Maine: Sales Tax Handbook

Maine:

Are Leases and Rentals subject to sales tax?

While Maine's sales tax generally applies to most transactions, certain items have special treatment in many states when it comes to sales taxes. This page describes the taxability of leases and rentals in Maine, including motor vehicles and tangible media property. To learn more, see a full list of taxable and tax-exempt items in Maine.

Motor Vehicles

TAXABLE

In the state of Maine, any long-term auto rentals will be subject to a tax rate of 5%. Any short-term rentals of autos, pickup trucks, or vans who have a gross vehicle weight of less than 26,000 pounds, less than one year will be subject to tax at a rate of 10%.

Tangible Media Property

TAXABLE

In the state of Maine, only leases which are deemed by the state tax assessor to be instead of purchase are treated as sales. In the case of a straight lease, the lessor would pay taxes on the purchase price, with no tax charged to lessee.

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