ME
Maine Small Business Tax Guide
Maine sales and income tax in the words of the Maine Revised Statutes, alongside IRS federal points. Educational overview, not tax advice.
Disclaimer: This page is educational content only. Tax laws change, and your situation may differ. It is not legal, tax, or financial advice. Consult a qualified professional licensed in Maine before making filing or planning decisions.
Tax landscape for small businesses
Maine figures here are quoted from the Maine Revised Statutes on the Maine Legislature's website, whose pages show the date their data was extracted; federal figures come from the IRS. Check Maine Revenue Services' current tables before you file.
36 M.R.S. §1811 (Maine, page data extracted October 5, 2026) says "For sales occurring on or after October 1, 2019, the rate of tax is 5.5% on the value of all tangible personal property and taxable services, except the rate of tax is:" The first exception it lists is "Eight percent on the value of prepared food".
For individual income tax, 36 M.R.S. §5111 (Maine, page data extracted October 5, 2026) sets a table "For tax years beginning on or after January 1, 2017, for single individuals and married persons filing separate returns:" running from "5.8% of the Maine taxable income" for the first band to "7.15% of the excess" for the last, with "6.75%" between. This page doesn't repeat the dollar bands; get the tables for your tax year from Maine Revenue Services.
Worked example, with sample figures: a Maine invoice for $900.00 of taxable goods at the "5.5%" rate in §1811 (Maine, page data extracted October 5, 2026) shows a sales tax line of $49.50 (900.00 × 0.055) and comes to $949.50. Prepared food would use the separate rate quoted above.
Tax overview
Each row lists a tax area and its notes. Confirm current figures with your state's tax agency or the IRS.
| Tax type | Rate or basis | Notes |
|---|---|---|
| Sales tax (general rate) | "5.5%" | 36 M.R.S. §1811 (Maine, page data extracted October 5, 2026): "For sales occurring on or after October 1, 2019, the rate of tax is 5.5% on the value of all tangible personal property and taxable services, except the rate of tax is:" |
| Sales tax (prepared food) | "Eight percent" | 36 M.R.S. §1811 (Maine, page data extracted October 5, 2026): "Eight percent on the value of prepared food". |
| Individual income tax | "5.8%", "6.75%", "7.15%" | 36 M.R.S. §5111 (Maine, page data extracted October 5, 2026), for tax years from 2017: "For tax years beginning on or after January 1, 2017, for single individuals and married persons filing separate returns:" Dollar bands aren't repeated here. |
| Income tax surcharge (from 2026) | "2%" | 36 M.R.S. §5111 (Maine, page data extracted October 5, 2026): "For tax years beginning on or after January 1, 2026, the tax calculated under subsections 1-F, 2-F and 3-F is increased by an income tax surcharge at the rate of 2% on that portion of the taxpayer's Maine taxable income in excess of:" "For single individuals, $1,000,000;" |
| Federal self-employment tax | "15.3%" | The IRS self-employment tax page (In the US (federal), last reviewed or updated October 30, 2026): "The self-employment tax rate is 15.3%. The rate consists of two parts: 12.4% for social security (old-age, survivors, and disability insurance) and 2.9% for Medicare (hospital insurance)." |
Filing requirements
This list isn't a complete checklist for your business.
Maine returns and due dates
This page names no Maine forms or due dates. Ask Maine Revenue Services or a tax professional.
The 2026 income tax surcharge
36 M.R.S. §5111 (Maine, page data extracted October 5, 2026) says "For tax years beginning on or after January 1, 2026, the tax calculated under subsections 1-F, 2-F and 3-F is increased by an income tax surcharge at the rate of 2% on that portion of the taxpayer's Maine taxable income in excess of:" It lists "For single individuals, $1,000,000;" and "For individuals filing married joint returns or surviving spouses, $1,500,000."
Registering when you sell into Maine
36 M.R.S. §1754-B (Maine, page data extracted October 5, 2026) says the persons it lists, "other than casual sellers, shall register with the assessor and collect and remit taxes". The list includes "Every person that makes sales of tangible personal property or taxable services in this State if the person's gross sales from delivery of tangible personal property or taxable services into this State in the previous calendar year or current calendar year exceeds $100,000".
Exemptions and resale certificates
36 M.R.S. §1760 (Maine, page data extracted October 5, 2026) begins "Subject to the provisions of section 1760‑C, no tax on sales or use may be collected upon or in connection with:" and goes on to number each exemption. For resale certificates, §1754-B (same date) says "If a vendor has a true copy of a retailer's resale certificate on file, that retailer need not present the certificate for each subsequent transaction with that vendor during the period for which it is valid."
Federal estimated tax
The IRS estimated taxes page (In the US (federal), last reviewed or updated September 25, 2026) says "Individuals, including sole proprietors, partners, and S corporation shareholders, generally have to make estimated tax payments if they expect to owe tax of $1,000 or more when their return is filed."
Deductions and write-offs
Confirm with your state how it treats each item.
- Self-employment tax: according to the IRS (In the US (federal), last reviewed or updated October 30, 2026), "You can deduct the employer-equivalent portion of your self-employment tax in figuring your adjusted gross income."
- Records: the IRS recordkeeping page (In the US (federal), last reviewed or updated May 1, 2026) says "You may choose any recordkeeping system suited to your business that clearly shows your income and expenses."
Practical tips
- Separate prepared food on your invoices. §1811 taxes it at its own rate, quoted above.
- Get this year's dollar bands from Maine Revenue Services before you estimate your Maine income tax.
- Put the state rate into your invoice settings. Billed's invoice software page says "Save your tax rates and settings once, and Billed calculates taxes automatically when you create invoices and estimates."
- File each receipt with its expense. Billed's expense tracking page says "Attach the receipt when you record the expense, and it stays with that entry in your Billed account instead of in a drawer or an inbox."
Frequently asked questions
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At a glance
| Topic | What the Maine statutes or the IRS say |
|---|---|
| Sales tax | "the rate of tax is 5.5%" (36 M.R.S. §1811, Maine, page data extracted October 5, 2026) |
| Prepared food | "Eight percent on the value of prepared food" (36 M.R.S. §1811, Maine, page data extracted October 5, 2026) |
| Income tax rates | "5.8%", "6.75%", "7.15%" (36 M.R.S. §5111, Maine, page data extracted October 5, 2026) |
| 2026 surcharge | "at the rate of 2%" (36 M.R.S. §5111, Maine, page data extracted October 5, 2026) |
| Self-employment tax | "The self-employment tax rate is 15.3%." (IRS, In the US (federal), last reviewed or updated October 30, 2026) |
When this isn't for you
Meant for Maine sole proprietors and small firms that want the statute text next to the federal points. Dollar bands, lodging and rental rates, payroll and audits are left out; ask Maine Revenue Services or a tax professional.