Does Maine Tax Groceries?
Partially. Maine exempts grocery staples such as bread, milk, and fresh produce. It taxes prepared food at 8% and taxes candy, soft drinks, snacks, and bottled water at the general 5.5% rate. Classification decides the rate, so any seller must map each item correctly. The Maine Revenue Services (MRS) Sales, Use & Service Provider Tax Rates & Due Dates page is the authoritative rate source.
| Item category | Sales tax | Why |
|---|---|---|
| Grocery staples (bread, milk, produce, cereal) | Exempt | Food ordinarily consumed for nourishment, per MRS |
| Candy, soft drinks, snacks, bottled water | 5.5% | Excluded from the staples definition |
| Prepared food and restaurant meals | 8% | Taxed at the separate prepared food rate |
What Is the Maine Sales Tax Rate on Food?
Maine charges 5.5% on taxable food items and 8% on prepared food. The 5.5% general rate covers candy, soft drinks, snacks, and bottled beverages that fail the staple test. Maine has no local or municipal sales tax, so one rate applies statewide. Both rates have been stable since October 1, 2013, per MRS and 36 M.R.S. § 1811.
| Item | Rate | Notes | Source |
|---|---|---|---|
| General sales tax | 5.5% | Stable since 10/1/2013 (rose from 5%) | 36 M.R.S. § 1811 |
| Prepared food | 8% | Stable since 10/1/2013 (rose from 7%) | 36 M.R.S. § 1811 |
| Soft drinks | 5.5% | Excluded from grocery staples | MRS Rates & Due Dates |
| Local or municipal tax | None | One statewide rate | MRS Rates & Due Dates |
What Counts as a Grocery Staple in Maine?
Grocery staples are “food products ordinarily consumed for human nourishment,” defined in 36 M.R.S. § 1752(3-B) and exempted by 36 M.R.S. § 1760(3). The exemption clause is one line: “Sales of grocery staples.” These items are exempt statewide from sales, storage, and use tax.
| Exempt staple examples | Source |
|---|---|
| Milk, unprocessed meat and fish, fresh produce | 36 M.R.S. § 1752(3-B) |
| Bread and bread products, breakfast cereal, dairy | 36 M.R.S. § 1752(3-B) |
| Canned and boxed foods, coffee beans (whole or ground) | 36 M.R.S. § 1752(3-B); MRS IB27 |
| Jam, jelly, honey, maple syrup, condiments, packaged sauces and dressings | 36 M.R.S. § 1752(3-B) |
Which Foods Are Taxable in Maine?
Maine’s staple definition in 36 M.R.S. § 1752(3-B) explicitly excludes several categories. Candy, soft drinks, and snacks that are not prepared food are taxed at the general 5.5% rate, not 8%. Only prepared food, or items sold under the 75% rule, triggers the 8% rate. Bottled water, alcohol, and dietary supplements are also excluded from the exemption.
| Item | Rate | Classification reason | Source |
|---|---|---|---|
| Candy and confections | 5.5% | Excluded from staples | 36 M.R.S. § 1752(3-B) |
| Soft drinks and sweetened beverages | 5.5% | Excluded from staples | 36 M.R.S. § 1752(3-B) |
| Bottled, mineral, and carbonated water, plus ice | 5.5% | Listed as taxable food products | MRS Instructional Bulletin No. 12 |
| Vitamins and dietary supplements (no prescription) | 5.5% | Excluded from staples | 36 M.R.S. § 1752(3-B) |
| Prepared food | 8% | Ready for consumption without further preparation | MRS Instructional Bulletin No. 27 |
Is Prepared Food Taxable in Maine?
Yes, at 8%. MRS Instructional Bulletin No. 27 (IB27) defines prepared food as food the retailer prepares that is ready for consumption without further preparation, taxed at 8% regardless of dine-in or take-out. This covers restaurant, café, take-out, and delivered meals, plus hot items like a made-to-order sandwich or rotisserie chicken.
Brewed coffee served to go is prepared food and taxable at 8%, while coffee beans sold to brew at home stay exempt as grocery staples, per IB27. The earlier version of this page claimed prepared food is taxed at 5.5%; that is wrong. Prepared food and restaurant meals are taxed at 8% under 36 M.R.S. § 1811.
What Is Maine’s 75% Rule for Prepared Food?
If more than 75% of a retail location’s gross receipts come from prepared food, then all food and drink sold there that needs no further preparation is taxed at 8%, per MRS IB27. This includes chips, milk, soda, juice, candy, and ice cream that would normally be 5.5%. The test applies per location, and bulk sales of grocery staples stay excluded.
The rule hits delis, cafés, and convenience stores with heavy hot-food operations, where the grocery-versus-prepared line blurs. A location just under the threshold charges normal rates on snacks and soda; a location just over it charges 8% on those same items, per IB27.
Is Candy Taxable in Maine?
Yes. Candy is excluded from grocery staples under 36 M.R.S. § 1752(3-B) and taxed at the general 5.5% rate, even when sold beside exempt staples. Soft drinks and snacks follow the identical logic at 5.5%. One exception applies: at a location where prepared-food sales exceed 75% of gross receipts, that same candy bar is taxed at 8% under Maine’s 75% rule, per IB27.
