Welcome to our handy guide on Maine sales tax. We'll walk you through everything you need to know, from the specific sales tax rates in different counties and cities across Maine to answering some of the most common questions. Plus, we'll guide you on how to efficiently collect and file your sales tax in Maine.
Sales Tax Rate
Maine Revenue Services
Physical Nexus in MainePhysical nexus in Maine is like having a tangible piece of your business anchored in the state. This could be:
Economic Nexus in MaineEconomic nexus is about your business’s financial waves in Maine. It kicks in if, during the current or previous year, you:
Affiliate Nexus in MaineAffiliate nexus comes into play with your business relationships in Maine. You might have affiliate nexus if:
Click-Through Nexus in MaineClick-through nexus sets sail when you've got an agreement with a Maine-based affiliate who sends customers to you via a website link or other means, generating over $10,000 in sales from those referrals in the previous year.
Marketplace Nexus in MaineMarketplace nexus is for those sailing the online marketplace seas. In Maine, marketplace facilitators must collect and remit sales tax for their sellers if their sales, or combined sales with marketplace sellers, meet Maine's economic nexus thresholds.
Marshmallow fluff is tax-free. Maine really knows how to sweeten the deal.
Cost of Registering for a Maine Sales Tax LicenseGreat news! It’s totally free, so you can steer your resources toward mastering sales tax compliance.
Do You Need an EIN to Register?Yep, you’ll need a federal tax ID number or EIN to register for your Maine sales tax license. If you don’t have one yet, you can get it for free from the IRS website. If you're a sole proprietor without employees, you can use your Social Security number instead.
Additional Maine Agency RegistrationsDepending on your business, you might need to register at a few more Maine agencies:
Is Maine an Origin or Destination Sales Tax State?Maine is all about destination-based sales tax. This means the sales tax is tied to where your customer takes possession of the item or where it's delivered. If your business is anchored in Maine, you'll need to collect sales tax at the rate that applies to your buyer's location, regardless of your business's location.
What Sales are Subject to Sales Tax in Maine?In Maine, most tangible personal property and some services are subject to sales tax. Here’s a glimpse of what’s usually taxable:
Is Software as a Service (SaaS) Taxed in Maine?Yes, the state views SaaS as a taxable service, especially when the software is remotely accessed and mainly used within Maine.
What is Exempt from Maine Sales Tax?Here are some items and services that can bypass the tax net:
Who is Eligible for Maine Sales Tax Exemptions?Maine’s sales tax exemptions are typically issued to:
What To Do If Your Customer is Exempt from Sales Tax in Maine?If your customer is exempt from sales tax, be sure to get a completed Maine Sales Tax Exemption Certificate from them. Keep this certificate like a valuable keepsake for tax-exempt sales documentation.
What if You Lose a Maine Sales Tax Exemption Certificate?Misplaced a certificate? Just reach out to your exempt customer and ask for a new one. Keeping precise records of all tax-exempt transactions and their corresponding certificates is your compass for staying on course with Maine’s sales tax regulations.
Maine charges a wild blueberry tax. It’s a little extra for those tiny blue treasures, but they taste unlike any other blueberry I’ve ever had. It’s like a sweeter version of a wild Swedish blueberry.
What If a Filing Date Falls on a Weekend or Holiday?No worries! If your filing date falls on a weekend or holiday, you get an extension until the next business day.
How to File a Maine Sales Tax ReturnFiling your Maine sales tax return is as straightforward as following a lighthouse’s beam. Here’s how:
Penalties for Late Filing in MaineWatch out for these penalties if you miss your filing or payment deadlines:
Sales Tax Incentives in MaineMaine offers some nifty sales tax incentives:
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