[News & Insights](https://hbrama.com/news-insights)# Sales Tax Break for New Housing Becomes Law

June 28, 2026      [Hot Topics](https://hbrama.com/hot-topics) 

Gov. Maura Healey has signed into law an exemption from the states 6.25% sales tax on all materials, tools and fuel used or consumed in the construction of certain multi-family housing projects approved by the [**Executive Office of Housing and Livable Communities**](https://www.mass.gov/orgs/executive-office-of-housing-and-livable-communities) (EOHLC). To qualify for the sales tax exemption, a housing project must be located in a census tract where the median household income is below 120 percent of the average household income or includes not less than 15 percent affordable units as defined by the EOHLC.

This sales tax exemption for new housing construction was among the policy recommendations contained in the final report of the [**Unlocking Housing Production Commission**](https://www.mass.gov/news/unlocking-housing-production-commission-releases-recommendations-for-producing-more-housing-lowering-costs). HBRAMA Past President Jeff Brem served on the commission on behalf of the association. As many multi-family developments include a set-aside of affordable units, it is believed the sales tax exemption will likely benefit numerous apartment projects, including those developed under the [**MBTA Communities Law.**](https://www.mass.gov/info-details/multi-family-zoning-requirement-for-mbta-communities)

If the sales tax exemption is proven to be successful in lowering the cost of these multi-family projects, HBRAMA may seek to expand the law in the future to include other types of housing.

The governor signed the sales tax exemption into law on June 15 as [**Section 22 of Chapter 101 of the Acts of 2026**](https://malegislature.gov/Laws/SessionLaws/Acts/2026/Chapter101#:~:text=with%20chapter%2062B.-,SECTION%2022.,-Section%206%20of). It became effectively immediately upon her signature.

Keep reading

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