Maine's current sales tax rate is 5.5 percent

Maine has one of the lowest sales tax rates in the country. The state charges 5.5 percent on most retail purchases. This rate has been in place since 2011 and applies uniformly across all counties — there are no local add-ons or variations by region.

The 5.5 percent rate applies to tangible goods you buy in stores, online, or by mail order. It does not apply to services, groceries, or most clothing and footwear under $175 per item. Understanding what is and is not taxed helps you predict your actual cost at checkout.

Key Takeaways

  • Maine's sales tax rate is 5.5 percent statewide with no local variations or county add-ons.
  • Groceries, prescription medications, and most clothing under $175 per item are not subject to sales tax.
  • Services like haircuts, repairs, and professional fees are generally not taxed, but labor charges on taxable goods sometimes are.
  • Online purchases from out-of-state retailers are subject to Maine sales tax if the seller has a physical presence or meets certain sales thresholds in the state.

What is taxed at 5.5 percent in Maine

Sales tax in Maine applies to most tangible personal property — items you can touch and take home. This includes clothing and footwear over $175 per item, furniture, electronics, appliances, books, toys, and office supplies. Prepared food and restaurant meals are taxed. Alcohol and tobacco products are taxed at the point of sale, though they also carry separate excise taxes.

Motor vehicles are taxed at 5.5 percent when you register them with the state, not at the dealership. The tax is calculated on the vehicle's fair market value, not the sale price. You pay it to the Bureau of Motor Vehicles when you title and register the vehicle in Maine.

What is not taxed in Maine

Groceries and food for home consumption are exempt from sales tax. This includes bread, milk, vegetables, meat, frozen foods, and non-alcoholic beverages. The exemption does not cover prepared food, restaurant meals, or food consumed on premises.

Prescription medications and medical devices are not taxed. Over-the-counter medicines like pain relievers and cold remedies are also exempt. Clothing and footwear under $175 per item are not taxed — the exemption applies per item, so a $200 coat is taxed but a $150 pair of shoes is not.

Services are generally not subject to sales tax in Maine. This includes haircuts, dental work, car repairs, plumbing, electrical work, and professional fees from doctors, lawyers, and accountants. However, if a service involves installing or attaching a taxable item, the labor may be taxed depending on the circumstances.

How Maine taxes online and mail orders

If you order from an out-of-state retailer online or by mail, Maine sales tax applies if the seller has a physical location in Maine or meets the state's sales threshold. As of 2024, most remote sellers with more than $100,000 in annual sales to Maine residents must collect and remit Maine sales tax. This threshold may change, so check the Maine Revenue Services website for current rules.

If a seller does not collect Maine sales tax at checkout, you may owe use tax on the purchase when you file your state income tax return. Use tax is the same rate as sales tax — 5.5 percent — and is meant to level the playing field between in-state and out-of-state purchases. Most individual taxpayers do not report use tax, but it is technically owed.

Sales tax on specific items and situations

Vehicles registered in Maine are taxed at 5.5 percent on their fair market value at the time of registration, not on the purchase price. If you buy a used car for $10,000 but the state values it at $9,000, you pay tax on $9,000. The Bureau of Motor Vehicles calculates the value using NADA guides and other resources.

Rental cars are subject to sales tax in Maine. The tax is typically included in the daily or weekly rate quoted by the rental company. Gasoline and diesel fuel are not subject to sales tax but carry a separate fuel tax per gallon.

Shipping and handling charges are taxed if they are separately stated on the invoice. If shipping is bundled into the item price, it is taxed as part of the sale. Delivery charges for taxable goods are generally taxable.

How to find the tax on your purchase

Most retailers calculate and display sales tax at checkout. If you are buying in a store, the tax appears on your receipt. If you are ordering online, the tax should appear before you confirm payment — though some out-of-state sellers may not collect it.

To calculate the tax yourself, multiply the subtotal by 0.055. A $100 purchase costs $105.50 after tax. If you are unsure whether an item is taxed, ask the cashier or check the Maine Revenue Services website, which maintains a list of taxable and exempt items.

Frequently Asked Questions

Is clothing always tax-free in Maine?

No. Clothing and footwear under $175 per item are tax-free. A single item over $175 is taxed at 5.5 percent. The threshold applies to each item separately, so you could buy five $150 shirts tax-free but pay tax on a $200 coat.

Do I pay sales tax on groceries?

No. Food for home consumption — bread, milk, vegetables, meat, frozen dinners — is not taxed. Prepared food, restaurant meals, and food consumed on premises are taxed. Alcohol and tobacco are taxed even though they are food-related.

What is use tax and do I have to pay it?

Use tax is a 5.5 percent tax on items you buy from out-of-state sellers who do not collect Maine sales tax. You owe it when you bring the item into Maine. Most individuals do not report it on their tax return, but it is technically owed and the state can audit for it.

Are services like haircuts or car repairs taxed?

No. Most services in Maine are not subject to sales tax. This includes haircuts, medical care, repairs, and professional fees. However, if a service involves installing a taxable item, the labor may be taxed in some cases.

How is a used car taxed when I register it in Maine?

The state taxes the vehicle's fair market value at 5.5 percent, not the price you paid. The Bureau of Motor Vehicles uses NADA guides and other resources to determine value. You pay the tax when you register the vehicle, not at the dealership.