Maine — Sales & Use Tax

Maine imposes a sales and use tax on the value of tangible personal property, products transferred electronically, and specifically enumerated taxable services sold at retail within the state. Value is determined by the sale price as defined in the statute.

Source: 36 M.R.S. § 1811

## Standard Rate

As of 2024, the general sales and use tax rate is 5.5% on taxable tangible personal property, products transferred electronically, and taxable services. Maine continues not to permit local sales taxes; the statewide rate is applied uniformly.

Source: 36 M.R.S. § 1811

## Category-Specific Rates

• 8% rate: Applies to prepared food and to liquor sold for immediate consumption by licensed establishments. (36 M.R.S. § 1811(1)(D)(2))
• 9% rate: Applies to the rental of living quarters in any hotel, rooming house, or camp. (36 M.R.S. § 1811(1)(D)(3))
• 10% rate: Applies to the rental for less than one year of automobiles, pickup trucks, or vans with a gross vehicle weight under 26,000 pounds, or certain loaner vehicles. (36 M.R.S. § 1811(1)(D)(4))
• Adult-Use Cannabis Products: For sales before January 1, 2026, subject to a 10% rate. For sales made on or after January 1, 2026, the tax rate increases to 14% per statutory amendment. (36 M.R.S. § 1811(1)(D)(5); General Informational Bulletin No. 115)

## Tangible Personal Property

“Tangible personal property” is not exhaustively defined in § 1811, but is described by Maine Revenue Services as including physical items like furniture, appliances, clothing, and more. (MRS Business Guide, Oct. 16, 2023)

## Taxable Services and SPT Repeal

Maine taxes only enumerated services. Notably, effective January 1, 2026, the separate Service Provider Tax (SPT) was repealed (36 M.R.S. § 2552 repealed by P.L. 2025, c. 388, Pt. G), and services formerly taxable under SPT—such as cable and satellite television, telecommunications, fabrication, and equipment rentals under rental-purchase agreements—are now subject to standard sales tax at 5.5%. Digital audio and audiovisual services (including streaming) are also now explicitly included in the taxable base as of January 1, 2026. (P.L. 2025, c. 388, Pt. G)

## Registration transition

Providers previously registered only for SPT were required to register for Maine Sales and Use Tax for periods beginning on or after January 1, 2026. The final SPT returns were due January 15, 2026. (General Informational Bulletin No. 115)

All changes above reflect amendments and updates published by Maine Revenue Services and the Maine Legislature through 2024-2025.

Source: 36 M.R.S. § 1811 Source: General Informational Bulletin No. 115 (Oct. 17, 2025) Source: P.L. 2025, c. 388, Pt. G

Remote sellers without physical presence in Maine must register and collect sales tax if their gross sales of tangible personal property, products transferred electronically, or taxable services for delivery into Maine exceed $100,000 in the previous calendar year or current calendar year. The measurement period looks at either the previous or current calendar year, whichever first exceeds the threshold.

Maine eliminated the 200-transaction threshold effective January 1, 2022, leaving only the revenue-based test.

Source: 36 M.R.S. § 1754-B(1-B)(B)

Sales of tangible personal property and taxable services purchased for resale are not subject to Maine sales tax. Maine law defines "retail sale" as a sale "for any purpose other than for resale," thereby excluding sales for resale from the tax base. Tax is collected only when the property or service is sold to the final consumer.

A retailer purchasing goods or services for resale must provide the seller with a valid Maine resale certificate. Maine Revenue Services automatically issues a resale certificate to any seller whose taxable sales exceed $3,000 annually upon registration; no separate application is required for the resale certificate.

Source: 36 M.R.S. § 1752(11) and MRS Rule 301

Beginning October 1, 2019, under Maine Revised Statutes Title 36, section 1951‑C, a marketplace facilitator is treated as the retailer for all taxable sales of tangible personal property or taxable services delivered into Maine that the facilitator facilitates through its marketplace, and is responsible to collect and remit Maine sales and use tax on such transactions.

Effective October 25, 2023, marketplace facilitators are also required to collect and remit the state’s recycling assistance fee on facilitated sales of new tires and lead‑acid batteries, in addition to direct sales, pursuant to the statutory amendment (PL 2023, c. 441) and as confirmed in MRS guidance.

• The facilitator must provide each marketplace seller a written statement explicitly stating that the facilitator will collect and remit Maine tax on all taxable sales it facilitates.
• As a result, those facilitated sales are excluded from the marketplace seller’s own registration thresholds and reporting requirements.

