Maine's current sales tax rate is 5.5 percent

Maine has a single statewide sales tax rate of 5.5 percent. This rate applies to most retail purchases of tangible goods — items you can touch and take home. Unlike some states, Maine does not allow cities or counties to add a local sales tax on top of the state rate, so the 5.5 percent is the only sales tax you pay regardless of where in Maine you shop.

The 5.5 percent rate has been in place since 2011. Before that, Maine's rate was 5 percent. If you are comparing Maine to neighboring states, New Hampshire has no sales tax at all, Vermont charges 6 percent, and Massachusetts charges 6.25 percent.

Key Takeaways

  • Maine's sales tax rate is 5.5 percent statewide with no local additions, so the rate is the same in Portland, Bangor, or any other city.
  • Sales tax applies to most physical goods but not to services, groceries, or prescription medications.
  • Some items like clothing under $175 per item are exempt from sales tax in Maine.
  • If you are a business owner, you need a sales tax permit from the Maine Department of Revenue Services to collect and remit sales tax.

What items are taxed at the 5.5 percent rate

Sales tax in Maine applies to tangible personal property — the technical term for goods. This includes clothing, furniture, electronics, books, toys, tools, and most other items you buy in a store or online. If a seller ships to your Maine address, Maine sales tax applies even if you order from out of state.

Services are not taxed. Haircuts, car repairs, plumbing work, and medical care do not have sales tax added. Labor charges on a repair are not taxed, though parts may be. For example, if you take your car to a mechanic and they charge you $100 for labor and $200 for a new part, sales tax applies only to the $200 part.

Items and categories that are exempt from Maine sales tax

Several categories of goods are not subject to the 5.5 percent rate. Groceries — food you cook at home — are exempt. This includes milk, bread, vegetables, meat, and canned goods. Hot prepared food from a restaurant or deli counter is taxed, but cold food you take home is not.

Prescription medications are exempt. Over-the-counter medications like aspirin or cold medicine are taxed. Clothing items under $175 per item are exempt, but if a single piece of clothing costs $175 or more, the full price is taxed. Shoes under $175 are also exempt.

Medical equipment and supplies used by people with disabilities may be exempt depending on the item. Newspapers and periodicals are exempt. Fuel oil and propane for heating are exempt. If you are unsure whether a specific item is taxed, the Maine Department of Revenue Services publishes a list of taxable and exempt items on its website.

How sales tax is calculated on your receipt

When you buy a taxable item, the seller calculates 5.5 percent of the price and adds it to your total. If you buy an item for $100, the sales tax is $5.50, and your total is $105.50. If you buy multiple items, tax is calculated on the total of all taxable items, then added once.

Some items on your receipt may not be taxed. If you buy a shirt for $50 and a sandwich for $10, the tax applies only to the shirt. Your receipt should show which items are taxed and which are not, though not all registers break this down clearly. If you see a charge you do not recognize, ask the cashier to explain it.

Sales tax on online and mail orders to Maine

If you order something online and have it shipped to a Maine address, Maine sales tax applies. This is true even if you order from a company based in another state. The seller is required to collect Maine sales tax at checkout or charge it when the item ships.

Some online sellers do not collect sales tax at the time of purchase. If that happens, you may owe "use tax" — which is Maine's way of collecting tax on out-of-state purchases. In practice, most individuals do not file use tax returns, but the tax is technically owed. If you run a business, you should track purchases subject to use tax and report them on your sales tax return.

What business owners need to know about collecting sales tax

If you sell taxable goods in Maine — whether in a physical store, online, or at a market — you need a sales tax permit from the Maine Department of Revenue Services. You explore for this permit before you open for business. The permit is free, but you must renew it every two years.

Once you have a permit, you collect 5.5 percent sales tax from customers on taxable items and remit it to the state. Most businesses file sales tax returns monthly or quarterly, depending on how much tax they collect. Returns are filed through the Maine Department of Revenue Services online portal. If you collect sales tax but do not remit it, the state can assess penalties and interest.

You do not collect sales tax on items that are exempt — groceries, prescription drugs, clothing under $175, and others listed above. Keep records of what you sell and how much tax you collect so you can file accurate returns.

Frequently Asked Questions

Do I pay sales tax on clothing in Maine?

Clothing items under $175 per item are exempt from sales tax. If a single piece of clothing costs $175 or more, you pay 5.5 percent tax on the full price. Shoes follow the same rule. Check your receipt — it should show whether tax was charged.

Is restaurant food taxed in Maine?

Hot prepared food from a restaurant, deli, or takeout counter is taxed at 5.5 percent. Cold food you take home — like a sandwich from a grocery store deli case — is not taxed. If you are unsure whether something is considered "prepared," ask before you pay.

Do I owe Maine sales tax on something I bought online from another state?

Yes. If you have it shipped to a Maine address, Maine sales tax applies. Most large online retailers collect it automatically at checkout. If they do not, you technically owe use tax, though enforcement for individual purchases is rare.

What is the difference between sales tax and use tax?

Sales tax is collected by the seller when you buy something. Use tax is what you owe on purchases where sales tax was not collected — usually out-of-state purchases. Both rates are 5.5 percent in Maine. Businesses are required to track and report use tax; individuals rarely do.

Where do I get a sales tax permit if I am starting a business?

Contact the Maine Department of Revenue Services or visit their website to explore for a sales tax permit. The permit is free and required before you start selling taxable goods. You must renew it every two years.