Massachusetts Plans to Add 6.25% Sales Tax on Candy as Part of $62 Billion Budget
Massachusetts will soon add a 6.25% sales tax on candy under Governor Maura Healey’s new $62 billion budget. By removing candy from the tax-exempt list, the state expects to generate $25 million in additional revenue.
“All we’re doing with candy, to be clear, this isn’t about a new tax,” Healey said to CBS News Boston. “What this is doing is simply saying when you go to the grocery store, instead of having candy treated like a purchase of bread and eggs and milk, essential groceries, that candy is now going to be treated in the same way as when you go to the bakery in the back of the grocery store and pick up cupcakes for your kids.”
This move brings Massachusetts in line with 39 other states that already tax candy. The budget shows steady growth at 2.6% from last year, remaining below inflation. A tax on millionaires will support $2 billion of the budget.
Transportation gets major funding – $687 million for system operations and $617 million for road improvements. Students benefit too, with $170 million going to school meals and $94 million making community college free.
“We’re focusing those investments on things that people depend on, need, all over the state. Child care, education, housing, transportation, human services and so much more,” Healey said.
The change would put candy in the same category as snacks and other non-essential items. Basic groceries – fruits, vegetables, and meat – will remain tax-free.
The budget still needs approval from state lawmakers. Previous efforts to tax candy have failed to get their backing.
This budget plan increases funding for health services, addiction treatment, and housing. Much of this funding comes from the millionaire tax that voters approved in 2022.