Source support:

• Statutory authority: Maine Rev. Stat. tit. 36 §1951‑C (as amended by PL 2023, c. 441) (legislature.maine.gov)
• MRS FAQ confirmation of recycling assistance fee effective October 25, 2023 (maine.gov)

Note on material change: Inclusion of the recycling assistance fee on new tires and lead‑acid batteries is a substantive, new collection responsibility enacted in 2023, and thus warrants explicit addition.

Every person required to collect Maine sales tax must register with the State Tax Assessor and obtain a registration certificate before making retail sales. The assessor issues a registration certificate to each applicant that properly completes and submits an application form. Application forms are prescribed and furnished free of charge by the assessor.

A separate registration certificate is required for each place of business. The certificate is nontransferable and is not a license within the meaning of the Maine Administrative Procedure Act. Failure to register when required is a Class E crime.

Source: 36 M.R.S. § 1754-B(2), (3)

Maine provides a partial sales tax exemption for fuel and electricity purchased for use at a manufacturing facility. Ninety-five percent (95%) of the sale price is exempt from sales tax; the remaining 5% is subject to the state's 5.5% base rate.

Scope of the exemption

The exemption applies to all fuel and electricity purchased for use at a manufacturing facility, regardless of whether the fuel or electricity is used directly in production or for ancillary purposes such as lighting, heating, or office space within the facility. The statute does not distinguish between production uses and non-production uses; if the fuel or electricity is purchased for use at a manufacturing facility, 95% of the sale price is exempt.

For purposes of the exemption, "sale price" in the case of electricity includes any charge for transmission and distribution, not merely the generation charge. This means the 95% exemption applies to the total electricity bill, including delivery charges.

Dual-use buildings

When a building is used partly as a manufacturing facility and partly for non-manufacturing purposes, the purchaser must allocate the fuel and electricity between the exempt manufacturing portion and the taxable non-manufacturing portion. Maine Revenue Services requires that the allocation be broken down to the nearest 10% based on the proportionate use of the building.

Manufacturing facility defined

The exemption turns on whether the fuel or electricity is purchased for use at a "manufacturing facility." Maine statute defines "manufacturing facility" at 36 M.R.S. § 1752(6-A) to mean "a plant, factory or other location where machinery or other capital equipment is used and at which at least 50% of the total sales of tangible personal property made by the person, directly or through a contractor, are sales of tangible personal property produced by that person at that location by manufacturing, compounding, processing, assembling or other activity." This 50% threshold is measured by sales dollars, not by square footage or employee headcount.

Calculation example

A manufacturer purchasing $10,000 of electricity for use at a qualifying manufacturing facility pays sales tax on only $500 (5% of $10,000). At Maine's 5.5% sales tax rate, the manufacturer owes $27.50 in sales tax rather than the $550 that would be due absent the exemption.

Effective date

The 95% exemption percentage has been in effect since 1999. Earlier versions of the statute provided different percentages and conditions; practitioners advising on historical transactions should consult the statute as it existed at the time of purchase.

Source: 36 M.R.S. § 1760(9-D)

Maine sales and use tax returns are due on the 15th day of the month following the reporting period. When the 15th falls on a weekend or state holiday, the return is due on the next business day. This due date applies to all filing frequencies—monthly, quarterly, semiannual, and annual filers all must submit returns by the 15th of the month following their reporting period end date.

Filing frequency assignments

Maine Revenue Services assigns filing frequency based on a retailer's average tax liability, not on gross sales. The default requirement is monthly filing, but retailers with lower tax liability qualify for less-frequent filing under Maine Revenue Services Rule 304:

• Monthly filing — Required when average tax liability is $600 or more per month. Returns are due by the 15th of each month for the preceding calendar month.

• Quarterly filing — Permitted when average tax liability is at least $100 per month but less than $600 per month. Reporting periods are January–March, April–June, July–September, and October–December. Returns are due by the 15th of the month following the end of each quarter (April 15, July 15, October 15, January 15).

• Semiannual filing — Permitted when average tax liability is at least $50 per year but less than $100 per month. Reporting periods are January–June and July–December. Returns are due by July 15 and January 15.

• Annual filing — Permitted when average tax liability is less than $50 per year. The reporting period is the calendar year, and the return is due by January 15 of the following year.

The State Tax Assessor conducts an annual review of all active accounts and adjusts filing frequencies as necessary based on actual tax liability. Taxpayers are notified when their filing frequency changes. A retailer may apply to the assessor to file more frequently than required.

