Sales Tax on Telecommunications

Telecommunications purchases in Massachusetts are charged a 6.25% sales tax. Learn about the various kinds of telecommunications services and how to register to remit sales tax with MassTaxConnect.

Overview

Taxable telecommunications services include the following:

  • Telephone services (voice and non-voice)
  • Per minute or other separately stated charges for long distance telephone calls, whether the call is online or not
  • Telegraph services
  • Beeper, paging, and similar services
  • Voice mail services
  • Fax services
  • Teleconferencing services
  • Auxiliary services such as call-forwarding and call-waiting
  • Cellular telephone service including roaming charges
  • Charges for your right to use any telecommunications service, whether you use the service in a particular billing period or not.
    • Such charges include fees structured as recurring monthly charges for:
      • Telephone service
      • Set-up or activation charges
      • Access charges
      • Membership fees.

For more information see a Guide to Sales and Use Tax on Telecommunications.

To register and collect

To register to collect sales tax on Telecommunications, you need to register your business with MassTaxConnect.

Exemption of residential telephone services

An exemption of $30 per month applies to certain residential telephone services. Only one $30 exemption may be claimed per month by a residential customer at a service address.

Residential telephone service generally includes:

  • Service provided to an individual for personal use at his or her residential address.

Individuals who live in places such as schools or nursing homes, are eligible for this exemption if the service is:

  • Provided to them
  • Paid for by them.

Telephone service provided to a business is not residential service even if the business is located in an individual's home.

If an otherwise residential telephone is used for business purposes, the business must file a Form ST-10, Business Use Tax Return, and pay tax.

Residential users are not required to present exemption certificates.

To learn more about non-taxable and exempt Telecommunications services, see a Guide to Sales and Use Tax on Telecommunications.

Additional Resources

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