Massachusetts employs a destination-based sales tax system, where sales tax is collected based on the customer's location at delivery. This means retailers must apply the 6.25% rate corresponding to the delivery address, ensuring compliance with state tax laws. In contrast, origin-based systems collect tax based on the seller's location, regardless of the buyer’s location. Destination-based systems can complicate tax collection for sellers operating in multiple jurisdictions but ensure taxes are paid where consumption occurs, promoting fairness in tax distribution and aligning tax obligations with where goods and services are actually used.