Massachusetts Resale Certificate Guide 2026: How to Get Yours

Massachusetts is a powerhouse economy driven by healthcare, technology, higher education, finance, and tourism. With a flat 6.25% sales tax rate and no local add-ons, the state's tax system is simpler than many of its neighbors. However, Massachusetts has strict rules about resale certificate documentation and does not accept the MTC Uniform Certificate. If you buy inventory for resale in Massachusetts, you need Form ST-4, the Sales Tax Resale Certificate. This guide covers the complete process for 2026.

Massachusetts Sales Tax Basics

State Rate

The Massachusetts sales tax rate is 6.25%. This is a flat rate with no local sales taxes. Every location in Massachusetts charges the same rate, which makes compliance and tax calculations straightforward.

What Is Taxable in Massachusetts?

Massachusetts has a relatively broad sales tax base, with some notable exemptions:

• Most tangible personal property is taxable
• Clothing under $175 is exempt. Individual clothing items priced at $175 or less are tax-free. The portion of a clothing item's price that exceeds $175 is taxable. For example, a $200 jacket is taxed only on the $25 above the threshold.
• Groceries (food sold for off-premises consumption) are exempt
• Prescription medications are exempt
• Newspapers and magazines are exempt
• Gasoline is exempt from sales tax (but subject to excise tax)
• Meals (prepared food) are taxable at 6.25%, and some municipalities add a local meals tax of up to 0.75%
• Digital products: Certain digital goods like software, streaming services, and electronically transferred content may be taxable

The $175 Clothing Threshold

Massachusetts's clothing exemption works differently from states like Pennsylvania or New Jersey, which exempt all clothing. In Massachusetts, only clothing items priced at $175 or less are exempt. For items over $175, the tax applies only to the amount above the threshold. This is particularly relevant for apparel resellers carrying higher-priced goods.

What Form Do You Need?

Massachusetts uses Form ST-4, the Sales Tax Resale Certificate, issued by the Massachusetts Department of Revenue (DOR).

About Form ST-4

The ST-4 is a dedicated resale certificate form (not a multi-purpose exemption form like in some states). It is specifically designed for purchases of tangible personal property for resale.

Key fields include:

• Purchaser's name, address, and phone number
• Massachusetts sales tax registration number
• Type of tangible personal property being purchased for resale
• Purchaser's signature and date

Massachusetts Does NOT Accept the MTC Certificate

This is a critical distinction. Massachusetts does not accept the Multistate Tax Commission (MTC) Uniform Sales and Use Tax Resale Certificate. If an out-of-state buyer presents an MTC form to a Massachusetts vendor, the vendor should not accept it. Only the Massachusetts-specific ST-4 (or the ST-4A for out-of-state purchasers) is valid.

Form ST-4A: For Out-of-State Purchasers

If you are an out-of-state business buying goods in Massachusetts for resale outside the state, you use Form ST-4A instead of the ST-4. The ST-4A requires your home state's sales tax registration number and certifies that the goods will be resold outside Massachusetts.

Where to Get the Forms

Both Form ST-4 and ST-4A are available as free downloads from the Massachusetts DOR website.

Who Needs a Massachusetts Resale Certificate?

You need a Massachusetts resale certificate if you purchase tangible personal property for resale. Qualifying businesses include:

Retailers buying inventory for sale in physical stores, online platforms, pop-up shops, or farmers markets.

Wholesalers and distributors purchasing goods for redistribution to retailers or other businesses.

Online sellers registered with the Massachusetts DOR who buy inventory for resale through Amazon, eBay, Etsy, Shopify, or other platforms.

Manufacturers buying raw materials and components that become part of a product manufactured for sale.

Restaurants and caterers purchasing food and beverage ingredients that will be prepared and served to customers.

Who Does NOT Qualify

• Consumers buying for personal use
• Businesses purchasing supplies, equipment, or office furnishings for internal operations
• Contractors buying materials for installation into real property
• Anyone without valid Massachusetts sales tax registration (or valid out-of-state registration for ST-4A)

How to Apply for a Massachusetts Resale Certificate

Step 1: Register for a Massachusetts Sales Tax Account

You must register with the Massachusetts Department of Revenue to collect sales tax before you can issue a valid ST-4.

What you need to register:

• Federal EIN or SSN
• Business legal name and trade name
• Business address
• Type of entity (sole proprietor, LLC, corporation, partnership)
• Description of business activities
• Expected start date of taxable sales
• Estimated monthly sales

Registration is free. Apply online through MassTaxConnect, the DOR's online portal.

Processing time: Typically 3 to 5 business days for online applications.

Step 2: Complete Form ST-4

Download the ST-4 from the DOR website. Fill in your business information, including your Massachusetts sales tax registration number. Describe the types of tangible personal property you will purchase for resale.

Step 3: Provide the Certificate to Your Suppliers

Give a completed ST-4 to each vendor. The vendor retains the certificate and does not charge sales tax on qualifying resale purchases.

Need help getting set up? We handle the entire process from registration to certificate completion.

Get Your Resale Certificate -->

Multi-State Considerations

Massachusetts takes a strict approach to multi-state certificate acceptance.

No MTC or SST Certificate Acceptance

Massachusetts is not a member of the Streamlined Sales Tax (SST) agreement and does not accept the MTC Uniform Certificate. This means:

• Out-of-state buyers must use the Massachusetts Form ST-4A
• You cannot present a generic multi-state certificate to a Massachusetts vendor
• Massachusetts vendors should reject MTC forms and request the proper Massachusetts form

Out-of-State Sellers

Massachusetts's economic nexus threshold is $100,000 in sales to Massachusetts customers in the prior calendar year. If you exceed this threshold, you must register, collect, and remit Massachusetts sales tax.

