Massachusetts Tax Nexus

Businesses with nexus in Massachusetts are required to register with the Massachusetts Department of Revenue and to charge, collect, and remit the appropriate tax.

Generally, a business has nexus in Massachusetts when it has a physical presence there, such as a retail store, warehouse, inventory, or the regular presence of traveling salespeople or representatives. However, out-of-state sellers can also establish nexus in the ways described below.

Massachusetts nexus for out-of-state sellers

According to the Massachusetts Department of Revenue, any out-of-state sellers who meet any of the vendor definitions listed below generally have the same responsibilities as Massachusetts vendors. A business is a vendor for sales and use tax purposes if it regularly sells, rents or leases tangible personal property or telecommunications services that are subject to the Massachusetts sales tax and engages in any of the following activities:

  • Sells, rents or leases in Massachusetts generally
  • Purchases tangible personal property or telecommunications services for resale in Massachusetts
  • Acquires parts to manufacture goods for sale or resale in Massachusetts
  • Has a business location in Massachusetts
  • Has representatives soliciting orders for tangible personal property or telecommunications services within Massachusetts
  • Sells to Massachusetts residents or businesses and delivers, repairs or installs goods or telecommunications services within the Commonwealth

See the Massachusetts Department of Revenue: A Guide to Sales and Use Tax.