Maine sales tax on invoices (2026 guide)

Maine charges a 5.5% sales tax on retail sales of goods, products transferred electronically and a short list of taxable services. Maine Revenue Services publishes only statewide rates — there's no city or county sales tax to add, so the rate on most invoices is simply 5.5%.

The big change for 2026 is that Maine's separate service provider tax was repealed on January 1, 2026. The services it used to cover — like telecommunications, cable and satellite TV and fabrication services — are now part of the regular sales tax at 5.5%. Most other services, including the work many freelancers and tradespeople do, still aren't taxed.

Maine sales tax rates

Maine requires you to round tax the conventional way: carry the calculation to the third decimal place, round down if the third decimal is 1–4 and up if it's 5–9.

Which services are taxable in Maine?

Maine Revenue Services is clear that there is no tax on services in general. Its business guide gives examples of non-taxable services: personal services like haircuts and massages, personal property services like dry cleaning and pet grooming, and real property services like carpentry, landscaping and house cleaning.

The services that are taxable at 5.5% include:

• rentals of living quarters (taxed at 9%),
• fabrication services (Maine's Instructional Bulletin No. 46 explains what counts),
• telecommunications services and the installation, maintenance or repair of telecommunications equipment, and related ancillary services,
• cable and satellite television or radio services,
• digital audiovisual and digital audio services, and
• extended service contracts on cars and trucks.

When a service becomes part of a taxable sale

Services you provide as part of selling a product are usually part of the taxable price, even if you list them separately. The exception that matters for many small businesses: charges for installation, application or repair labor are not taxable if they're separately stated on the invoice (telecommunications equipment excepted). If you lump labor and parts together, the whole amount is taxable.

Designers and creatives: Maine's bulletin for advertising agencies and graphic designers treats artwork, designs, photographs and brochures as tangible personal property. Tax applies whether you deliver them on paper or electronically, for example as a PDF. If that's your work, read Instructional Bulletin No. 38.

Registering to collect Maine sales tax

You must register with Maine Revenue Services if you sell taxable goods or services from a business location in Maine, among other situations. Registration is free through the Maine Tax Portal, and you get a retailer certificate for each place of business. Certificates don't expire; they stay valid until you cancel them or they're revoked.

Remote sellers. An out-of-state seller must register if its gross revenue from sales delivered into Maine is more than $100,000 in the previous or current calendar year.

Filing. Returns are due by the 15th of the month after the reporting period and must be filed electronically. You file monthly unless your average tax is under $600 a month, in which case you can ask to file less often. Keep your records for six years.

What a Maine sales tax invoice should show

• your business name and address,
• the customer's name and address,
• a unique invoice number and the invoice date,
• a description and price for each item or service,
• separately stated labor or installation charges, if you want them to stay non-taxable,
• sales tax as its own line, and
• the total due.

If you don't show the tax separately, Maine requires a statement on the invoice that the price includes Maine sales tax. You also can't advertise that you'll absorb or not charge the tax.

Resale and exemption certificates

Maine Revenue Services issues resale certificates itself — they're mailed to active registered retailers reporting $3,000 or more in annual gross sales. A customer buying for resale gives you a copy. If a customer buys similar items for resale regularly, the certificate on file can act as a blanket certificate while it remains valid. Accept certificates only in good faith; a resale certificate doesn't cover items the buyer will use itself.

Many nonprofits and other organizations are exempt, but except for government agencies, you should charge tax unless the buyer gives you an exemption certificate issued by Maine Revenue Services. See how to invoice a tax-exempt customer.

A worked example

Suppose you're a handyman in Portland and you supply and install a ceiling fan:

• $150 for the fan (a taxable product), and
• $200 for installation labor, listed on its own line.

Because the installation labor is separately stated, only the fan is taxable: $150 × 5.5% = $8.25 in tax. The invoice total is $150 + $200 + $8.25 = $358.25.

If you'd billed a single $350 "fan supplied and installed," tax would apply to the full $350: $350 × 5.5% = $19.25.

Selling to customers in other states

If you ship goods or deliver taxable services to customers in another state, that state's rules may apply instead of Maine's. Since the Supreme Court's 2018 decision in South Dakota v. Wayfair, states can require out-of-state sellers to register and collect their sales tax once sales into the state pass a threshold the state sets. If you sell across state lines regularly, check the thresholds and registration rules of each state you sell into — and use that state's rate on those invoices.

Common mistakes on Maine invoices

• Still filing service provider tax returns. The tax ended on December 31, 2025; former SPT services now go on the sales tax return.
• Lumping labor and parts together, which makes the labor taxable.
• Not taxing designs delivered by email. Electronic delivery doesn't make artwork tax-free.
• Adding a local sales tax. Maine doesn't have one.
• Keeping records for less than six years.

Quick checklist for Maine invoices

• ✅ Registered through the Maine Tax Portal before your first taxable sale
• ✅ 5.5% on goods and taxable services (higher rates for food, lodging and rentals)
• ✅ Installation and repair labor on its own line
• ✅ Sales tax shown separately, or a "price includes Maine sales tax" statement
• ✅ Resale and exemption certificates on file; records kept six years