If your limited liability company (LLC) sells physical products or certain types of services, you will need to collect and pay sales tax. In Maine, the first step is visiting the revenue services website and registering for sales tax in order to acquire a seller’s permit, or sales tax permit.
What Products and Services Are Subject to Sales Tax in Maine?
Sales of tangible property are subject to sales tax in Maine. Services subject to sales tax include rent to purchase items, telecommunications, cable services, and home support services. Groceries and prescription drugs are exempt from sales tax in Maine.
Maine Sales Tax Rate
The sales tax rate in Maine is 5.5%.
Five states have no sales tax. Colorado has the lowest sales tax at 2.9%, while California has the highest rate at 7.25%.
How to Register for Maine Sales Tax
In Maine, acquire a seller’s permit by following the revenue department’s detailed instructions for registration:
- Visit the Maine revenue department’s e-business services website.
- Fill out the sales and use tax registration form.
- There is no fee to register for sales and use tax in Maine.
Use our Sales Tax Calculator to calculate taxes and total purchase amount.
In Maine, and across the country, collecting sales tax is a must if you want to avoid potentially heavy fines and even closure. It’s crucial that you follow your state’s laws, and you might consider consulting with an accountant or tax attorney to make sure you’re in full compliance.