Is cloud storage taxable in Massachusetts?
No. The Massachusetts Department of Revenue ruled that sales of remote storage service are not taxable when sold to customers in Massachusetts.
| Short answer | Not taxable |
|---|---|
| Authority | DOR Letter Ruling 12-8 |
| Last reviewed | 2026-08-17 |
Why
DOR Letter Ruling 12-8 (Cloud Computing, revised 11/8/2013), ruling 3: "Sales of Remote Storage Service are not taxable when sold to customers in Massachusetts." The ruling has not been revoked or superseded.
Massachusetts taxes tangible property, including prewritten software, and enumerated services. Storage is neither, and the ruling treats what the customer buys as capacity on the seller's hardware.
Business vs. consumer buyers
Because Massachusetts does not tax this category, buyer type does not change the answer.
Where the line is
- A product labelled storage that really sells software functionality, such as file sync, sharing or collaboration features, is taxable software use.
How AgentTax classifies cloud storage
Selling storage capacity on the seller's hardware, priced by space used and data moved. AgentTax handles storage as its own transaction type inside the data processing category.
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Open the calculatorFrequently asked questions
- Is cloud storage taxable in Massachusetts?
- No. DOR Letter Ruling 12-8 holds that remote storage service sold to Massachusetts customers is not taxable.
Related
- All Massachusetts digital tax answers
- Is SaaS taxable in Massachusetts? (full guide)
- Is data processing taxable in Massachusetts?
- Are information services taxable in Massachusetts?
- Is cloud infrastructure (IaaS) taxable in Massachusetts?
Sources
- DOR Letter Ruling 12-8
This page is for informational purposes only and is not tax, legal, or accounting advice. It reflects AgentTax's current interpretation of evolving law, which can change. Consult a qualified tax professional before making compliance decisions. Positions on this page come from the AgentTax tax policy registry (v1.24.0); see our methodology.