Maine's statewide sales tax is 5.5 percent

Maine charges a 5.5 percent sales tax on most retail purchases. This is the rate you pay statewide, and it applies to tangible goods — things you can touch and take home. The tax is collected by the retailer at the point of sale and sent to the Maine Department of Revenue Services.

Some municipalities add a local tax on top of the state rate. A few towns in Maine have adopted a local option sales tax of 0.5 percent, bringing the total to 6 percent in those areas. You can find out whether your town has added this local tax by checking with your city or town tax assessor's office, or by asking the retailer when you make a purchase.

Key Takeaways

  • Maine's base sales tax rate is 5.5 percent on most goods, collected by retailers at checkout.
  • Some towns add an additional 0.5 percent local sales tax, so the total can reach 6 percent depending on where you shop.
  • Groceries, prescription medications, and most services are not subject to sales tax in Maine.
  • The tax applies to tangible items like clothing, electronics, and furniture, but not to digital downloads or most services.

What is and is not taxed in Maine

Maine exempts certain categories from sales tax entirely. Groceries — food you buy to prepare at home — are not taxed. This includes bread, milk, vegetables, meat, and frozen meals. Restaurant meals and prepared foods are taxed, but raw ingredients are not.

Prescription medications are also exempt from sales tax in Maine. Over-the-counter medicines like pain relievers and cold medicine are taxed, but anything requiring a prescription from a doctor is not. You will not see sales tax added when you fill a prescription at a pharmacy.

Most services are not subject to sales tax. Haircuts, car repairs, medical visits, and plumbing work do not have sales tax added. However, if you buy a physical product as part of that service — such as parts for a repair or a haircut product — the product itself may be taxed depending on how the transaction is structured.

Clothing and footwear under $175 per item are exempt from sales tax in Maine. A shirt or pair of shoes costs less to buy because no tax is added. Items over $175 are taxed on the full amount. This rule applies to most apparel, including coats, pants, and accessories.

Items that are always taxed

Electronics, furniture, and most household goods are subject to the full 5.5 percent state sales tax (plus any local tax). A television, laptop, sofa, or kitchen appliance will have sales tax added at checkout. Toys, sporting goods, and tools are also taxed.

Gasoline and diesel fuel are taxed at the pump as part of Maine's fuel excise tax, which is separate from sales tax. The fuel tax rate changes periodically based on wholesale prices. Vehicle registration and licensing fees are not sales tax but are separate state charges.

Digital downloads — music, movies, e-books, and software — are taxed in Maine. If you download a song, movie, or app, sales tax is added to your purchase. Streaming services like Netflix or Spotify are also taxed.

How local option sales tax works

A handful of Maine towns have voted to impose an additional 0.5 percent sales tax on top of the state rate. This local tax goes to the town and is used for municipal services. The towns that have adopted this tax include some in the Portland area and other communities, though the list changes as towns vote on the measure.

When you shop in a town with local sales tax, the total tax you pay will be 6 percent instead of 5.5 percent. The retailer collects both the state and local portions and sends them to the appropriate agencies. You do not file anything separately — the tax is calculated and added at the register.

If you are unsure whether your town has a local sales tax, ask the cashier or call your town's tax assessor. The difference is small on individual purchases but adds up over time if you shop locally.

Tax-free shopping periods in Maine

Maine does not currently have a statewide tax-free shopping week or holiday. Some states offer these periods — usually a few days in August before school starts — when clothing and school supplies are not taxed. Maine has not adopted this practice, so sales tax applies year-round on taxable items.

However, individual retailers sometimes run promotions where they absorb the sales tax themselves as a discount. These are retailer decisions, not state law, and are not common. Always check with the store if you see an advertisement about tax-free shopping to understand what is actually being offered.

Frequently Asked Questions

Do I pay sales tax on groceries in Maine?

No. Food you buy to prepare and eat at home is not taxed in Maine. This includes bread, produce, meat, dairy, and frozen meals. Restaurant meals and prepared foods from a deli counter are taxed, but raw groceries are not.

Is clothing always tax-free in Maine?

Clothing and footwear under $175 per item are tax-free. A $100 shirt has no tax added. A $200 coat is taxed on the full $200. Accessories like hats and belts follow the same rule based on their individual price.

What is the sales tax if I shop in a town with local option tax?

The total is 6 percent — the 5.5 percent state rate plus 0.5 percent local tax. Only some towns have adopted the local tax, so it depends on where you are shopping. Ask the retailer or your town assessor if you are unsure whether your area has it.

Do I pay sales tax on prescription medications?

No. Prescription medications are exempt from sales tax in Maine. Over-the-counter medicines like aspirin or cough syrup are taxed. The difference is whether a doctor's prescription is required.

Are digital purchases like music and e-books taxed?

Yes. Digital downloads, streaming services, and e-books are subject to Maine's 5.5 percent sales tax. This applies to music, movies, software, apps, and audiobooks purchased online.