Rates last verified: September 4th, 2026
Sources: Massachusetts General Laws; Massachusetts Department of Revenue; State 911 Department. Full citations at the bottom of this page.
Massachusetts keeps the rate simple and puts the work in the base. The state sales tax reaches telecommunications services at the same 6.25% it applies to goods, with no county or city layer on top. The hard part for a telecom biller is scope: a broad definition of telecommunications, a taxable list that reaches Voice over Internet Protocol (VoIP), sourcing rules that pull in interstate calls charged to Massachusetts addresses, a $30 monthly exemption for residential lines, and a bundling rule that taxes the whole invoice when the telecom portion is not separately stated.
Quick Facts
| Item | Massachusetts Treatment |
|---|---|
| State sales tax | 6.25% of the sales price of telecommunications services sold in Massachusetts (M.G.L. c. 64H, §§ 1, 2) |
| Local sales taxes | Not verified. M.G.L. c. 64H, § 2 sets one statewide 6.25% rate; no source fetched this session states whether any city or town adds a telecom-specific charge |
| What counts as telecom | Any transmission of messages or information by electronic or similar means, between or among points by wire, cable, fiber optics, laser, microwave, radio, satellite, or similar facilities, not including cable television (M.G.L. c. 64H, § 1) |
| VoIP | Taxable. The transmission is taxable "without regard to whether such service is referred to as voice over Internet protocol services" (Technical Information Release 05-8) |
| Interstate calls | Taxable when the sale occurs in Massachusetts: the call originates or is received in Massachusetts and is charged to a Massachusetts service address (830 CMR 64H.1.6(4)) |
| Residential exemption | The first $30 per month of residential telephone service is exempt; one exemption per residential service address (M.G.L. c. 64H, § 6(i)) |
| 911 surcharge | $1.50 per month for each line capable of accessing 911, wireline, wireless, and interconnected VoIP; approved at that level through December 31, 2028 |
| Prepaid wireless 911 | $1.50 per month, collected from the customer or remitted on a revenue formula (560 CMR 3.00); drops to $1.00 on January 1, 2029 |
| Internet access | Not taxed; protected by the federal Internet Tax Freedom Act (Technical Information Release 05-8) |
How Massachusetts Taxes Telecom Services
Massachusetts folds telecom into its general sales tax. M.G.L. chapter 64H, section 2 imposes a 6.25% excise on retail sales of tangible personal property and services, and section 1 deems telecommunications services to be services for that purpose. The buyer pays the tax as an addition to the price, and the vendor collects it and remits it to the Massachusetts Department of Revenue (DOR). The definition is broad: any transmission of messages or information by electronic or similar means, between or among points, by wire, cable, fiber optics, laser, microwave, radio, satellite, or similar facilities. Cable television is carved out of the definition.
The DOR's Technical Information Release 05-8 draws the base in detail. Taxable services include telephone service, toll-free and 900-number service, paging, voice mail, facsimile transmission, teleconferencing, vertical services such as caller ID and call waiting, mobile service including activation and roaming charges, data transmission, prepaid calling arrangements, and private communication channels. The release taxes voice transmission "without regard to whether such service is referred to as voice over Internet protocol services." On the other side sit internet access, data processing, database and electronic information services, cable and other audio and video programming, digital products delivered electronically, on-premises installation and maintenance, advertising, and billing and collection services sold to third parties.
Sourcing decides whose tax applies. Calls between points in Massachusetts are always taxable. An interstate call is taxable when the sale occurs in Massachusetts, which the DOR regulation defines as a call that originates or is received in Massachusetts and is charged to a Massachusetts service address, with a billing-address fallback when neither end is the charged address. Mobile service follows the customer's place of primary use, post-paid calling services follow the origination point, and prepaid calling arrangements follow the point of sale or, absent one, the shipping or billing address. A vendor that paid another state's tax on the same sale can claim a credit against the Massachusetts tax. Bundling carries a trap: when telecom is sold with other services, the whole price is taxable unless the telecom portion is separately stated, reasonable, set in good faith, and documented.
One more obligation sits outside the invoice. Under M.G.L. chapter 59, section 39, the DOR commissioner, not the local assessor, values a telephone company's machinery, poles, wires, and underground conduits each year, certifies the values to the company and to every city and town by June 15, and local assessors must use those certified values. A company that disputes its valuation appeals to the Appellate Tax Board by July 15.