Statutory authority and regulatory framework

The statute requires every retailer to file a return "on or before the 15th day of each month" covering the preceding calendar month, but grants the assessor authority to "permit the filing of returns other than monthly." Maine Revenue Services has exercised that authority through Rule 304, which establishes the liability-based thresholds described above. The assessor may extend the time for filing returns for up to 30 days for good cause, but any extension does not extend the time for paying the tax.

Registered retailers must file a return for every reporting period, even if no sales tax was collected during the period. Failure to file a "zero return" when required results in a penalty of $25 or 10% of the tax due, whichever is greater.

Source: 36 M.R.S. § 1951-A; Maine Revenue Services FAQ—Sales, Use, and Service Provider Tax

Sales of grocery staples are exempt from Maine sales tax. Maine defines "grocery staples" as "food products ordinarily consumed for human nourishment," with specific statutory exclusions. This is a complete exemption — no tax is imposed on qualifying grocery staple sales.

Statutory definition

Under 36 M.R.S. § 1752(3-B), "grocery staples" means food products ordinarily consumed for human nourishment. The statute expressly provides that grocery staples include bread and bread products, jam, jelly, pickles, honey, condiments, maple syrup, spaghetti sauce, and salad dressing when packaged as a separate item for retail sale. Maine Revenue Services Instructional Bulletin No. 12 provides additional examples of exempt grocery staples: fruit, vegetables, fish, meat, dairy, breakfast cereal, and canned and boxed food products.

Statutory exclusions from "grocery staples"

The statute excludes the following categories from the definition of "grocery staples." Sales of these items are therefore subject to sales tax:

• Spirituous, malt or vinous liquors.

• Medicines, tonics, vitamins and preparations sold as dietary supplements or adjuncts — except when sold on the prescription of a physician.

• Water, including mineral bottled and carbonated waters and ice.

• Dietary substitutes.

• Candy and confections, including but not limited to confectionery spreads. The statute defines "candy" as a preparation of sugar, honey, or other natural or artificial sweeteners in combination with chocolate, fruits, nuts, or other ingredients or flavorings in the form of bars, drops, or pieces.

• Prepared food — separately defined at 36 M.R.S. § 1752(8-A). Prepared food includes meals served on or off the premises of the retailer, food and drinks that are prepared by the retailer and ready for consumption without further preparation, and all food and drinks sold from an establishment whose sales of prepared food constitute more than 75% of the establishment's gross receipts. The definition of "prepared food" does not include bulk sales of grocery staples, meaning that a retailer selling a full loaf of bread (a bulk grocery staple) does so tax-free even if the retailer is otherwise subject to the 75% prepared-food threshold.

• Soft drinks and certain beverages — the statute excludes "the following food and drinks ordinarily sold for consumption without further preparation: soft drinks and powdered and liquid drink mixes except powdered milk, infant formula, coffee and tea." Powdered milk, infant formula, coffee, and tea remain exempt grocery staples.

Application at retail

The exemption applies regardless of retailer type. Grocery staples sold by supermarkets, convenience stores, gas stations, and other retailers are exempt. Retailers whose sales of prepared food constitute 75% or more of their total gross receipts are required to charge sales tax on sales of food and drinks that require no further preparation, whether prepared by the retailer or by someone else, but the statute expressly excludes bulk sales of grocery staples from the definition of prepared food.

SNAP and WIC purchases

A separate exemption applies to sales of items purchased with food instruments distributed by the Department of Health and Human Services pursuant to the Supplemental Nutrition Assistance Program (SNAP) or the Women, Infants and Children Special Supplemental Food Program (WIC). This exemption, codified at 36 M.R.S. § 1760(54), applies regardless of whether the item is otherwise a taxable grocery staple exclusion. Instructional Bulletin No. 12 confirms that items otherwise taxable — such as soft drinks, ice, and cold sandwiches — may be purchased exempt when paid for with SNAP or WIC benefits.

Source: 36 M.R.S. § 1752(3-B); 36 M.R.S. § 1760(3); 36 M.R.S. § 1760(54); Maine Revenue Services Instructional Bulletin No. 12

Direct answer: When a sale is made to a Maine customer using a third-party drop shipper, Maine generally requires the party making the retail sale to the Maine end customer—the vendor in the transaction chain that is registered for Maine sales tax—to collect and remit the tax. If a Maine-registered retailer makes a sale and uses a drop shipper (who may or may not be registered or have nexus in Maine) to deliver goods to a Maine customer, the registered retailer remains responsible for sales tax collection. If the sale is from an out-of-state (unregistered) seller to a Maine customer and fulfilled via a Maine-registered drop shipper, the drop shipper must treat the transaction as a taxable retail sale unless the out-of-state seller provides a Maine resale certificate or acceptable exemption documentation.

