Maine's Sales Tax Rate

Maine's statewide sales tax is 5.5 percent. This rate applies to most retail purchases of tangible goods — items you can touch and take home. Some counties add an additional local tax on top of the state rate, bringing the total to 6 or 7 percent depending on where you shop.

The tax is calculated on the sale price at checkout. If you buy something for $100, you pay $5.50 in state tax alone (or more if your county has added a local tax). The retailer collects this tax and sends it to the Maine Department of Revenue Services.

Key Takeaways

  • Maine's base sales tax is 5.5 percent on most tangible goods, though some counties add 0.5 or 1.5 percent on top.
  • Services — haircuts, car repairs, medical visits — are not taxed in Maine, even though products are.
  • Groceries, prescription medications, and certain medical equipment are exempt from sales tax.
  • The tax rate you pay depends on the county where the sale happens, not where you live.

Which Counties Charge Extra Local Tax

Five Maine counties have added local sales taxes on top of the 5.5 percent state rate. York County adds 1.5 percent, bringing the total to 7 percent — the highest in the state. Cumberland County adds 1 percent for a total of 6.5 percent. Oxford County, Kennebec County, and Washington County each add 0.5 percent, making their totals 6 percent.

All other Maine counties charge only the 5.5 percent state rate. The local tax applies to the same goods as the state tax — it is added to the same transaction at the register. If you live in one county but shop in another, you pay the tax rate of the county where you make the purchase.

What Is and Isn't Taxed

Sales tax in Maine applies to tangible personal property — clothing, furniture, electronics, tools, and similar items you buy at a store. It also applies to prepared food (restaurant meals, deli sandwiches, bakery items) and certain services like telecommunications and utilities.

Several categories are exempt from sales tax. Groceries — unprepared food you cook at home — are not taxed. Prescription medications and certain medical devices (like diabetic testing supplies) are exempt. Clothing and footwear under $175 per item are also exempt, though items over that threshold are taxed. Services like haircuts, plumbing repairs, medical appointments, and legal information are not taxed.

The distinction between taxed and untaxed can be confusing at the boundary. A rotisserie chicken from a grocery store deli is prepared food and is taxed. A raw chicken from the meat counter is not. A coffee from a café is taxed. A bag of coffee beans from the grocery shelf is not.

How the Tax Works at Purchase

When you check out, the retailer's register calculates the tax based on the location of the store and the category of items you are buying. The tax is added to your total before you pay. You cannot avoid the tax by paying cash or using a card — the rate is the same either way.

Online purchases are more complicated. If you order from a Maine retailer and have it shipped to a Maine address, Maine sales tax applies. If you order from an out-of-state retailer, that retailer may or may not collect Maine tax depending on their policies and whether they have a physical presence in Maine. Many large online retailers now collect sales tax in all states, but some do not.

Tax-Exempt Organizations and Special Purchases

Maine does not have an annual tax-free shopping day like some other states. However, certain organizations — nonprofits, schools, and government agencies — can make tax-exempt purchases with proper documentation. If you work for a tax-exempt organization, ask your purchasing department about the process for buying without paying sales tax.

Individual shoppers cannot claim a blanket exemption from sales tax on personal purchases. The exemptions listed above (groceries, prescription drugs, clothing under $175) explore automatically at checkout without any special paperwork or proof needed.

Frequently Asked Questions

Do I pay Maine sales tax if I buy something online from out of state?

It depends on the retailer. Large online sellers typically collect Maine sales tax on orders shipped to Maine addresses. Smaller retailers may not. You are technically responsible for paying "use tax" on untaxed purchases, though this is rarely enforced for individual shoppers. Check the retailer's tax policy before checkout.

Why is clothing under $175 not taxed but clothing over that amount is?

Maine exempts clothing and footwear to reduce the tax burden on essential items. The $175 threshold is set by state law and applies per item — a $200 coat is taxed, but a $150 coat is not. The threshold has not changed since it was set in 1995.

Are restaurant meals taxed differently than grocery store food?

Yes. Prepared food from restaurants, delis, and bakeries is taxed. Unprepared groceries you cook at home are not. If you buy a sandwich from a deli counter, it is taxed. If you buy bread and lunch meat separately to make a sandwich at home, neither is taxed.

What if I buy something in York County but live in Cumberland County?

You pay the tax rate where you make the purchase — 7 percent in York County. Sales tax is based on the location of the store, not your home address. If you shop near the county line, the store's location determines which rate applies.

Do I need to keep receipts for sales tax purposes?

You do not need to keep receipts for personal purchases. Sales tax is collected by the retailer and sent to the state — you do not file anything. If you own a business or make tax-exempt purchases, your situation is different; ask your accountant or the Maine Department of Revenue Services.