Maine — Sales & Use Tax

Maine imposes a sales tax on the value of tangible personal property, products transferred electronically, and taxable services sold at retail in the state. Value is measured by the sale price.

Source: 36 M.R.S. § 1811

## Standard Rate

For sales occurring on or after October 1, 2019, the base rate is 5.5% on the value of all tangible personal property and taxable services.

Source: 36 M.R.S. § 1811

Maine does not permit local sales taxes. The 5.5% state rate applies uniformly across all counties and municipalities.

## Category-Specific Rates

Certain transactions are taxed at higher rates:

8% rate: Liquor sold in licensed establishments as defined in Title 28-A, § 2(15), in accordance with Title 28-A, chapter 43.

Source: 36 M.R.S. § 1811(1)(D)(2)

9% rate: Rental of living quarters in any hotel, rooming house, or tourist or trailer camp.

Source: 36 M.R.S. § 1811(1)(D)(3)

10% rate: Rental for a period of less than one year of (a) an automobile, (b) a pickup truck or van with a gross vehicle weight of less than 26,000 pounds rented from a person primarily engaged in the business of renting automobiles, or (c) a loaner vehicle provided other than to a motor vehicle dealer's service customers pursuant to a manufacturer's or dealer's warranty.

Source: 36 M.R.S. § 1811(1)(D)(4)

14% rate: Adult use cannabis, adult use cannabis products and, if sold by a person to an individual who is not a qualifying patient, cannabis and cannabis products. This rate applies to sales occurring on or after January 1, 2026. Before January 1, 2026, the applicable rate was 10%.

Source: 36 M.R.S. § 1811(1)(D)(5)

## Tangible Personal Property

The statute imposes tax on "tangible personal property" without providing an exhaustive definition in the tax-imposition section. Maine Revenue Services guidance historically describes tangible personal property as anything that can be seen, felt, and touched, including vehicles, appliances, furniture, clothing, and similar physical items.

Source: MRS Business Guide to Sales, Fuel & Special Tax (October 16, 2023)

## Taxable Services

Sales of services in general are not taxable in Maine. Only specifically enumerated services are subject to sales tax.

Source: MRS Business Guide to Sales, Fuel & Special Tax (October 16, 2023)

Taxable services subject to sales tax include the rental of living quarters in a hotel, rooming house, or tourist or trailer camp; the transmission and distribution of electricity; the rental or lease of an automobile, camper trailer, or motor home; the rental or lease of a truck or van with a gross vehicle weight of less than 26,000 from a person engaged in the business of renting automobiles; the sale of an extended service contract for an automobile or truck; and the sale of prepaid calling service.

Source: Maine Revenue Services Sales and Use Tax FAQ

## Service Provider Tax Repeal and Expanded Sales Tax Base

Effective January 1, 2026, Maine repealed its separate Service Provider Tax (SPT), which had been imposed under former 36 M.R.S. Chapter 358, and moved previously taxable services into the standard 5.5% sales tax base. The legislature enacted this change as part of the biennial budget bill, P.L. 2025, c. 388, Pt. G, which repealed the SPT statute at 36 M.R.S. § 2552 effective January 1, 2026.

The services that migrated from the SPT into the sales tax base include cable and satellite television services, telecommunications services, fabrication services, and equipment rentals under rental-purchase agreements. All such services are now taxed at the standard 5.5% sales tax rate when sold at retail in Maine.

Digital audio and audiovisual services

Also effective January 1, 2026, P.L. 2025, c. 388, Pt. G added digital audiovisual works and digital audio works to the sales tax base. The statute defines "digital audiovisual and digital audio services" as the electronic transfer of digital audiovisual works or digital audio works to an end user. This category includes subscription streaming services for video and music delivered electronically. Sales of digital audiovisual and digital audio services are taxable at the standard 5.5% rate.

Registration transition

Providers that were registered only for the Service Provider Tax were required to register for Maine Sales and Use Tax for return periods beginning January 1, 2026. The final SPT return covered the period ending December 31, 2025, and was due January 15, 2026.

Source: P.L. 2025, c. 388, Pt. G; Maine Revenue Services General Informational Bulletin No. 115 (October 17, 2025)

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

A marketplace facilitator is considered a retailer for each sale of tangible personal property or taxable services for delivery into Maine that the facilitator facilitates through its marketplace. The facilitator must collect and remit sales tax on all such sales, including sales made on behalf of third-party marketplace sellers.

A marketplace facilitator must register if its gross sales of tangible personal property or taxable services into Maine exceed $100,000 in the previous or current calendar year. Gross sales include both sales facilitated on behalf of marketplace sellers and direct sales made by the facilitator itself. Maine eliminated the 200-transaction threshold effective January 1, 2022.

Marketplace sellers exclude facilitated sales when calculating their own economic nexus threshold, provided the facilitator has given the seller a written statement confirming it will collect and remit the tax.

Source: 36 M.R.S. § 1951-C, 36 M.R.S. § 1754-B(1-B)(K)

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