Tax News

Massachusetts Imposes New State Tech Tax

Massachusetts-based technology companies are subject to a new tax. As of July 31, certain providers began collecting and paying the state’s 6.25 percent sales tax on computer and software services. Opponents to the tax claim the added cost puts tech innovators in Massachusetts at a competitive disadvantage relative to peer providers in competing states who are not subject to similar tax treatment. Further, the opposition claims the tax is vague and threatens jobs. Despite vocal opposition, the state legislature shows no signs of dropping the tax.

Gary Purpura can be reached at or 203.307.2820.

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