What is the Maine sales tax? Maine: Sales Tax Handbook

Maine:

Maine Sales Tax Rate ME Sales Tax 2016

State Sales Tax Local Sales Tax Range Average Local Tax Average Combined Tax Max Combined Tax
5.50% N/A N/A 5.50% 5.5%

2016 Maine Sales Tax Handbook

These rankings show how the Maine sales tax compares to the other 49 states + DC. The state with the highest sales tax is ranked 1st, and states with the same sales tax have a tie rank.

Maine's Sales Tax By The Numbers:

Maine has a lower-than-average sales tax, including when compared to states that allow localities to collect sales taxes (Maine does not).


Rankings by Average State + Local Sales Tax:

  Ranked 38th highest by combined state + local sales tax

  Ranked 35th highest by per capita revenue from state + local sales taxes ($801 per capita)


Rankings by State Sales Tax Only:

  Ranked 10th highest by state sales tax rate

  Ranked 25th highest by per capita revenue from the statewide sales tax ($807 per capita)



Download Maine datasheet Printable PDF Maine Sales Tax Datasheet

Maine has a statewide sales tax rate of 5.50%, which has been in place since 1951.

Unlike many other states, Maine doesn't allow municipal governments to collect a local option sales tax. Therefore, sales tax rates will be the same across the entire state.

This page provides an overview of the sales tax rates and laws in Maine. If you are a business owner and need to learn more about things like getting a sales tax permit, filing a sales tax return, or making tax-exempt purchases for resale see the Maine Sales Tax Handbook's Table of Contents above.

What is exempt from sales taxes in Maine?

Many states have special sales tax rates that apply to the purchase of certain types of goods, or fully exempt them from the sales tax altogether. Here's how Maine taxes five types of commonly-exempted goods:


Clothing

  5.5%

Groceries

  EXEMPT

Prepared Food

  7%

Prescription Drugs

  EXEMPT

OTC Drugs

  5.5%

For more details on what types of goods are specifically exempt from the Maine sales tax see Maine sales tax exemptions. To learn more about what types of transactions are subject to the sales tax to begin with, see what purchases are taxable in Maine? Taxation of vehicle purchases in particular are discussed in the page about Maine's sales tax on cars.

Are services subject to sales tax in Maine?

"Goods" refers to the sale of tangible personal property, which are generally taxable. "Services" refers to the sale of labor or a non-tangible benefit. In Maine, specified services are taxable.

About the Maine Sales Tax

The state of Maine has a simple sales tax system, and utilizes a flat state tax rate that was last raised in 2007.

This state has special 8% sales tax rates for lodging (including hotels and motels) and prepared food, as well as a 10% tax on short-term vehicle rentals. These percentages are all officially sales taxes.

Is the Maine Sales Tax Destination-Based or Origin-Based?

Maine is a destination-based sales tax state, which means that sales tax rates are determined by the location of the buyer when the transaction is completed. This means that, for orders placed via the internet/mail by a customer within Maine from a Maine vendor, the vendor must collect a sales tax rate applicable at the buyer's address (including any applicable local sales taxes). This can significantly increase the complication of filing your sales tax return, because different sales tax rates must be charged to different buyers based on their location.

Is Maine a Streamlined Sales Tax State?

Maine is not a member of the Streamlined Sales and Use Tax Agreement. The SSUTA is an agreement adopted by about half of states that ensures that their sales tax laws are simplified to lower the costs associated with compliance.

Contact the Maine Revenue Services

The Maine Sales Tax is administered by the Maine Revenue Services. You can learn more by visiting the sales tax information website at www.maine.gov.

Phone numbers for the Sales Tax division of the Revenue Services are as follows:

  • Local Phone: (207) 624-9693

Learn More: Our Book Recommendations

If you would like to learn more about how to manage your Maine sales taxes, we recommend the following books:


Small Business Taxes For Dummies

This introductury book assists both current and aspiring small business owners with important tax planning issues, and covers a wide variety of small business tax topics.

Buy on Amaxon

A Guide to Sales and Use Tax

This book provides information and insights on how to comply with a multitude of sales and use tax laws and regulations. This is our recommendation if you need an in-depth look into sales taxes.

Buy on Amaxon

Simplify Maine sales tax compliance! We provide sales tax rate databases for businesses who manage their own sales taxes, and can also connect you with firms that can completely automate the sales tax calculation and filing process. Click here to get more information.


Maine Sales Tax Rates by Zip Code:

Need an updated list of Maine sales tax rates for your business? Download our Maine sales tax database!


** This Document Provided By SalesTaxHandbook **
Source: http://www.salestaxhandbook.com/maine