Why: Under Maine statute and Maine Revenue Services Instructional Bulletin No. 39, the liability to collect tax in a drop shipment scenario turns on which party is making the taxable retail sale to the consumer, and whether the parties making sales for resale or to the end customer are registered with Maine. Specifically:

• If a Maine-registered vendor sells to a Maine customer and uses any third party (drop shipper) for delivery, the vendor must collect tax.
• If an unregistered out-of-state seller sells to a Maine end customer but instructs a registered Maine drop shipper to fulfill the order, Maine views the Maine-registered drop shipper as making a retail sale to the end customer unless proper resale/exemption certificates are received.
• To substantiate an exempt sale for resale when the purchaser is not registered in Maine, the drop shipper may accept a statement indicating the purchaser is not required to register and will resell the property, along with evidence of the purchaser's registration in another state.

Source support:

• Maine Revenue Services Instructional Bulletin No. 39 (“Transportation, Delivery and Freight Charges,” July 2018) and Rule 301 (February 2025), which both address drop shipments, resale documentation, and who is treated as the retailer responsible for tax collection under 36 M.R.S. § 1754-B.

Caution / review status: Not yet human confirmed. Confirmed by citation of official Maine Revenue Services guidance. Practices may change with future updated bulletins; verify with current-year agency publications for recent changes.

Source: Maine Revenue Services Instructional Bulletin No. 39 (July 2018) and Rule 301 (February 2025)

Maine permits a deduction or refund of sales tax previously remitted on accounts later determined to be worthless (bad debts), as authorized by 36 M.R.S. § 1811-A.

Statutory framework

A retailer that has remitted sales tax on a transaction and subsequently determines that all or part of the corresponding account is worthless (a "bad debt"), may claim a deduction on its sales tax return for the period in which the bad debt is written off. This right is provided by 36 M.R.S. § 1811-A(1), which states in part:

> "Any retailer may, in a return filed within 3 years from the date the return on which the tax was paid was required to be filed, deduct bad debts from gross sales."

The statute defines a "bad debt" for Maine sales tax purposes as a debt that has been charged off as uncollectible on the retailer's books and records and for which the retailer is eligible to claim a deduction under Internal Revenue Code, Section 166.

Claim process and timing

• The deduction must be claimed in a return filed within three years from the due date of the original return on which the sales tax was reported. If the deduction is not claimed in the return for the period when the account is written off, an amended return filed within this window may be used.
• If any portion of a previously deducted bad debt is later collected, the retailer must include in the return for the period in which the collection is made the amount so collected, proportionate to the deduction previously claimed. See 36 M.R.S. § 1811-A(2).

Documentation and requirements

• The statute requires that a retailer be eligible to deduct the amount as a bad debt pursuant to IRC § 166 for federal income tax purposes, but otherwise provides no explicit documentation requirements. Practitioners should retain proof of the original sale, evidence the account was written off as worthless, and relevant federal tax documentation in the event of audit.

Limitations

• Bad debts related to sales that were never subject to Maine sales tax, or where tax was not previously remitted, are not deductible.
• If a debt or account, or a portion thereof, is assigned or sold to a third party, only the party who originally remitted the tax (the retailer) may claim the deduction, and only to the extent specified in the statute.
• Sales tax paid on repossessed property may not be claimed as a bad debt deduction.

Source: 36 M.R.S. § 1811-A

Under Maine sales and use tax law, contractors who incorporate tangible personal property (such as building materials) into real property are treated as consumers, not retailers, of those materials. This principle governs tax collection, use of resale certificates, and the distinction between tax on materials and labor.

Contractor as consumer When a contractor uses materials to construct, alter, or improve real property in Maine (e.g., home building, remodeling, grading, paving), the contractor, not the property owner, is the "consumer" for tax purposes. Maine Revenue Services Instructional Bulletin No. 4 states: "A contractor is the consumer of materials that are incorporated into real property and must pay sales or use tax on purchases of such materials." The property owner is not liable for sales tax on the value of the incorporated materials.

Timing and mechanism of tax The contractor must pay Maine sales tax to suppliers at the time of purchasing materials unless those purchases qualify for a specific exemption (such as purchases for resale, discussed below). If tax is not paid at purchase (e.g., on an out-of-state purchase or withdrawal from resale inventory), the contractor is required to self-assess and pay Maine use tax when the goods are withdrawn for use in Maine. Tax is generally due upon purchase or first use in the state, as outlined in 36 M.R.S. §§ 1952, 1861.

