Buying a vehicle in Maine comes with more than just the cost of the car—it includes a 5.5% sales tax, one of the highest flat rates in the Northeast. While there are no additional local sales taxes, Maine’s registration fees and limited exemptions can still make vehicle ownership costly, especially for higher-end or custom vehicles.
In this article, we’ll break down how Maine calculates vehicle tax, how it compares to other states, and how you can keep more money in your pocket through smart registration strategies.
Maine Vehicle Sales Tax Overview
Maine applies a 5.5% sales tax on the purchase price of motor vehicles (Maine Revenue Services – Sales Tax Information). This applies to both new and used vehicles, whether purchased from a dealer or private party.
Key points:
- The 5.5% rate applies to retail sales of vehicles
- Private sales are not exempt from tax and must be reported at time of title transfer
- No additional county or local sales tax applies to vehicle purchases in Maine
- Tax is collected by the Bureau of Motor Vehicles (BMV) during registration
Additionally, Maine does not allow deductions for trade-in value unless the purchase is through a dealer and clearly itemized.
Example: Maine Vehicle Sales Tax Costs
Here’s how much you might expect to pay in taxes when registering a vehicle in Maine, depending on its value:
| Purchase Price | Sales Tax Rate | Estimated Tax Owed | Total Cost with Tax |
|---|---|---|---|
| $25,000 | 5.5% | $1,375 | $26,375 |
| $45,000 | 5.5% | $2,475 | $47,475 |
| $70,000 | 5.5% | $3,850 | $73,850 |
| $100,000 | 5.5% | $5,500 | $105,500 |
How Maine Compares to Other States
While Maine’s tax rate seems modest compared to states with high local add-ons, the total cost can still add up fast on high-value vehicles. Here’s how it compares:
- Louisiana (Shreveport): 10.2% total – $75,000 = $7,650 tax (Louisiana Department of Revenue – Motor Vehicle Tax Info)
- California (Los Angeles): 9.5% – $75,000 = $7,125 tax (California Department of Tax and Fee Administration – Tax Rates)
- Florida (Miami-Dade): 7% total, capped at first $5,000 – ~$700 max tax (Florida Department of Revenue)
- Montana: 0% – No vehicle sales tax (Montana Department of Justice – Vehicle Registration)
Many buyers legally register their vehicles in tax-free states like Montana to save $3,000–$7,000 or more, especially for exotic, collector, or RV purchases.
Vehicle Tax Exemptions in Maine
Maine offers limited exemptions from vehicle sales tax:
- Transfers between spouses are exempt
- Gifts to qualifying family members (parent, child, sibling) may be exempt
- Inherited vehicles are typically exempt from sales tax
- Nonprofits and government agencies may also qualify
All exemptions must be backed with appropriate documentation, including affidavits, wills, or official gift forms (Maine BMV – Title & Registration Forms).
10 Ways to Reallocate Your Tax Savings
If you’re able to save thousands on Maine sales tax by registering strategically, here are smarter ways to spend it:
- Upgrade to a more luxurious trim or performance model
- Add premium wheels, tires, or suspension kits
- Apply ceramic coating or paint protection
- Install leather seats, sunroof, or climate upgrades
- Buy extended warranty coverage
- Outfit your vehicle for adventure: racks, tents, hitches
- Purchase trailer gear or utility equipment
- Boost safety with dash cams or alarm systems
- Put the savings toward your next down payment
Take a road trip across New England and beyond
Why Use Ride Legal
At Ride Legal, we help vehicle buyers reduce or eliminate sales tax legally by registering in tax-friendly jurisdictions. For Maine residents, this can mean saving thousands while staying fully compliant with the law.
We handle:
- Montana LLC formation
- Vehicle titling and registration
- Documentation for family transfers, gifts, or exemptions
- Support for RVs, classic vehicles, exotics, and imports
Whether you’re in Portland, Bangor, or a small town on the coast, our experts streamline the entire registration process.
Frequently Asked Questions About Maine Vehicle Sales Tax
Q: What is Maine’s vehicle sales tax rate?
A: Maine charges a flat 5.5% sales tax on most motor vehicle purchases (Maine Revenue Services – Sales Tax Overview).
Q: Are there local taxes added in Maine?
A: No. Maine does not charge local or county-level vehicle taxes.
Q: Do I pay tax on a private party sale?
A: Yes. Private transactions are fully taxable and collected at registration.
Q: Can I deduct trade-in value?
A: Only if the transaction occurs through a dealer and the trade-in is itemized.
Q: Are there legal ways to avoid vehicle tax in Maine?
A: Yes—transfers between spouses or qualifying relatives, inheritances, and nonprofit exemptions are recognized. Some buyers also legally register vehicles out-of-state through entities like Montana LLCs.
Ready to Register Smarter?
Whether you’re buying a luxury SUV, imported classic, or off-road beast, Maine’s vehicle tax can cost thousands. Ride Legal helps you minimize that cost—legally, efficiently, and with confidence.
Visit www.ridelegal.com to get started.
