Is there sales tax on food in Maine?

What foods are taxable in Maine?

Are meals taxable in Maine?

  • All “meals” served on or off the premises of the retailer.
  • All food and drink prepared by the retailer and ready for consumption without further preparation (Restaurant food – both dine-in and to go, deli and bakery items, etc.)

Do you pay taxes on food in Maine?

The Maine Sales and Use Tax Law provides that sales of prepared food are taxable at a separate rate that is higher than the generally applicable sales tax rate. Prepared food includes meals and all food and drinks that are prepared by a retailer and ready for consumption without further preparation.

What items are exempt from sales tax in Maine?

Traditional Goods or Services

Goods that are subject to sales tax in Maine include physical property, like furniture, home appliances, and motor vehicles. Groceries, Prescription medicine, and gasoline are all tax-exempt.

What is not taxed in Maine?

While the Maine sales tax of 5.5% applies to most transactions, there are certain items that may be exempt from taxation.

Other tax-exempt items in Maine.

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Category Exemption Status
Food and Meals
Medical Services EXEMPT
Newspapers and Magazines
Newspapers EXEMPT *

Are clothes taxed in Maine?

It’s not. Clothing is entirely exempt from sales tax in four states and exempt (or partially exempt) under certain circumstances in eight states.

States where clothing is generally subject to sales tax.

Alabama Kansas Ohio
California Maine South Dakota
Colorado Maryland Tennessee
Connecticut Michigan Texas

How much is tax on take out food in Maine?

Businesses making retail sales in Maine collect sales tax from their customers on tangible personal property items and some services. Maine’s general sales tax rate is 5.5 percent. The state also levies charges of 8 percent on prepared food, lodging and liquor.

Is ice cream taxed in Maine?

Maine’s snack tax was enacted in 1991 when lawmakers and then-Gov. … A 6 percent tax was levied on dozens of foods, including crackers, cookies, pretzels, muffins, frozen yogurt and ice cream.

What is the tax on alcohol in Maine?


✔ Maine’s general sales tax of 5.5% also applies to the purchase of liquor. Maine is an “Alcoholic beverage control state”, in which the sale of liquor and spirits are state-controlled.

Is water taxed in Maine?

All water is taxable. Unsweetened iced tea is taxable. All frozen juice concentrates, including lemonade, are taxable regardless of fruit content. A powdered drink mix that contains powdered milk, such as cocoa, is taxable.

Does Maine have a sales tax?

Sales and use tax rate.

The state of Maine has several sales and use tax rates. The general rate that applies to most sales of tangible personal property and services is 5 percent.

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Who pays sales tax in Maine?

You’ll need to collect sales tax in Maine if you have nexus there. There are two ways that sellers can be tied to a state when it comes to nexus: physical or economic. Physical nexus means having enough tangible presence or activity in a state to merit paying sales tax in that state.

What is taxed in Maine?

Maine levies taxes on “tangible personal property,” which includes physical and digital products, as well as some services. The general sales tax rate is 5.50%. Since there are no local sales taxes, that is the highest rate you will pay anywhere in the state.

Is there tax on shipping in Maine?

Maine: For the most part, delivery charges are exempt from sales tax if these three conditions are met: Shipment is made directly to the purchaser, shipping charges are separately stated, and shipment is made by common or contract carrier or the U.S. mail.

How do I become tax exempt in Maine?

To receive the state’s corporate income tax exemption, an ME nonprofit corporation must be granted 501c3 status from the federal government first. Maine lets the IRS make this determination, and once granted tax exempt status, the nonprofit corporation is automatically exempt from Maine’s corporate income tax.