State guide · ME
Maine sales tax and property tax
One state tax and no local add-on, but a separate rate for meals, rooms, car rentals and cannabis, and a property tax run town by town.
Facts read on official Maine pages on · Checked by Radif Partners · How we calculate
- State sales tax
- 5.5%
- Local sales taxes
- None
- Groceries
- Exempt from the state rate
- Clothing
- Taxed like other goods
- Median property tax
- $3,103
- Effective property rate
- 0.91% · #22 of 51
Maine has a single state sales tax with several rates rather than a single rate with local add-ons. Goods pay 5.5%, unchanged since October 1, 2013, and no town or county adds anything. Prepared food and drinks in licensed places pay 8%, rooms 9%, short car rentals 10%, and adult use cannabis 14% since January 1, 2026. Grocery staples and prescription drugs are exempt, clothing is taxed, and there is never a holiday: a Maine retailer may not even advertise one or offer to absorb the tax. The 2026 changes run in both directions, with streaming video and music now taxed and home medical equipment newly exempt. Property tax is collected by 482 municipalities on the value their assessors set every April 1. The Census median is $3,103, rank 20 of 51, on a $341,900 home, a ratio of 0.91% that ranks 22. Owners who have held a Maine home for 12 months can claim up to $25,000 of value exempt by applying to their town by April 1.
Total to pay
$105.50
Sales tax $5.50 · 5.5% of the price
| Price before tax | $100.00 |
| State tax · 5.5% | $5.50 |
| Local tax · not charged on this item | $0.00 |
| Total | $105.50 |
Rule applied: general state rate. How this is calculated.
Sales tax in Maine
Because Maine's tax is purely a state tax, a receipt on the coast and a receipt in a small inland town are computed the same way. What changes the bill is the kind of purchase. An $800 kayak pays the general 5.5%, $44.00. A $90 restaurant dinner pays 8%, $7.20, and the same rate covers alcohol served on the premises. Three nights at $450 in an inn or a rental cottage pay the 9% lodging rate, $40.50, and a rental car for a week pays 10%. Since there is no local part, leave the local rate in the calculator at zero.
The tax base moved on January 1, 2026. Maine repealed its separate Service Provider Tax, so cable, satellite and telecommunications services now sit inside the 5.5% sales tax, and streaming video and music subscriptions became taxable at the same rate. Adult use cannabis went from 10% to 14%, while medical cannabis stays at 5.5%. In the other direction, durable medical equipment, breast pumps and mobility equipment for home use became exempt.
On food, the line is drawn at "grocery staples": they are exempt, while candy and confections, confectionery spreads included, soft drinks and prepared food are taxed, the last at 8%. Every new tire and new lead-acid battery carries a $1.00 recycling fee in addition to the tax. Goods bought from sellers that did not charge Maine tax owe use tax directly to the State at the rate that would have applied.
What the state charges, item by item
| Item | State rate | Local tax | Rule |
|---|---|---|---|
| Most goods | 5.5% | no | General 5.5% state rate (unchanged since October 1, 2013 in the MRS rate table). Higher state rates: 8% prepared food and on-premises alcohol, 9% lodging, 10% short-term auto rental, 14% adult use cannabis (since January 1, 2026). No local sales tax. |
| Groceries (food for home) | 0% | no | 'Grocery staples' are exempt; candy and confections (including confectionery spreads), soft drinks and prepared food are taxable, prepared food at 8%. |
| Clothing | 5.5% | no | No clothing exemption; clothing is tangible personal property taxed at 5.5%. |
| Prescription drugs | 0% | no | |
| Prepared food and alcoholic drinks in licensed establishments | 8% | ||
| Rentals of lodging (living quarters) | 9% | 9% since January 1, 2016 (8% before). | |
| Short-term auto rental | 10% | ||
| Adult use cannabis and cannabis products | 14% | Raised from 10% on January 1, 2026; medical cannabis stays at 5.5% (8% for prepared food containing it). |
Local sales taxes
Maine has no local sales taxes.
Sales tax holidays in 2026
Maine has no sales tax holiday; retailers are even prohibited from advertising a 'tax holiday' or absorbing the tax.