Resale certificate limitations Contractors can present a resale certificate when they intend to resell tangible personal property (such as standalone appliances sold directly to the customer), but not for materials that will be incorporated into real property. Resale certificates cannot be used for the bulk of construction materials—the law (36 M.R.S. § 1754-B; MRS Rule 301) and Bulletin No. 4 are explicit: "Materials purchased for incorporation into real property may not be purchased for resale." If a contractor functions as a retailer (selling tangible personal property and separately billing for installation), only those direct, unincorporated goods may be bought tax-exempt for resale—otherwise, tax applies at the point they are used in the project.

Labor vs. fabrication services Labor charges purely for constructing or improving real property (e.g., carpentry, wiring, excavating) are not subject to sales tax in Maine; Bulletin No. 4 confirms: "Charges for labor to improve real property, when the contractor is the consumer of the materials, are not taxable." However, if a contractor fabricates tangible personal property (for example, custom cabinets not yet installed), that fabrication service is taxable if the fabricated property is sold as tangible personal property before installation. Once installed as part of real property, the contractor is again the consumer, and only the material purchase is taxed.

Summary

• Contractors are the consumer for tax purposes when materials are incorporated into real property; they pay sales or use tax on those materials.
• Tax is due at the time of purchase or when materials are withdrawn for use in a project.
• Resale certificates may be used only for items resold without incorporation into realty; otherwise, they do not exempt construction materials from tax.
• Labor separately stated for real property improvement is generally not subject to tax; fabrication labor may be taxable if the product is sold prior to installation.

Source: Maine Revenue Services Instructional Bulletin No. 4 (Dec. 22, 2025), 36 M.R.S. § 1754-B, MRS Rule 301, 36 M.R.S. § 1861, 36 M.R.S. § 1952

Not yet human confirmed.

Maine imposes a use tax on the storage, use, or other consumption in the state of tangible personal property or taxable services when Maine sales tax has not been paid at the time of purchase. Use tax enforces parity between in-state and out-of-state purchases, applying at the same rate and to the same base as sales tax.

Statutory obligation:

• Under 36 M.R.S. § 1861, individuals and businesses owe Maine use tax when they acquire taxable tangible personal property or taxable services for use in Maine without payment of Maine sales tax. This frequently arises from online, mail order, or out-of-state purchases delivered into Maine.

Credit for tax paid elsewhere:

• If sales or use tax was lawfully paid to another jurisdiction, Maine allows a use tax credit for the amount paid, up to the Maine rate. Any difference between the other state’s rate and Maine’s rate must be remitted to Maine (36 M.R.S. § 1862).

Reporting and remittance procedures—Individuals:

• Recent amendments to 36 M.R.S. § 1861-A (2024) codified reporting and estimation options for individual taxpayers. Individuals must generally report and pay use tax on untaxed purchases with a value up to $5,000 per item on their Maine income tax return. For single items over $5,000, a separate return and payment to Maine Revenue Services (MRS) is required by the 15th of the month following purchase.
• Individuals may now elect a statutory estimated use tax liability based on a fixed percentage (set by the assessor) of Maine federal adjusted gross income, rather than itemizing each purchase. This estimation option applies only to items valued at $1,000 or less. These changes were enacted under Public Law 2023 (Ch. 441), effective for tax years beginning in 2024.

Reporting and remittance procedures—Businesses:

• Registered businesses report and pay use tax on their Sales, Use & Service Provider Tax Return. Businesses not registered, but routinely acquiring taxable property for use without tax paid, must register for a "use tax only" account and file as prescribed by MRS.
• Withdrawal of inventory for business or personal use is treated as a taxable use per 36 M.R.S. § 1861-A.

Marketplace facilitator and intermediary rules:

• Marketplace facilitators and similar intermediaries are statutorily obligated to collect and remit use tax on behalf of third-party sellers if the sales are delivered to Maine customers, consistent with MRS guidance and the 2024 statutory amendments.

Recordkeeping:

• Both individuals and businesses must retain documentation of taxable purchases and proof of tax paid, as required by statute and MRS.

Sources of authority:

• Liability and credit rules—36 M.R.S. §§ 1861, 1862
• New reporting and estimation procedures—36 M.R.S. § 1861-A, as amended by PL 2023, Ch. 441 (LD 1452, 2024)
• Procedural details and filing methods—Maine Revenue Services Business Guide and FAQ

Source: 36 M.R.S. § 1861, 36 M.R.S. § 1862, 36 M.R.S. § 1861-A, Public Law 2023, ch. 441 (LD 1452) (2024), Maine Revenue Services Business Guide, Maine Revenue Services - Sales, Use, and Service Provider Tax FAQ