911 And Other Per-Line Fees
Massachusetts funds 911 through a single monthly surcharge under M.G.L. chapter 6A, section 18H. It applies to each line capable of accessing the 911 system: wireline exchange lines, wireless numbers, and interconnected VoIP lines, with equivalency ratios for trunk-based services such as centrex and ISDN primary rate interface. The Department of Telecommunications and Cable (DTC) sets the amount, and on November 30, 2023 it approved keeping the surcharge at $1.50 per month through December 31, 2028. The provider collects the surcharge, shows it on the bill as "Disability Access/Enhanced 911 Service Surcharge," and remits it to the state treasurer for the Enhanced 911 Fund. The customer, not the provider, is liable for unpaid surcharges, and the surcharge itself is not subject to sales or use tax.
Prepaid wireless pays the same amount through its own mechanics. Under the State 911 Department's regulation 560 CMR 3.00, the surcharge on prepaid wireless has been $1.50 per month since January 1, 2019 and falls to $1.00 on January 1, 2029. A prepaid provider chooses one of two paths: collect the surcharge monthly from each customer, or remit a calculated total that divides its Massachusetts prepaid revenue for the month by its national average revenue per user and multiplies the result by the surcharge. Either way, remittance is due within 30 days of month end, and the provider may keep an administrative fee of up to 1% of the monthly surcharge revenue.
Taxability By Service Type
- Intrastate telecommunications services: taxable at the 6.25% statewide rate.
- Interstate calls: taxable when the call originates or is received in Massachusetts and is charged to a Massachusetts service address; a credit offsets tax properly paid to another state.
- VoIP: taxable as a telecommunications transmission regardless of the VoIP label or Federal Communications Commission classification.
- Mobile service: taxable based on the customer's place of primary use, including activation and roaming charges.
- Prepaid calling arrangements: taxable, sourced to the retail point of sale or, absent one, the shipping or billing address.
- Sales for resale: exempt with a resale certificate (Form ST-4); services the reseller consumes itself owe use tax.
- Residential telephone service: the first $30 per month is exempt; amounts above $30 are taxable.
- Internet access: not taxed, under the federal Internet Tax Freedom Act and Technical Information Release 05-8.
- Cable television and audio and video programming: outside the telecom definition and not taxed under chapter 64H.
- The 911 surcharge: not subject to sales or use tax.
How CereTax Handles Massachusetts
Massachusetts's difficulty is the base, not the rate. Every invoice needs the right call on scope: VoIP in, internet access out, the $30 residential exemption tracked per service address, interstate calls sourced by service address, and bundles separated before the whole charge becomes taxable. CereTax assigns each charge to the right jurisdiction at the rooftop level, applies Massachusetts's base rules by service type, and keeps an audit trail behind every calculation. If you serve customers in Massachusetts, book a demo and bring a real invoice.
For the full evaluation checklist, see what a telecom tax engine should do.
Sources
- M.G.L. c. 64H, § 1, definitions, including telecommunications services. Accessed August 28, 2026.
- M.G.L. c. 64H, § 2, sales tax rate. Accessed August 28, 2026.
- M.G.L. c. 6A, § 18H, enhanced 911 service surcharge. Accessed August 28, 2026.
- M.G.L. c. 59, § 39, central valuation of telephone company property. Accessed August 28, 2026.
- 830 CMR 64H.1.6, telecommunications services, Massachusetts Department of Revenue. Accessed August 28, 2026.
- Technical Information Release 05-8, Massachusetts Department of Revenue. Accessed August 28, 2026.
- Sales and Use Tax guide, Massachusetts Department of Revenue, updated May 7, 2026. Accessed August 28, 2026.
- E911 Surcharge, State 911 Department. Accessed August 28, 2026.
- 560 CMR 3.00, prepaid wireless surcharge, State 911 Department, amended January 3, 2025. Accessed August 28, 2026.
- Internet Tax Freedom Act, 47 U.S.C. § 151 note.
See how other states compare on the telecom tax by state hub.
Note: Always confirm current rates and filing obligations directly with the state’s DOR, PUC, or 911 authority before applying charges or remitting payments.
