A use tax is a type of excise tax assessed upon tangible personal property purchased by a resident of the assessing state for use, storage or consumption of goods in that state (i.e., not for resale), regardless of where the purchase took place. The use tax is typically assessed at the same rate as the sales tax that would have been owed (if any) had the same goods been purchased in the state of residence.

For example, a resident of Massachusetts, which has a five-percent use tax on goods and services, purchases non-exempt goods or services in New Hampshire for use, storage or other consumption in Massachusetts. The New Hampshire vendor collects no sales taxes on the goods but the purchaser must still pay five percent of the sales price directly to the Department of Revenue in Massachusetts as a use tax. If the same goods are purchased in a U.S. state that does collect sales tax for such goods at time of purchase, then whatever taxes were paid by the purchaser to that state can be deducted from the five percent owed for subsequent use, storage or consumption in Massachusetts.

Massachusetts use tax statute.