax Exemptions:

• Minnesota

• Pennsylvania

• Rhode Island

• Vermont

How Massachusetts Compares:

Massachusetts exempts most grocery items but taxes prepared foods, snacks, and sugary beverages. This places it somewhere in the middle when compared to states that either fully exempt groceries or impose broad food taxes.

Massachusetts Tax-Free Weekend and Food Savings Tips

Annual Tax-Free Weekend:

Held in August, this annual event exempts most retail purchases under $2,500 from the 6.25% sales tax. While groceries are already exempt, it’s a good time to buy kitchen appliances and meal prep equipment tax-free.

Tips to Save on Taxed Food Items:

• Choose raw ingredients over prepared foods

• Use SNAP/EBT or WIC benefits, which are always tax-exempt and apply to eligible grocery purchases

• Take advantage of store sales, loyalty programs, and coupons on non-taxable grocery staples

Conclusion

Understanding when food is taxed in Massachusetts can help both consumers and businesses avoid unnecessary expenses and stay compliant with state laws. While groceries are largely tax-free, prepared meals, snacks, and certain beverages are subject to sales tax.

If you're a restaurant, retailer, or business owner in Massachusetts, it’s important to understand the complexities of food-related sales tax. Partnering with a tax professional can help you stay compliant and avoid costly mistakes.

FAQs

Which states don’t tax groceries?

Alaska, Delaware, Montana, New Hampshire, and Oregon have no sales tax. Others like Minnesota and Vermont exempt grocery items completely.

Are restaurant meals taxable in Massachusetts?

Yes. All prepared meals—including those from restaurants, cafés, and grocery store delis—are taxed at 6.25%.

What is taxed at 12% in Massachusetts?

Short-term rentals, hotel rooms, and alcoholic beverages served in restaurants may be taxed at 12% or higher depending on local rates.