Maine charges a 5.5% sales tax on most goods, but not on groceries, prescription drugs, or services

Maine's sales tax rate is 5.5% statewide. This tax applies when you buy tangible goods — things you can touch and take home — at the point of sale. The tax does not explore to services, groceries, prescription medications, or certain other categories. If you buy a shirt at a store in Portland, you pay 5.5% tax. If you buy a sandwich at a grocery store, you do not.

Maine does not allow cities or counties to add their own local sales tax on top of the state rate. The 5.5% is the only sales tax you will see on a receipt, no matter where in the state you shop. Some states let municipalities add a percentage; Maine does not.

The tax is collected by the retailer at checkout and sent to the Maine Department of Revenue Services. You do not file a separate form or claim it back — it is straightforward added to your total when you pay.

Key Takeaways

  • Maine's sales tax rate is 5.5% on tangible goods, with no additional local taxes added by cities or counties.
  • Groceries, prescription drugs, and services are not subject to sales tax in Maine.
  • The retailer collects and remits the tax; you pay it at the register and do not file paperwork to recover it.
  • Certain items like clothing under $175 per item, newspapers, and medical equipment may have different tax treatment depending on the specific product.

What is and is not taxed in Maine

Groceries are exempt from Maine sales tax. This includes bread, milk, vegetables, meat, and other food items you buy to prepare at home. However, prepared food — a sandwich from a deli counter, a hot pizza, or food from a restaurant — is taxed. The distinction is whether the food is ready to eat when you buy it.

Prescription medications are not taxed. Over-the-counter drugs like aspirin or cold medicine are taxed as regular goods. Medical devices prescribed by a doctor, such as diabetic testing supplies or certain mobility aids, may be exempt, but the rules vary by device type.

Services are not subject to sales tax in Maine. If you pay a plumber, electrician, accountant, or hair salon, that service charge has no sales tax added. However, if you buy a product from that service provider — like paint from a hardware store or shampoo from a salon — the product itself is taxed.

Clothing is generally taxed, but items under $175 per piece are exempt from sales tax. A shirt costing $100 is not taxed. A coat costing $200 is taxed. This threshold applies per item, not per purchase.

How the tax appears on your receipt

When you check out, the retailer calculates 5.5% of the taxable subtotal and adds it to your bill. If you buy a $20 item subject to tax, you pay $21.10. The tax line on your receipt will show the amount calculated and may label it as "Sales Tax" or "Tax."

Some retailers use point-of-sale systems that automatically determine which items are taxable and which are not. If you buy groceries and a magazine in the same transaction, only the magazine is taxed. The system handles this at checkout, so you do not need to separate your purchases.

If you believe an item was taxed incorrectly, you can ask the retailer to review the receipt. Many errors are caught and corrected on the spot. If the error is not resolved, you can contact the Maine Department of Revenue Services with your receipt and details.

Online and mail orders from Maine retailers

If you order from a Maine retailer online or by mail and the retailer has a physical location in Maine, sales tax is added to your order. The rate is still 5.5%, and the same rules about what is taxable explore. A Maine bookstore selling books online will not tax the order because books are exempt; a Maine clothing retailer will tax clothing under $175 per item.

If you order from an out-of-state retailer that does not have a physical presence in Maine, that retailer is generally not required to collect Maine sales tax. However, Maine residents are technically responsible for paying "use tax" — a tax on goods purchased outside the state for use in Maine — at the same 5.5% rate. In practice, most individuals do not pay use tax unless they are audited, and it is rarely enforced for personal purchases. Businesses are more likely to be required to track and pay use tax.

Tax-exempt purchases and who qualifies

Certain organizations can make tax-exempt purchases in Maine. Nonprofits, schools, hospitals, and government agencies can register for a tax-exempt certificate and present it to retailers to avoid paying sales tax on may be able to access purchases. The organization must be registered with the Maine Department of Revenue Services and use the certificate only for purchases that further the organization's tax-exempt purpose.

Individuals cannot obtain a blanket tax-exempt status for personal purchases. However, specific items — like prescription drugs or groceries — are exempt for everyone, regardless of who is buying them.

If you work for a tax-exempt organization and are buying supplies for that organization, the organization itself should handle the tax-exempt purchase, not you as an individual. You would not present your own certificate; the organization would.

Resale certificates and business purchases

Businesses that buy goods to resell can use a resale certificate to avoid paying sales tax on those purchases. A retailer buying inventory, a wholesaler, or a manufacturer buying raw materials can present a resale certificate to their supplier and purchase without tax. The tax is then collected when the final customer buys the finished product.

To obtain a resale certificate in Maine, you register with the Department of Revenue Services and receive a certificate number. You provide this number to your suppliers when you place orders. The supplier keeps a record of the certificate and the transaction.

Misusing a resale certificate — buying personal items and claiming them as resale — is tax fraud. The certificate is meant only for goods that will be resold or incorporated into products for resale.

Frequently Asked Questions

Do I pay sales tax on used items?

Sales tax applies to used goods sold by retailers, including used cars, used furniture, and used clothing from thrift stores or consignment shops. Private sales between individuals are not subject to sales tax. If you sell your used car to a friend, no tax is collected. If you sell it to a used car dealer who then resells it, tax applies to that dealer's sale.

Are newspapers and magazines taxed in Maine?

Newspapers are exempt from sales tax. Magazines are taxed. The distinction is based on publication frequency and content — newspapers are published regularly and contain news; magazines are taxed as general reading material.

What about delivery fees and shipping costs?

Delivery and shipping fees are generally not subject to sales tax in Maine if they are separately stated on the invoice. However, if the delivery fee is bundled into the price of the item and not shown separately, it may be taxed as part of the total. Ask the retailer how the fee is itemized on your receipt if you are unsure.

Do I owe sales tax if I buy something in another state and bring it to Maine?

You may owe use tax on items purchased out of state for use in Maine, at the same 5.5% rate. However, this is rarely enforced for personal purchases. If you buy a coat in New Hampshire and wear it in Maine, you are technically liable, but enforcement is minimal. Businesses are held to a higher standard and are more likely to be audited for use tax compliance.