Is Bottled Water Taxable in Maine?
Yes, at the general 5.5% rate. 36 M.R.S. § 1752(3-B) excludes water, including bottled, mineral, and carbonated water, and ice, from the grocery staples definition. MRS Instructional Bulletin No. 12 lists these items under taxable food products. So plain water is taxable in Maine, unlike in many states, and rises to 8% only under the 75% rule.
What Sales Tax Do Restaurants Charge in Maine?
Restaurants charge the 8% prepared food rate on meals, per MRS. There is no separate meals tax, and the rate is not 5.5%. A grocery store deli charges the same 8% on its prepared items, but the grocery store still sells exempt staples alongside them. The 75% rule decides whether its snack and soda sales flip from 5.5% to 8%.
How Is Alcohol Taxed in Maine?
Alcohol sold for on-premises consumption in a licensed establishment is taxed at the 8% prepared food rate, per IB27. Off-premises retail alcohol is excluded from grocery staples under 36 M.R.S. § 1752(3-B) and taxable at the general 5.5% rate. So a beer poured at a bar carries 8%, while a six-pack from a store carries 5.5%.
Are SNAP and WIC Purchases Taxed in Maine?
No. Items paid for with SNAP (Supplemental Nutrition Assistance Program) or WIC (Women, Infants, and Children) benefits are exempt from Maine sales tax, even normally taxable items like candy or soda. Federal law bars states from taxing SNAP-purchased items. Sellers should confirm exemption handling against the Maine sales tax exemption rules.
For operators, point-of-sale (POS) systems must handle split tenders and apply the exemption only to the benefit-paid portion. When a customer pays part by SNAP and part by cash, the exemption covers the eligible items paid with benefits, and the cash-paid taxable items are taxed as usual.
Do I Need to Collect Sales Tax on Food in Maine?
Yes, if you have physical presence in Maine, or if you exceed $100,000 in gross Maine sales in the current or previous calendar year. Maine removed the 200-transaction threshold effective January 1, 2022, so stale pages citing it are wrong. Marketplace facilitators must collect for third-party sellers, so marketplace-only food sellers may not need to register directly.
| Nexus type | Trigger | Effective | Source |
|---|---|---|---|
| Physical nexus | Store, warehouse, inventory, or employees in Maine | Ongoing | MRS |
| Economic nexus | More than $100,000 gross Maine sales, current or prior year | Since 1/1/2022 (200-transaction test removed) | MRS; Commenda US nexus guide |
| Marketplace facilitator | Facilitator collects on behalf of third-party sellers | Ongoing | MRS |
Note that exempt grocery sales still count toward the $100,000 economic nexus threshold, so a seller shipping only tax-exempt staples into Maine can still cross the line and owe registration. This mirrors how New York counts exempt SaaS sales toward its own threshold. Adding any taxable product line, such as prepared food, alcohol, candy, or general merchandise, requires registration and per-item rate mapping once nexus is established, even where the exempt grocery sales alone would not.
How Do You Register and File Maine Food Sales Tax?
Register through the Maine Tax Portal, get a sales tax permit, collect at the correct rate per item classification, file at your MRS-assigned frequency, and remit. MRS assigns each seller a monthly, quarterly, semi-annual, or annual schedule. Returns are due no later than the 15th of the month following the reporting period, per the MRS Rates & Due Dates page. See the Maine sales tax rates and filing page for details.
Does Maine Accept Resale and Exemption Certificates?
Yes, with conditions. A resale certificate requires a Maine sales tax account and at least $3,000 in annual gross sales. Maine does not accept out-of-state resale certificates, except the Multistate Tax Commission (MTC) Uniform Sales & Use Tax Certificate, which it accepts in place of a home-state certificate.
How Does Maine’s Food Tax Compare to Neighboring States?
Maine sits in the middle of its region. New Hampshire has no general sales tax but taxes prepared meals under its Meals & Rentals Tax. Vermont and Massachusetts exempt groceries but run their own meals rates, and Massachusetts also exempts candy as food. Each row below links to its full state guide.
| State | Grocery treatment | Prepared food / meals rate | Local rates | Source |
|---|---|---|---|---|
| Maine | Staples exempt; candy and soda taxed at 5.5% | 8% | None | MRS |
| New Hampshire | No general sales tax; groceries untaxed | 8.5% Meals & Rentals Tax | None | New Hampshire Department of Revenue Administration |
| Vermont | Groceries exempt; soft drinks taxed | 9% meals and rooms tax | 1% local option in some towns | Vermont Department of Taxes |
| Massachusetts | Groceries and candy exempt | 6.25% state, plus up to 0.75% local | 0.75% local meals option | Massachusetts Department of Revenue |
How Commenda Helps With Maine Food Sales Tax
Commenda’s indirect tax platform gives food sellers certainty on Maine compliance. It tracks physical and economic nexus across every state, applies the correct rate by product classification (the 5.5% staple exclusions versus the 8% prepared food rate), and handles registration and filing. Each SKU maps to a product tax code, so Maine’s staple exemption and 75% rule apply automatically instead of by manual research.
Use the US economic nexus guide to check your exposure and thresholds, and the sales tax calculator to look up rates. Book a demo to get a free nexus exposure assessment for your food sales into Maine.
