A 5% Massachusetts use tax is due on your taxable purchases from out-of-state businesses of tangible personal property purchased for use in Massachusetts on which you did not pay Massachusetts sales or use tax. The use tax does not apply to out-of-state purchases that are exempt from the sales tax (for example, clothing that costs $175 or less). Examples of taxable items include automobiles, computers, furniture, jewelry, cameras, appliances, and any other item that is not exempt.

Generally, anyone who pays a sales or use tax to another state or territory of the United States on tangible personal property to be used in Massachusetts is entitled to a credit against the Massachusetts use tax, up to 5%. This credit is allowed for sales or use tax paid to another state only if that state has a corresponding credit similar to the Massachusetts credit. See TIR 03-1 for more information.

Prepare and retain with your records a list of your out-of-state purchases in 2005 that are subject to the Massachusetts use tax. OnLine Taxes will calculate your use tax based on the information you enter. For more information about use tax, visit the Massachusetts Department of Revenue website.

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