Sales tax is a tax imposed by state and local governments on the sale of goods and services and is usually calculated as a percentage of the sale price. Sales tax is sometimes referred to as retail sales tax.
In Maine (ME), sales tax is a state-level tax imposed on the sale of most goods and certain services. The state sales tax rate is 5.5% as of my knowledge cutoff in 2023. This tax applies to the retail sale, lease, or rental of tangible personal property and selected services. Some items, such as groceries, prescription drugs, and certain health care items, are exempt from sales tax. Additionally, Maine imposes a higher sales tax rate of 8% on prepared food, lodging, and short-term auto rentals, and a 10% tax on short-term rentals of recreational vehicles and living quarters in mobile homes. Local jurisdictions in Maine do not add additional sales taxes on top of the state rate. Businesses selling taxable goods or services are responsible for collecting the sales tax from customers and remitting it to the Maine Revenue Services.