Post Content

Gift Certificates and cards are among the most popular presents to give and receive around this time of the year. But don’t pay more for the cards than you have to. DOR is reminding shoppers that gift cards are the same as a gift of cash and are not subject to the 6.25% Massachusetts sales tax. Retailers should not be charging any taxes on these items. 

However, in some instances a sales tax may be due when the gift card is redeemed and an item is purchased that is taxable. For example, let’s say you buy a sweater with your $50 gift card, no tax is due, but if you buy a toaster, than the tax will be collected on the sales price.  Be aware that the tax only applies to the actual amount that you pay after deducting store discounts or coupons, not the sales price listed on the taxable item.

There are other good things to know about buying and using gift certificates from the Attorney General’s office. Please visit www.mass.gov/ago/consumer-resources/consumer-information/retail-rights/gift-cards-and-certificates/ to learn more.

Happy holidays and smart shopping!

Written By:


Ann Dufresne is Communications Director at the Department of Revenue. She joined DOR in July 2012 after ten years in state goverment. She previously served as Communications Director for MassDOT Registry of Motor Vehicles and for Senate Presidents Therese Murray and Robert Travaglini.

Tags: , , ,

Recent Posts

Prep Early for Next Tax Season posted on May 20

Filing season is finally over and we know the last thing on your mind is next tax season. But did you know that if given more prep time, you could be saving yourself lots of stress and time? Start planning for next tax season now   …Continue Reading Prep Early for Next Tax Season

DOR’s Participation in the Family Court Workshops posted on Apr 22

Once a month, the Department of Revenue’s Child Support Enforcement (CSE) lawyers and staff volunteer to be a part of the Family Court Workshops for Mothers and Fathers at the Suffolk County Probate & Family Court in Boston. The workshops, a joint venture between community   …Continue Reading DOR’s Participation in the Family Court Workshops

DOR Ruling Favorable in First Circuit Judgment posted on Mar 17

The United States Court of Appeals for the First Circuit issued judgments in the Department of Revenue’s (DOR) favor last month, finding that taxpayers in Bankruptcy proceedings cannot discharge late filed tax returns. The court consolidated two similar cases brought before them involving a total   …Continue Reading DOR Ruling Favorable in First Circuit Judgment