Are downloaded reports taxable in Massachusetts?

No, when the buyer receives information without using the seller's software. Requests run through the seller's software are treated as taxable at 6.25%.

This page is for informational purposes only and is not tax, legal, or accounting advice. Consult a qualified tax professional before making compliance decisions. Full disclaimer

Are information services taxable in Massachusetts?

Unsettled

Electronically delivered information is not taxed as such, but an AI information service bought by sending requests to the seller's software can be taxable software use. AgentTax collects 6.25% on that pattern.

Short answer	Treated as taxable at 6.25%
Authority	830 CMR 64H.1.3; DOR LR 00-13; Citrix Systems v. Commissioner, 484 Mass. 87 (2020)
Last reviewed	2026-08-17

Why

830 CMR 64H.1.3 and Letter Ruling LR 00-13 do not tax electronically delivered information on its own.

An AI information service is usually bought by submitting requests to the seller's remote software, which brings it within the regulation's remote-software-use rule and Citrix Systems v. Commissioner, 484 Mass. 87 (2020). The question is reasonable either way, so AgentTax collects at the higher amount.

Business vs. consumer buyers

AgentTax applies the same answer to business and consumer buyers here. Only a few states change the answer by buyer: Iowa and Washington exempt some business purchases by statute, and Maryland and Ohio split the rate or taxability by use.

Where the line is

A report download with no use of the seller's software is exempt. AgentTax answers that pattern as a data purchase.

How AgentTax classifies information services

Selling access to compiled information: databases, research products, reports and data feeds the seller assembles and furnishes to many customers. AgentTax routes AI research work to its information service category.

Calculate the tax on a Massachusetts transaction

Run a Massachusetts sale through the AgentTax engine and get the amount, the rate it used and the statute behind it. No signup needed.

Open the calculator

Frequently asked questions

Are downloaded reports taxable in Massachusetts?: No, when the buyer receives information without using the seller's software. Requests run through the seller's software are treated as taxable at 6.25%.

Sources

830 CMR 64H.1.3
DOR LR 00-13
Citrix Systems v. Commissioner, 484 Mass. 87 (2020)

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.