Maine's sales tax is 5.5 percent on most goods and services
Maine has a single statewide sales tax rate of 5.5 percent. This rate applies to tangible goods—items you can touch and take home—and to certain services. Unlike some states, Maine does not allow cities or counties to add their own local sales tax on top of the state rate, so the tax you pay is the same whether you shop in Portland or Houlton.
The 5.5 percent rate has been in place since 2011. It replaced a previous system with multiple rates, and it applies uniformly across all Maine retailers. When you see a price tag in a Maine store, the sales tax added at checkout will be 5.5 percent of the subtotal.
Key Takeaways
- Maine's sales tax rate is 5.5 percent statewide, with no additional local taxes added by cities or counties.
- Sales tax applies to most physical goods and to services like repairs, haircuts, and lodging, but not to groceries or prescription medications.
- Some items are taxed at a lower rate or not taxed at all, including clothing under $175 and certain prepared foods.
- Businesses register with the Maine Revenue Services and file sales tax returns monthly or quarterly depending on their sales volume.
What items are taxed and what are exempt
Most tangible goods sold in Maine are subject to the 5.5 percent sales tax. This includes clothing, electronics, furniture, and household items. However, Maine exempts certain categories entirely. Groceries—food you take home to cook—are not taxed. Prescription medications are also exempt, as are over-the-counter drugs and medical devices.
Clothing has a partial exemption: items priced under $175 are not taxed, but clothing and footwear priced at $175 or more are subject to the full 5.5 percent rate. This threshold applies to individual items, not to your total purchase. A $200 coat is taxed; a $150 sweater is not.
Prepared foods and restaurant meals are taxed. If you buy a sandwich at a deli counter, you pay sales tax. If you buy bread and deli meat from the grocery shelf, you do not. The distinction is whether the food is ready to eat when you buy it.
Services that are subject to sales tax
Sales tax in Maine applies not only to goods but also to many services. Repair services—fixing your car, repairing appliances, or servicing your HVAC system—are taxed at 5.5 percent. Personal services like haircuts, salon treatments, and massage therapy are taxed. Lodging at hotels, motels, and bed-and-breakfasts is taxed.
Labor and materials for construction and home improvement work are generally taxed. If you hire a contractor to install new windows or repair your roof, the labor and materials are both subject to sales tax. Telecommunications services, including cell phone plans and internet service, are also taxed.
Some services are exempt. Legal services, medical services, and dental services are not subject to sales tax. Educational services provided by schools and colleges are exempt. If you are unsure whether a particular service is taxed, the Maine Revenue Services website lists detailed categories, or you can contact the business directly.
How sales tax is collected and reported
Retailers in Maine are responsible for collecting sales tax from customers and sending it to the state. Businesses register with Maine Revenue Services, the state agency that administers tax collection. Most retailers file sales tax returns monthly, though some with lower sales volumes may file quarterly.
When you make a purchase, the retailer calculates the tax based on the sale price and adds it to your bill. The retailer then holds that money and remits it to Maine Revenue Services on their filing important date. The state uses these collections to fund state operations and services.
If you are a business owner in Maine, you will need a sales tax registration certificate before you can legally sell taxable items. You can register online through the Maine Revenue Services website. Once registered, you receive a certificate number and instructions for filing returns. Failure to register or to remit collected sales tax can result in penalties and interest.
Sales tax on online and mail orders
Maine requires sales tax to be collected on online purchases and mail orders shipped to a Maine address, just as if you bought the item in a physical store. Large online retailers like Amazon collect and remit Maine sales tax automatically. Smaller sellers may or may not collect it, depending on their business structure and whether they have a physical presence in Maine.
If you buy from an out-of-state seller who does not collect Maine sales tax, you are technically responsible for reporting and paying the tax yourself when you file your Maine income tax return. This is called use tax, and it applies to goods you bring into Maine or have shipped here. In practice, most individual consumers do not report use tax, but the obligation exists under Maine law.
If you are a business buying items for resale or for business use, you may be able to avoid sales tax by providing the seller with a resale certificate. This certificate shows that you are a registered business and that the items are for resale, not personal consumption. Contact Maine Revenue Services for information on obtaining a resale certificate.
Differences between sales tax and income tax
Maine has both a sales tax and an income tax. They are separate systems. Sales tax is a tax on purchases; income tax is a tax on earnings. You pay sales tax when you buy something. You pay income tax based on your wages, self-employment income, and other earnings, and you file an income tax return once a year.
Some states have a sales tax but no income tax, or an income tax but no sales tax. Maine has both. The sales tax rate of 5.5 percent is set by state law and does not change based on your income or personal circumstances. Income tax rates in Maine vary depending on how much you earn.
Where to find current tax information
Maine Revenue Services maintains the official information on sales tax rates, exemptions, and filing requirements. You can visit their website to read tax guides, find registration forms, and look up specific items or services to confirm whether they are taxed.
If you own a business or have questions about how sales tax applies to your specific situation, you can contact Maine Revenue Services directly by phone or through their website. They can provide guidance on registration, filing, and tax treatment of particular goods or services. Retailers can also consult the Maine Retailers Association for industry-specific guidance.
Frequently Asked Questions
Do I pay sales tax on groceries in Maine?
No. Groceries—food you buy to take home and cook—are exempt from Maine sales tax. This includes bread, milk, vegetables, meat, and other unprepared foods. Prepared foods, restaurant meals, and items from a deli counter are taxed.
Is clothing always tax-free in Maine?
Clothing under $175 per item is tax-free. Clothing and footwear priced at $175 or more are subject to the 5.5 percent sales tax. The threshold applies to individual items, so a $200 jacket is taxed but a $150 shirt is not.
Do I have to pay sales tax on services like haircuts or car repairs?
Yes. Most services in Maine are subject to the 5.5 percent sales tax. This includes haircuts, salon services, car repairs, appliance repairs, and home improvement labor. Medical, dental, and legal services are exempt.
What is use tax, and do I have to pay it?
Use tax is a tax on goods you buy outside Maine and bring into the state, or buy online from sellers who do not collect Maine sales tax. You are technically required to report and pay use tax on your income tax return, though most individual consumers do not. Businesses should consult Maine Revenue Services about use tax obligations.
Does Maine allow cities or counties to add their own sales tax?
No. Maine has only a statewide sales tax of 5.5 percent. Cities and counties cannot add local sales taxes on top of the state rate, so the tax you pay is the same everywhere in Maine.