Short-Term Rental Tax in Massachusetts (MA)
The state-level tax rate on short-term rentals in Massachusetts is 11.7% , consisting of 6.3% sales tax and 5.7% lodging tax. Massachusetts has enacted taxes specifically targeting short-term rentals. Major platforms like Airbnb collect state taxes automatically. With local taxes, the total rate in Boston reaches 14.9%. STR operators must register with the state. Massachusetts charges a 5.7% state room occupancy excise tax on short-term rentals. The 6.25% state sales tax does NOT apply to lodging. Cities may add a local room occupancy tax of up to 6.5%. STR operators must register with DOR. Effective 2019, STRs are treated the same as hotels.
Annual Tax Estimate for Massachusetts
The table below shows estimated annual tax obligations at different nightly rates, assuming 65% occupancy (237 nights/year). Estimates are shown for both the state-level rate and the highest local rate (Boston).
| Nightly Rate | Gross Revenue | State Tax (11.7%) | Boston Tax (14.9%) |
|---|---|---|---|
| $100.00/night | $23,700 | $2,773 | $3,543 |
| $150.00/night | $35,550 | $4,159 | $5,315 |
| $200.00/night | $47,400 | $5,546 | $7,086 |
| $300.00/night | $71,100 | $8,319 | $10,629 |
| $500.00/night | $118,500 | $13,865 | $17,716 |
Estimates assume 65% occupancy. Actual tax may differ based on local exemptions, booking fees, and platform collection.
STR Tax Rates by City in Massachusetts
Local taxes significantly impact the total STR tax burden in Massachusetts. The table below shows combined state + local rates for 4 cities, sorted by total rate. The highest combined rate is 14.9% in Boston.
| City | Local Tax | Total Rate | Tax on $200/night | Tier | Notes |
|---|---|---|---|---|---|
| Boston | 6.5% | 14.9% | $29.90 | High | City of Boston 6.0% local room tax + 2.75% convention center tax. STR registration required. |
| Cape Cod | 6.0% | 11.7% | $23.40 | Moderate | Barnstable County towns charge 4-6% local room tax. Very active vacation rental market. |
| Martha's Vineyard | 6.0% | 11.7% | $23.40 | Moderate | Dukes County 4-6% local room tax. |
| Cambridge | 6.0% | 11.7% | $23.40 | Moderate | City of Cambridge 6% local room occupancy tax. |
How Massachusetts Compares to Other States
Below is a comparison of Massachusetts with five states that have similar state-level STR tax rates. This comparison helps illustrate where Massachusetts stands relative to other states in terms of tax burden, platform collection, and registration requirements.
| State | State Rate | Sales Tax | Lodging Tax | Platform Collects | Registration |
|---|---|---|---|---|---|
| Massachusetts (MA) | 11.7% | 6.3% | 5.7% | Yes | Required |
| New Jersey (NJ) | 11.6% | 6.6% | 5.0% | Yes | Required |
| Rhode Island (RI) | 12.0% | 7.0% | 5.0% | Yes | Required |
| West Virginia (WV) | 12.0% | 6.0% | 6.0% | Yes | Required |
| Illinois (IL) | 12.3% | 6.3% | 6.0% | Yes | Required |
| Texas (TX) | 12.3% | 6.3% | 6.0% | Yes | Required |
Frequently Asked Questions About Massachusetts STR Taxes
What is the short-term rental tax rate in Massachusetts in 2026?
The state-level tax rate on short-term rentals in Massachusetts is 11.7%, consisting of 6.3% sales tax and 5.7% lodging tax. Local taxes can bring the total to 14.9% in cities like Boston. At $200/night with 65% occupancy, the state-level tax alone is approximately $5,546 per year.
Does Airbnb collect STR taxes in Massachusetts?
Yes. Airbnb, Vrbo collect state room occupancy excise. However, local and county taxes may not be covered by platform collection. Always verify with your local tax authority what taxes your platform collects on your behalf.
Do I need to register my short-term rental in Massachusetts?
Yes. Massachusetts requires STR operators to register with the state. This typically includes obtaining a sales tax permit and/or lodging tax registration. Many cities and counties in Massachusetts also require local STR permits or business licenses. Check with both state and local authorities for specific requirements.
What is the total STR tax rate in Boston, Massachusetts?
The total combined tax rate in Boston is 14.9%, which includes the 11.7% state rate plus 6.5% in local taxes. City of Boston 6.0% local room tax + 2.75% convention center tax. STR registration required. At $200/night with 65% occupancy, this amounts to approximately $7,086 per year in taxes.
How much will I owe in STR taxes in Massachusetts?
Your annual STR tax depends on your nightly rate, occupancy, and location. At the state level (11.7%), a property earning $200/night with 65% occupancy would owe approximately $5,546/year in state taxes alone. In Boston, the total tax at the same rate would be approximately $7,086/year. Use our STR tax calculator for a customized estimate.
Calculate Your Massachusetts STR Tax
Use our STR tax calculator to get a personalized estimate of your annual tax obligation in Massachusetts. Enter your nightly rate and occupancy to see your projected state and local taxes, or browse all 50 states to compare STR tax rates across the country.