Total Range for 2025
| Base state sales tax rate | 5.50% | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate |
| Local rate range | N/A | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate |
| Total rate range | 5.50% | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate |
| Economic sales nexus threshold | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | |
| Transactions threshold | N/A | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate |
| Sales tax return filing due date | 15th of following month | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate |
The base state sales tax rate in Maine is 5.5% and since there is no local rate range the total sales tax range is just 5.5%.
How to calculate your sales tax rate
Use our online sales tax calculator to determine the combined state and local sales tax rate for each location where you have a physical or economic nexus. Just enter your state and ZIP code to get your sales tax rate.
Example of using the sales tax rate in a tax calculation:
- Buying a $60 jacket in Maine with a 5.5% sales tax adds ($60 x 5.5%) = $3.30 in tax.
- You’d pay $60 + $3.30 = $63.30 total.
Nexus: Why do you need to collect sales tax in Maine?
If you’re selling goods and services in Maine then sales tax might apply! To determine your obligation, you need to understand “nexus,” which ties businesses to states for tax purposes.
Two types of nexus exist:
- Physical Nexus: Having a physical presence, like an office, warehouse, or employees in Maine, triggers this type. If you do, you likely need to collect sales tax.
- Economic Nexus: This kicks in when your sales within Maine exceed a certain economic threshold. Even without a physical presence, surpassing this threshold requires collecting sales tax.
Services
- Generally, services in Maine are not taxable.
- However, there are exceptions. The tax applies to services directly tied to the sale of tangible goods (like engraving on a watch you sell).
- Rental services for specific items (like cars or living quarters) can also be taxable.
Goods
- Maine taxes the sale of most tangible personal property.
- There are exemptions for certain items, including groceries, some prescription drugs, and certain medical equipment.
Freight/Shipping
- Shipping and freight charges are generally not taxable unless they are specifically included in the sale price of the taxable goods.
Clothing
- All clothing sales are taxable in Maine
Electronics
- All electronic sales are taxable
SaaS
- In Maine, SaaS is not taxable.
Digital Products
- Digital products are subject to retail sales tax if they are transferred electronically
Software
- Generally, electronically downloaded software is considered tangible personal property and is taxable in Maine.
How to register for sales tax in Maine
There are two ways to register for a sales tax permit in Maine:
- Online: This is the faster and recommended method.
- Visit the Maine Revenue Service Online Sales & Use, Service Provider and Withholding Tax Registration Service and follow the steps: https://www.maine.gov/revenue/taxes/sales-use-service-provider-tax
- You’ll need information like your personal ID (SSN), business details (EIN), and the type of business you operate.
- Paper Application:
- Download the application forms from the Maine Revenue Services website
- Fill them out and send them back
How to collect sales tax in Maine
Here’s how to collect sales tax in Maine:
- Determine Taxable Sales
- Charge the Correct Rate
- Collect the Tax:
- Include the 5.5% sales tax in your product or service price during checkout.
- Most Point-of-Sale (POS) systems can automate this calculation and collection.
4. Keep Records:
- Maintain good records of your sales and the sales tax collected for each transaction.
- This will be crucial when filing your sales tax returns.
5. File and Pay Sales Tax:
- Maine Revenue Services offers various options for filing and paying sales tax:
- Online: File through the Maine I-File system with online payment options.
- Mail: Submit paper forms (ST-7) with a check or money order.
- Third-Party Filers: Use a tax software provider that can handle filing for you.
How to get a sales tax permit/license in Maine?
After registering your business, apply for a sales tax permit with the Maine Revenue Services. This is done online through the Maine Revenue Services’ Sales Tax Registration portal at Maine Revenue Services. You will need to complete the application form and provide details about your business operations and expected sales.
When are Maine’s sales tax returns due?
Maine sales tax returns are due on the 15th day of the month following the reporting period. This applies regardless of whether you file monthly, quarterly, semiannually, or annually.
Here’s a breakdown for clarity:
- Sold items in January: File and pay by February 15th.
- Sold items in February: File and pay by March 15th, and so on.
Important Note: If the 15th falls on a weekend or holiday, the due date is typically the next business day.
Is anyone exempt from sales tax in Maine?
Exempt Customers:
- The state of Maine does not offer a blanket exemption for all 501(c) nonprofits.
- Only specific organizations qualify, such as hospitals, schools, churches, and libraries.
- These organizations need to apply to Maine Revenue Services for an exemption certificate. They cannot simply claim exemption at the time of purchase.
Tax-Exempt Goods:
- Maine exempts the sale of certain goods from sales tax, including:
- Most groceries (excluding prepared food)
- Prescription drugs and certain medical devices
Do I Have to Collect Sales Tax from Maine Customers if I Sell on Amazon, Walmart, eBay, or Etsy?
No.
Maine has a marketplace facilitator law requiring platforms like Etsy or Amazon to collect sales tax of third-party sellers on their platforms. If a marketplace seller’s sales don’t exceed $100,000, they don’t have to register, collect, or remit Maine sales tax.
