Massachusetts Contractor Sales Tax 2026

Massachusetts sales tax rate for contractors

• Combined rate: 6.25% (no local addition)
• Construction labor taxable: NO - real property labor is exempt
• Tax authority: Massachusetts Department of Revenue

How Massachusetts treats contractor labor

Real property labor exempt. Multiple-quantity threshold reporting requirements for tools and equipment.

Massachusetts-specific rules

Multi-step lien process: Notice of Contract → Statement of Account → Civil action. Strict deadlines at each step.

Massachusetts mechanics lien rights

Beyond sales tax, Massachusetts contractor billing must respect the mechanics lien deadline of 90 days from last work. Preliminary notice: Notice of contract must be recorded before lien claim.

Massachusetts contractor licensing

Massachusetts Office of Consumer Affairs (Home Improvement Contractor Registration) - required for licensed work. $150 registration + Construction Supervisor License $150. Board: https://www.mass.gov/orgs/office-of-consumer-affairs-and-business-regulation.

Automate Massachusetts sales tax with KaamCam

KaamCam applies the Massachusetts sales tax rate, labor tax treatment, and contractor license number to every invoice automatically. Stop tracking tax rules manually. $12 per seat per month. Start a free 7-day trial.

Massachusetts contractor resources by trade

• Massachusetts HVAC Cost
• Massachusetts Plumbing Cost
• Massachusetts Electrical Cost
• Massachusetts Roofing Cost
• Massachusetts Painting Cost
• Massachusetts Concrete Cost