What is the Maine Sales Tax Rate?
Maine imposes a statewide sales and use tax rate of 5.5%. Unlike many other states, Maine does not allow local jurisdictions to levy additional sales taxes, meaning sales tax in Maine is applied consistently statewide.
What is Taxable in Maine?
Under Maine tax laws, sales and use tax applies to the sale of tangible personal property and certain enumerated services. Sellers engaged in collecting sales tax in Maine must determine whether their products or services are taxable and remit the appropriate Maine sales tax rate to the state.
Examples of taxable items and services include:
- Prewritten (canned) computer software
- Digital audiovisual and audio services (including streaming)
- Products transferred electronically
- Cable and satellite television or radio services
- Telecommunications services
- Fabrication services
Sales Tax Nexus in Maine
A seller is liable to collect and remit Maine sales tax if they meet the state’s nexus requirements. Nexus can be established through either physical or economic presence.
ME: Physical Nexus
Physical nexus is established when a business has a sufficient physical presence in the state, including:
· An office or business location
· Employees or representatives operating in Maine
· Inventory or warehouse storage
· Company-owned vehicles
ME: Economic Nexus
Maine enforces economic nexus standards for remote sellers and marketplace facilitators. A business may trigger economic nexus if it has over $100,000 in gross revenue from sales of tangible personal property, electronically transferred products, or taxable services delivered into Maine during the current or previous calendar year.
Maine has eliminated its previous 200-transaction threshold. The same revenue threshold applies to marketplace facilitators. Businesses meeting these requirements may need to register and complying with state’s filing obligations.
Learn more on the Maine Revenue Services Guidance for Remote Seller page.
Maine Sales Tax Exemptions
Certain sales in Maine are considered generally exempt from the sales and use tax requirements. Businesses should review exemption eligibility carefully to ensure compliance
Exempt Products and Services
Common exemptions in Maine include:
- Grocery staples (most unprepared food items)
- Custom computer software programs
- Most services not specifically enumerated by statute
- Certain agricultural items
- Prescription drugs
- Durable medical equipment, mobility enhancing equipment, and breast pumps
Entity or Use-Based Exemptions
Additionally, Maine provides exemptions for certain entities and qualifying purchases, including:
- Certain qualified nonprofit entities
- Retailers selling for resale
- Industrial processors (with proper certificate)
- Contractors purchasing for qualifying exempt projects
- Certain government entities
How to Claim Sales Tax Exemption in Maine
To claim a Maine sales tax exemption, the purchaser must provide a valid exemption certificate at the time of sale. The Treasury accepts the following exemption certificates:
- Resale Certificate (Issued by Maine Revenue Services)
- ST-A-119 – Contractor’s Exempt Purchase Certificate
- ST-A-117 – Industrial Users Exemption Certificate
- ST-A-120 – Exemption Certificate for Packaging Material
Additional guidance on acceptable exemption formats can be found on the Maine Revenue Services Sales, Use, and Service Provider Tax FAQ page.
Maine Filing and Remittance Requirements
Maine offers multiple methods for filing and remitting sales and use tax:
- Electronic filing through Maine Tax Portal
- Paper filing of Form ST-7 (approval required)
How to Register for a Maine Sales Tax License
Maine businesses or individuals selling tangible personal property or certain services to Maine consumers may need to register to collect sales tax when meeting qualifying requirements. Registration can be completed online through Maine Revenue Services. More information may be found here.
Frequently Asked Questions
Is Maine part of the Streamlined Sales Tax (SST) initiative?
No, Maine is not a member of the Streamlined Sales Tax (SST) initiative.
Does Maine have sales tax holidays?
No, Maine does not currently offer sales tax holidays.
Are there any special point of sale fees in Maine?
Yes. In addition to the Maine sales tax rate, certain products may be subject to state-imposed fees, including:
- Bottle Deposit Fee: $0.05 per container for beer, hard cider, soda, and similar beverages. Not included in the taxable sales price
- Battery Recycling Fee: $1.00 per new lead-acid battery. Not included in the taxable sales price
- Bag Fee: $0.05 per single-use carry-out bag at qualifying retail stores. Not included in the taxable sales price.
- Tire Recycling Fee: $1.00 per new tire. Not included in the taxable sales price.
- Exempt when sold as part of a motorized vehicle, trailer, or mobile home
- E-911 Surcharge: A $1.00 prepaid wireless fee applies at point of sale
- PaintCare Fee: Variable fee based on container size, added to the purchase price of paint. Not included in the taxable sales price
Does Maine apply sales tax to shipping charges?
Generally, shipping and delivery charges in Maine are taxable when they are included in the sales price of a taxable item or are otherwise not separately stated. Charges that are separately stated and optional may be treated differently.
Is Maine origin- or destination-based?
Maine is a destination-based sourcing state. Sales tax is based on where the buyer receives the goods or services, not where the seller is located.
For more information on U.S. sales tax compliance across all 50 states, check out our State-by-State Sales Tax Guide.