Use Tax

If you purchase goods from a vendor who does not collect Massachusetts sales tax, you owe Massachusetts use tax at 6.25% on those purchases (unless the items are for resale). Massachusetts actively enforces use tax compliance and includes a use tax line on the state income tax return for individuals.

For more on multi-state rules, see our multi-state resale certificate guide.

Common Mistakes with Massachusetts Resale Certificates

Mistake 1: Presenting an MTC Certificate to a Massachusetts Vendor

Massachusetts does not accept the MTC form. If you are an out-of-state buyer, you must use Form ST-4A. If you are a Massachusetts-registered business, you must use the ST-4. Presenting the wrong form can result in the vendor charging you full sales tax.

Mistake 2: Using the ST-4 for Non-Resale Purchases

Purchasing equipment, office supplies, or personal items with a resale certificate is illegal. The DOR audits for this and imposes penalties including back taxes, interest, and fines.

Mistake 3: Ignoring the Clothing Threshold

The $175 clothing exemption creates confusion for apparel businesses. If you are buying clothing inventory for resale, the resale exemption covers the full purchase regardless of price. The $175 threshold only applies to end consumers. However, if you buy a $300 jacket for your own use, only the amount over $175 is taxable. Do not confuse the consumer exemption with the resale exemption.

Mistake 4: Failing to Collect ST-4 Forms from Buyers

If you are the seller, you must collect and retain ST-4 certificates from every buyer who claims the resale exemption. Without a certificate on file, you may be held liable for uncollected tax during an audit.

Massachusetts-Specific Rules You Should Know

Meals Tax

Massachusetts imposes the standard 6.25% sales tax on meals (prepared food sold by restaurants, cafes, caterers, and food trucks). Additionally, municipalities can impose a local meals tax of up to 0.75%, bringing the total meals tax to as high as 7% in some cities and towns. Boston, Cambridge, and many other municipalities have adopted the local meals tax.

If you operate a food business, be aware that the meals tax and the resale exemption interact. Food ingredients purchased for preparation and resale as meals qualify for the resale exemption using the ST-4.

Motor Vehicle Sales Tax

Massachusetts imposes a 6.25% sales tax on motor vehicle purchases. Motor vehicle dealers use a resale certificate when purchasing vehicles for their dealer inventory, but individuals and non-dealer businesses cannot use a resale certificate for vehicle purchases.

Technology and Software

Massachusetts taxes pre-written (canned) software whether delivered physically or electronically. Custom software specifically designed for a single customer is generally not taxable. Software as a Service (SaaS) is generally taxable if it is considered a transfer of pre-written software. This is an evolving area that affects tech resellers.

Short-Term Rentals

Massachusetts imposes sales tax plus additional excise taxes on short-term rentals (less than 31 days), including traditional hotels and vacation rentals. If you are in the hospitality industry, these taxes are in addition to the standard 6.25% sales tax.

Vendor Filing Obligations

Massachusetts requires most sales tax vendors to file returns monthly. Vendors with less than $1,200 in annual sales tax liability can file quarterly. Annual filing is available for very small businesses. Late filing penalties are 1% per month on unpaid tax, up to 25%.

How Much Can You Save?

At Massachusetts's flat 6.25% rate, the savings are consistent statewide.

Calculate your exact savings with our savings calculator.

Massachusetts Resale Certificate FAQs

Q: Does the Massachusetts ST-4 expire? A: The ST-4 does not have a printed expiration date. It remains valid as long as the buyer's Massachusetts sales tax registration is active and the information is accurate.

Q: Can out-of-state businesses use the ST-4? A: Out-of-state businesses should use Form ST-4A, which is specifically designed for out-of-state purchasers buying goods in Massachusetts for resale outside the state.

Q: Is there a fee for Massachusetts sales tax registration? A: No. Massachusetts does not charge a fee for sales tax registration.

Q: Does Massachusetts accept the SST certificate? A: No. Massachusetts is not an SST member and does not accept SST certificates. Use the ST-4 or ST-4A.

Q: Are digital products taxable in Massachusetts? A: Pre-written software and some digital goods are taxable. Custom software is generally exempt. The treatment of SaaS and other digital products continues to evolve.

Get Started with Your Massachusetts Resale Certificate

Massachusetts's flat rate and straightforward registration process make getting your resale certificate relatively simple. The key is using the correct Massachusetts-specific form, since the state does not accept MTC or SST alternatives.

• Expert registration through MassTaxConnect
• Help completing the ST-4 or ST-4A
• Ongoing compliance support

Get Your Resale Certificate -->

For more details on Massachusetts requirements, visit our Massachusetts state page.

Massachusetts requires its own specific resale certificate form, and that strictness extends to enforcement. Get properly registered, use the correct ST-4 form, and keep your documentation organized. The 6.25% you save on every inventory purchase is well worth the effort.

Related Articles

• What Is a Resale Certificate? - Start with the fundamentals of resale certificates.
• Resale Certificate vs. Sales Tax Permit - Understand the relationship between your sales tax registration and your resale certificate.
• Resale Certificate for Etsy Sellers - Massachusetts Etsy sellers have specific considerations for resale certificates.