Martha’s Vineyard Sales Tax Rates and Exemptions

The Martha’s Vineyard sales tax is the Massachusetts statewide rate of 6.25% on retail goods, with no extra local sales tax added by island towns. Where the bill grows is dining and lodging: restaurant meals are taxed at 7%, and overnight stays run roughly 12.45% to 14.45% depending on the town and property type. Groceries, prescriptions, and clothing under $175 are exempt.

The 6.25% Rate on Retail Goods

Every retail purchase of tangible goods on the island is taxed at 6.25%, the flat rate set by Massachusetts General Laws Chapter 64H.1General Court of Massachusetts. Massachusetts General Laws Chapter 64H – Tax on Retail Sales of Certain Tangible Personal Property Massachusetts does not let cities or towns tack on their own general sales tax, so hardware, electronics, furniture, and souvenirs cost the same in Edgartown, Oak Bluffs, Vineyard Haven, or anywhere else on the Vineyard.

Meals Tax at 7%

Restaurant meals cost slightly more in tax than regular retail because island towns have adopted the local option meals excise under Chapter 64L. That local piece adds 0.75% on top of the 6.25% state meals tax, for a combined 7% on prepared food at restaurants, cafes, and takeout counters.2Massachusetts Department of Revenue. TIR 09-13: Local Option Sales Tax on Meals and Local Option Room Occupancy Excise Rate Increase The 0.75% stays with the town where you ate.

If you order delivery, separately stated delivery charges and tips are excluded from the taxable price of the meal.3Massachusetts Department of Revenue. Sales Tax on Meals Service charges that don’t go entirely to wait staff are included.

Lodging and Short-Term Rentals

Overnight stays are where taxes stack up fast. Three separate levies apply to hotels, motels, bed-and-breakfast establishments, and short-term vacation rentals:

Together these produce a total occupancy tax between roughly 12.45% and 14.45%. Towns charging the full 6% local option hit the high end. All three taxes apply to the total rent, which under the statute includes cleaning fees, service charges, and any other consideration charged by the operator.4General Court of Massachusetts. Massachusetts General Laws Chapter 64G – Room Occupancy Excise

Airbnb, VRBO, and Direct Bookings

Vacation rentals booked through platforms like Airbnb and VRBO are fully subject to these taxes. Since July 2019, platforms that collect rent on behalf of an owner have been required to collect and remit all applicable occupancy taxes to the Department of Revenue.7Massachusetts Department of Revenue. Room Occupancy Excise Tax Book directly with an owner not on a platform, and that owner must register with the state and handle collection.

Short-term rentals may also face a community impact fee of up to 3%, which towns can impose on operators who list more than one property or who rent units in an owner-occupied two- or three-family house.7Massachusetts Department of Revenue. Room Occupancy Excise Tax Where it applies, the effective rate climbs higher still.

When Occupancy Tax Doesn’t Apply

A property rented for 14 days or fewer in a calendar year owes no occupancy tax.7Massachusetts Department of Revenue. Room Occupancy Excise Tax Owner-occupied bed-and-breakfast homes with no more than three rooms, where breakfast is included and all stays are reserved in advance, are also outside the tax and the state registration requirement. Rent below $15 per day is exempt as well.5General Court of Massachusetts. Massachusetts General Laws Chapter 64G Section 3A – Local Option Room Occupancy Excise

What’s Exempt From Sales Tax

Several everyday categories are completely exempt from the 6.25% sales tax. That matters if you’re stocking a rental house or buying clothes on vacation.

Clothing Under $175

Clothing and footwear priced at $175 or less per item are tax-free.8General Court of Massachusetts. Massachusetts General Laws Chapter 64H Section 6 – Exemptions For a single item over $175, tax applies only to the amount above the threshold; a $225 jacket is taxed on $50. The exemption does not cover specialty athletic gear or protective clothing not normally worn outside its intended activity.9Massachusetts Governor’s Budget. 3.103 Exemption for Clothing

Groceries

Food bought for home consumption is exempt. That covers the obvious staples and also items that many other states tax: candy, confectionery, and snacks are treated as exempt food products in Massachusetts when bought at a store rather than served by a restaurant.10Massachusetts Department of Revenue. 830 CMR 64H.6.5: Sales Tax on Meals Alcoholic beverages and tobacco are not exempt.8General Court of Massachusetts. Massachusetts General Laws Chapter 64H Section 6 – Exemptions The dividing line is preparation: groceries you cook yourself are exempt, food a restaurant prepares and serves is a taxable meal.

Medications and Medical Devices

Prescription drugs, over-the-counter medications, insulin, and medical devices such as wheelchairs, crutches, and equipment designed to treat or prevent medical conditions are all exempt.8General Court of Massachusetts. Massachusetts General Laws Chapter 64H Section 6 – Exemptions The item must be for personal use by the purchaser or a household member.

The August Sales Tax Holiday

Massachusetts holds a sales tax holiday each year, typically on a weekend in August, when most retail items priced at $2,500 or less per item are exempt from both sales and use tax.11Massachusetts Department of Revenue. Massachusetts Sales Tax Holiday Frequently Asked Questions The holiday covers personal purchases, not business ones. Timing a larger purchase for a house or rental to that weekend can save real money. The specific dates are announced each summer by the legislature.

A Note on Cannabis

Adult-use cannabis is taxed far more heavily than other goods. Massachusetts imposes a 10.75% state excise on retail cannabis sales, plus the standard 6.25% sales tax, and towns can add a local tax of up to 3%.12Massachusetts Cannabis Control Commission. Taxes and Fees The combined rate can reach 20%. Dispensary availability on the island has fluctuated, so check current retail options before assuming you can buy locally.