Sales tax on labor in Massachusetts: not taxed on building repairs and new construction; repairs to things and installation depend on the job

Repairing a thing in Massachusetts

It depends. Repair labor on a thing is not taxed when parts are listed separately; tax applies only to the parts. If parts are worth more than about 10% of the bill and are not listed separately, the state presumes the whole bill is the price of the parts and taxes it all. What it turns on: whether parts are separately stated, and if not, whether the parts are more than about 10% of the total charge.

• “A repair service shall collect a tax on parts or any materials which it furnishes in connection with repair work, where the value of the parts or materials is not inconsequential. ... If the repair service does not separate on its customer invoices and in its records, the fair retail selling price of the parts or materials from the charge for labor, installation or other services, the Commissioner presumes that the entire charge represents the sales price of the property” — 830 CMR 64H.1.1: Service Enterprises, page date: Promulgated 8/30/79; amended 12/19/03
• “As a general guideline, the term "inconsequential", wherever it appears in this regulation, means a value of less than ten percent of the total charge” — 830 CMR 64H.1.1: Service Enterprises, page date: Promulgated 8/30/79; amended 12/19/03
• “A plumber is hired to replace a broken faucet by a customer. The plumber separately states the price of the faucet and the labor charge. The sales tax is due on the price of the faucet as sold to the customer. The charge for the labor is not subject to tax.” — Massachusetts Sales Tax Guide for Plumbers, page date: Updated March 6, 2026

Repairing a home or building in Massachusetts

Not taxed. Repairing a building (real property) is contractor work. The contractor pays sales or use tax on materials when buying them and does not charge tax on the job. The state's example: a lump-sum bill to fix a leaking fixture carries no tax.

• “Generally, plumbers act as contractors when they perform: Construction Reconstruction Alteration Improvement Remodeling or Repair of real property and are the consumers of tangible personal property (material) purchased by them for the performance of their contracts.” — Massachusetts Sales Tax Guide for Plumbers, page date: Updated March 6, 2026
• “A plumber is hired to fix a leaking fixture and uses materials he or she has already purchased to complete the repair. The customer is billed a lump sum amount for the repair. No tax is due on the total charge as the materials are not separately stated.” — Massachusetts Sales Tax Guide for Plumbers, page date: Updated March 6, 2026

Installation work in Massachusetts

It depends. Installing material into a building under a contract: no tax to the customer, contractor pays tax on materials. If you sell an item (say a water heater or a faucet) and install it, you charge tax on the item; the installation charge is not taxed if it is listed separately, otherwise tax is due on the total. What it turns on: whether the job is a construction/repair contract (contractor consumes materials) or a sale of the item plus installation, and if so, whether the installation charge is separately stated.

• “A plumber is hired to replace a broken faucet by a customer. The plumber separately states the price of the faucet and the labor charge. The sales tax is due on the price of the faucet as sold to the customer. The charge for the labor is not subject to tax.” — Massachusetts Sales Tax Guide for Plumbers, page date: Updated March 6, 2026
• “The tax is due on the total sales price of the water heater. The installation charges are not subject to tax if they are separately stated . If the installation charges are not separately stated, tax is due on the total sales price.” — Massachusetts Sales Tax Guide for Plumbers, page date: Updated March 6, 2026

New construction in Massachusetts

Not taxed. On construction, alteration, improvement or remodeling, the contractor is the consumer of materials and pays sales or use tax when buying them.

• “Generally, plumbers act as contractors when they perform: Construction Reconstruction Alteration Improvement Remodeling or Repair of real property and are the consumers of tangible personal property (material) purchased by them for the performance of their contracts.” — Massachusetts Sales Tax Guide for Plumbers, page date: Updated March 6, 2026

Listing labor separately on the bill in Massachusetts

Changes the answer.

• “A repair service shall collect a tax on parts or any materials which it furnishes in connection with repair work, where the value of the parts or materials is not inconsequential. ... If the repair service does not separate on its customer invoices and in its records, the fair retail selling price of the parts or materials from the charge for labor, installation or other services, the Commissioner presumes that the entire charge represents the sales price of the property” — 830 CMR 64H.1.1: Service Enterprises, page date: Promulgated 8/30/79; amended 12/19/03
• “A plumber is hired to replace a broken faucet by a customer. The plumber separately states the price of the faucet and the labor charge. The sales tax is due on the price of the faucet as sold to the customer. The charge for the labor is not subject to tax.” — Massachusetts Sales Tax Guide for Plumbers, page date: Updated March 6, 2026
• “The tax is due on the total sales price of the water heater. The installation charges are not subject to tax if they are separately stated . If the installation charges are not separately stated, tax is due on the total sales price.” — Massachusetts Sales Tax Guide for Plumbers, page date: Updated March 6, 2026

Materials on jobs in Massachusetts

Either: alteration, remodeling or repair of real property are consumers; a plumber who sells material and installs it for a separate price acts as a vendor and collects tax on the material.

• “Generally, plumbers act as contractors when they perform: Construction Reconstruction Alteration Improvement Remodeling or Repair of real property and are the consumers of tangible personal property (material) purchased by them for the performance of their contracts.” — Massachusetts Sales Tax Guide for Plumbers, page date: Updated March 6, 2026

Trade services Massachusetts taxes

Not checked here. No official Massachusetts list of taxed services was checked.

Where Massachusetts's own guidance gives two answers

Faucet replacement without separately stated parts: the plumbers guide (real-property framing) also says a lump-sum fixture repair carries no tax, while the faucet example says an unseparated charge is taxable if the faucet is more than 10% of the total.

• “If the plumber does not separately state the charge for the faucet, the entire combined charge is taxable to the customer if the value of the material (a faucet) is more than 10% (consequential) in relation to the total charge.” — Massachusetts Sales Tax Guide for Plumbers, page date: Updated March 6, 2026
• “The customer is billed a lump sum amount for the repair. No tax is due on the total charge as the materials are not separately stated.” — Massachusetts Sales Tax Guide for Plumbers, page date: Updated March 6, 2026

Check with the Massachusetts Department of Revenue

Before you bill: check with the Massachusetts Department of Revenue. As of November 6, 2026.

This is a plain-words summary of each state's own revenue guidance as of November 6, 2026, not tax advice. Rules have exceptions, and cities and counties can add taxes of their own. Check with the state's tax department, linked on every state's page, before you bill.

Compare Massachusetts with every state's answer, or with its neighbours just below.

Next door to Massachusetts

• Connecticut: home repair depends, installation depends
• New Hampshire: no sales tax (not fully confirmed)
• New York: home repair taxed, installation depends
• Rhode Island: home repair not taxed, installation depends
• Vermont: home repair not taxed, installation depends

Official sources for Massachusetts

• 830 CMR 64H.1.1: Service Enterprises — Promulgated 8/30/79; amended 12/19/03
• Massachusetts Sales Tax Guide for Plumbers — Updated March 6, 2026

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