Massachusetts imposes a room occupancy excise tax of 5.7 percent on rooms rented for $15 or more per day. Each Massachusetts city and town has the option of levying up to an additional 6 percent (6.5 percent in the city of Boston) (see TIR 09-13). In addition, Massachusetts imposes a convention center financing fee (see TIR 05-1) of 2.75 percent on room occupancy in hotels, motels, or other lodging establishments in Boston, Cambridge, Chicopee, Springfield, West Springfield, and Worcester.
The total tax rate is applied only to the rent received from an individual who occupies the lodgings for 90 consecutive days or less. Generally, you are responsible for collecting and remitting this tax if you are an individual or business operating a hotel, motel, lodging house, or a private club offering sleeping accommodations, and the relationship between you and the occupant is not that of landlord and tenant.
Return filing and tax payment methods depend on each entity's combined trustee tax liability for the preceding year. A general filing and payment chart is provided below. Pay particular attention to the Please note area at the bottom of the the chart. Entities may use MassTaxConnect to comply with their electronic filing and payment requirements. For more information concerning the Department's electronic filing and payment requirements refer to TIR 04-30.
Room Occupancy Tax:
Summary of Filing Requirements & Payment Options - *(See Important Note)
|Annual amount collected||Filing frequency and payment requirements||*Return filing methods|
|All amounts||Monthly, 20 days after the end of the filing period. Payment is due with return.||MassTaxConnect||♦||♦|
|(Boston, Cambridge, Chicopee, Springfield, West Springfield, & Worcester)||♦||♦||♦|
|*Important Note: Electronic filing requirements are in place for this tax type. Refer to TIR 04-30 for detailed information. Learn more electronic filing and payment methods, visit MassTaxConnect.|