Maine state seal

MaineSales Tax

A Complete Guide For Businesses

Automate My MaineSales Tax Filings

State Rate
5.50%

Local Tax
no

Phone
(207) 624-9693

General requirements

Maine is a destination-based state (sales are taxed where the buyer is located).

  • Sales tax is charged on the sale price on retail sales of tangible personal property (TPP) and certain lease arrangements
  • There is no tax on the sale of services in general, but certain services are subject to sales tax while others are subject to the service provider tax (imposed on the seller)
  • Items purchased for resale aren’t taxed

Businesses may file online using the Sales, Use, and Service Provider Tax Filing System.

Rates

The Maine state sales tax rate is 5.5%. No additional local taxes are charged.

The tax rate is 9% on certain rentals of living quarters. The tax rate is 10% on short-term rentals of automobiles including pickup trucks and vans.

How food is taxed

The tax rate is 8% on sales of prepared food and alcoholic drinks sold in establishments that are licensed for on-premises consumption of liquor.

Grocery staples sold for human consumption are exempt from the state sales tax.

Nexus in Maine

Business activities that establish a tax presence in the state include:

  • Maintaining a business location in Maine, including any kind of office
  • Having employees or representatives who solicit and accept orders in Maine

Economic nexus in Maine:

  • According to state law, out-of-state sellers whose sales into Maine exceed $100,000 gross revenue or 200 separate transactions in the current or previous calendar year are required to register with the state, collect sales tax on sales to Maine, and remit that sales tax to the state.
  • Effective date: July 1, 2018
  • See this state alert or portal for remote sellers for more information.

More information about nexus in Maine can be found in this guide.

Filing schedule

Filing frequencies are based on the estimated tax liability that you report when you register with the state.

Returns are due on the 15th of the month after the filing period ends. Returns are required even when no tax is due.

Registering to collect sales tax in Maine

You can register your business with Maine revenue services online or by mailing the application to:


Central Registration Section
P.O. Box 1057
Augusta, Maine 04332-1057

Penalties

Interest is charged on late payments. Find a listing of current interest rates here.

Penalties are charged as follows:

  • Failure to file: $25.00 or 10% of the tax due, whichever is greater and if the return is not filed within 60 days after the person receives a formal demand, the penalty is $25.00 or 25% of the tax due
  • Failure to pay tax: 1% of the unpaid tax for each month unpaid, up to a limit of 25% of the unpaid tax and an additional penalty of 25% of the tax due is charged if payment of the tax due is not made within 10 days after you receive a demand for payment

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