Worth knowing about Maine sales tax
- Since January 1, 2026 streaming video and music subscriptions ('digital audiovisual and digital audio services') are taxed at 5.5% in Maine. source
- Maine repealed its separate Service Provider Tax on January 1, 2026; cable, satellite and telecom services moved into the 5.5% sales tax. source
- Adult use cannabis is taxed at 14% since January 1, 2026, up from 10%. source
- Durable medical equipment, breast pumps and mobility-enhancing equipment for home use became exempt on January 1, 2026. source
- Hotel and short-term lodging stays are taxed at 9%, restaurant meals at 8%, and short-term car rentals at 10%. source
- A $1.00 recycling assistance fee applies to each new tire and new lead-acid battery, on top of sales tax. source
- It is illegal for a Maine retailer to advertise that it will not collect sales tax or hold a 'tax holiday'. source
Property tax in Maine
Maine's property tax is a municipal tax. Each of the 482 municipalities assesses property at "just value" as of April 1 and sends one bill that also carries the county and school shares; payment dates are set by the town. Where no town exists, in the Unorganized Territory, Maine Revenue Services acts as the assessor. Each year the state also measures every municipality against actual sales to set its state valuation, the equalized figure used to share out school aid, revenue sharing and county taxes.
The homestead exemption takes up to $25,000 of just value off a permanent residence, but only after 12 months of owning a home in Maine, and only if you apply to the local assessor by April 1. The figure is adjusted by the town's certified assessment ratio: in a town assessing at 90% of just value, the exemption is worth $22,500 of assessed value. With a typical Maine ratio of 0.91%, a $375,000 house pays roughly $3,405 a year, and the full exemption trims about $227 from it. Wartime veterans 62 or older or fully disabled take off $6,000, legally blind owners $4,000, and solar panels are exempt when claimed by the same April 1 deadline.
Two state programs help beyond the bill. The Property Tax Fairness Credit refunds part of the property tax or rent through the Maine income tax return. The State Property Tax Deferral Program pays a qualifying owner's homestead taxes and is repaid, with interest, when the owner leaves the program or the home is sold; 2026 applications closed on April 1. Some towns run their own senior deferral or assistance programs by ordinance.
Property tax on a home in Maine
Typical bill per year
$3,104
| Per month | $259 |
| Median effective rate in Maine | 0.91% |
| Median bill paid | $3,103 |
Census median ratio; your county, city and school district set the real levy.
| Census figure | Maine |
|---|---|
| Median home value (owner-occupied) | $341,900 |
| Median real estate taxes paid | $3,103 |
| with a mortgage | $3,318 |
| without a mortgage | $2,818 |
| Effective rate (tax ÷ value) | 0.91% |
| Rank by effective rate (1 = highest) | 22 of 51 |
| Rank by median bill | 20 of 51 |
How the taxable value is set
Municipal assessors value property at 'just value' as of April 1. Each year Maine Revenue Services studies sales in all municipalities to set the state valuation (full equalized value), used to allocate school aid, revenue sharing and county taxes. Partial exemptions are adjusted by each municipality's certified assessment ratio. Who levies the tax: local: 482 municipalities assess and bill property tax (including county and school shares); Maine Revenue Services acts as assessor for the Unorganized Territory and sets the annual state valuation
Other property tax relief
- Veteran Exemption. $6,000 of just value for wartime veterans 62+ or 100% disabled veterans; $50,000 for veterans with a federal specially adapted housing grant. source
- Blind Exemption. $4,000 of just value for legally blind owners. source
- Property Tax Fairness Credit. Refundable income tax credit for part of the property tax or rent paid by eligible Maine residents, claimed on Form 1040ME, Schedule PTFC/STFC. source
- State Property Tax Deferral Program. The State pays the homestead's property taxes (plus up to two years of delinquent taxes) until withdrawal, then the deferred amount is repaid with interest; 2026 applications were accepted January 1 - April 1, 2026. source
Worth knowing about Maine property tax
- The homestead exemption requires 12 months of ownership in Maine and an application to the town by April 1. source
- Maine Revenue Services is the local assessor for the Unorganized Territory, the parts of the state with no organized town. source
- Solar panels and other renewable energy equipment are exempt from property tax if the owner applies by April 1. source
- Towns may adopt their own senior property tax deferral or property tax assistance programs by ordinance. source
- Under the state deferral program, the State pays a qualifying owner's homestead taxes and is repaid when the owner withdraws or the home changes hands. source