Maine Vehicle Sales Tax & Fees [+Calculator]
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Many states impose car sales tax, and in Maine, the sales tax for vehicle purchases is 5.5%
When it comes to purchasing a vehicle, you have to consider all the costs. In some cases, the state sales tax can add up to thousands of dollars to the final cost of the vehicle.
Fortunately, the car sales tax in Maine is always 5.5%, as local governments do not add any other taxes.
Keep reading to learn everything you need to know about Maine’s vehicle sales tax so you can properly budget your next car purchase.
Key Takeaways
- Maine imposes a flat 5.50% sales tax on the purchase price of both new and used vehicles, applicable statewide without any additional local sales tax.
- For vehicles with a trade-in, you only pay sales tax on the price difference after subtracting the trade-in value.
- Besides sales tax, car buyers in Maine should also consider other fees, including DMV/state fees like title and registration, and dealership fees, such as documentation fees.
- Maine offers sales tax exemptions under certain conditions, such as vehicle transfers to entities where the seller holds significant ownership.
Table of Contents
- Key Takeaways
- How Much Is the Car Sales Tax in Maine?
- How to Calculate Maine Sales Tax on a Car
- Maine Sales Tax Calculator
- Maine's Excise Tax for Vehicles
- Do I Have to Pay Sales Tax on a Used Car?
- Which City Has the Highest Tax? Which City Has the Lowest Tax?
- How Are Car Trade-ins Taxed in Maine?
- Car Sales Tax for Private Sales in Maine
- Tax on Rebates & Dealer Incentives
- Maine Tax, Title, and Registration Fees
- When Sales Tax is Exempt in Maine
- Maine EV Rebates & Incentives
- Best Car Deals by Category
- Frequently Asked Questions
How Much Is the Car Sales Tax in Maine?
The car sales tax in Maine is 5.50% of the purchase price of the vehicle.
This state sales tax also applies if you purchase the vehicle out of state.
In short, if the vehicle is registered in the state of Maine, then the Maine car sales tax of 5.50% will be applied.
For example, if you purchase a new vehicle in Maine for $40,000, then you will have to pay 5.50% of the purchase price as the state sales tax or $2,200.
How to Calculate Maine Sales Tax on a Car
Calculating car sales tax in Maine is simple, just add 5.5% to the car sticker price. Our tool below can ensure accurate calculations:
Maine Sales Tax Calculator
Maine's Excise Tax for Vehicles
Another critical vehicle tax to know in Maine is the Excise tax. Maine charges all vehicle owners a yearly tax called the annual excise tax.
Car owners, as well as those who own stock vehicles, mobile homes, and trailers, must pay based on the car’s age and the MSRP. Here’s a breakdown:
- For the first year after the car's model year, the tax rate is 24 mills ($24 per $1,000 of the car's original MSRP).
- In the second year, the rate drops to 17.5 mills ($17.50 per $1,000 of MSRP).
- In the third year, it's 13.5 mills ($13.50 per $1,000 of MSRP).
- In the fourth year, the rate is 10 mills ($10 per $1,000 of MSRP).
- In the fifth and subsequent years, the rate is 6.5 mills ($6.50 per $1,000 of MSRP).
To calculate the excise tax, you multiply the car's MSRP by the appropriate mill rate based on the car's age
This tax helps fund roadway repair and construction throughout the state.
Do I Have to Pay Sales Tax on a Used Car?
Yes, the state sales tax in Maine applies to both new and used vehicles. You must pay sales tax based on the purchase price of the vehicle.
Note that you cannot avoid sales tax with an uncharacteristically low official purchase price. If Maine’s Revenue Services suspects attempted evasion, they will determine sales tax based on the fair market value of the vehicle.
Underreporting the purchase price of a used car to avoid sales tax is against the law. Doing so may lead to a $5,000 fine.
Which City Has the Highest Tax? Which City Has the Lowest Tax?
All counties and cities in Maine have a flat 5.50% sales tax rate
How Are Car Trade-ins Taxed in Maine?
You only pay the tax on the difference between the value of the trade-in and the sale of the vehicle you are purchasing.
For instance, if you are purchasing a used vehicle for $20,000 and the trade-in value of your vehicle is $5,000, you will pay a 5.50% sales tax on the $15,000 difference.
Car Sales Tax for Private Sales in Maine
The 5.50% sales tax rate applies to private sales in Maine.
Tax on Rebates & Dealer Incentives
In the state of Maine, the vehicle sales tax is calculated based on the original sticker price, regardless of incentives.
For example, a car may have an MSRP of $10,000. Dealer incentives may bring the price to $7,000. You must still pay sales tax on the $10,000 sticker price.
Maine Tax, Title, and Registration Fees
Besides the state sales tax on the vehicle's purchase price, other fees will apply. The major fees that you will have to consider are the DMV fees and the dealership fees.
Here are estimates:
| Sales Tax | ||
| Registration fee | ||
| Title Fee | ||
| Plate Transfer | ||
| Documentation fee |
Read our guide to learn how to transfer a car title in Maine
DMV/State Fees
The DMV/state fees can include title, registration, smog transfer, zero-emissions parking, and more. The median doc fee in Maine is $499.
Dealership Fees
The dealership fees will include documentation fees. This is the fee that the dealership applies to handle the paperwork needed to complete the sale of the vehicle.
You may be able to negotiate down some dealer fees. Read our guide on negotiating dealer fees for more information.
When Sales Tax is Exempt in Maine
In the state of Maine, you can be exempted from sales tax if you transfer the vehicle to a corporation, trust, partnership, or limited liability partnership if the seller owns 50% or more of the common stock.
Also, sales tax is exempt to those who are not a resident of Maine. For instance, if someone from Massachusetts purchases a vehicle in Maine and intends to register the vehicle in Massachusetts, then that person will not be subject to the Maine sales tax.
Finally, the sale tax is exempt for Maine businesses who purchase the vehicle and intend to use the vehicle outside of the state.
Maine EV Rebates & Incentives
Maine provides rebates for purchases of electric vehicles (EVs). For individuals, businesses, and organizations, the rebate is $1,000 for an all-electric vehicle. In addition, qualified low-income residents can get rebates of $7,500 for a new all-electric vehicle.
Maine governmental and tribal entities can also get EV rebates. New all-electric vehicles can receive a $7,500 rebate, while new hybrid vehicles can get a $2,000 rebate.
Select Maine non-profit organizations can get EV rebates of $7,500 for new all-electric vehicles and $2,500 for new hybrid vehicles.
Learn more about the federal EV tax rebate here.
Tax information and rates are subject to change, please be sure to verify with your local DMV.
