AutoTaxCalculatorMaine excise tax: how much is it?
Maine vehicle excise tax = MSRP × the mill rate for the car's age, from 24 mills ($24 per $1,000) in year 1 down to 4 mills from year 6 on. A $30,000 car pays $720 in its first year and $120 a year once it's six or older.
The excise is Maine's yearly tax for the privilege of operating a vehicle on public roads. It's a municipal tax: you pay it to the town or city where you live, and the money funds local roads, schools and services. The state sets the formula, so a car with the same MSRP and age owes the same excise in Portland as in Presque Isle. You must pay it before the BMV will register or renew the vehicle.
Maine excise tax rates by year
| Excise year | Mill rate | Per $1,000 of MSRP | On a $30,000 MSRP |
|---|---|---|---|
| Year 1 | 0.0240 | $24.00 | $720.00 |
| Year 2 | 0.0175 | $17.50 | $525.00 |
| Year 3 | 0.0135 | $13.50 | $405.00 |
| Year 4 | 0.0100 | $10.00 | $300.00 |
| Year 5 | 0.0065 | $6.50 | $195.00 |
| Year 6 and later | 0.0040 | $4.00 | $120.00 |
The rates step down on January 1 each year, so a car moves to the next year's rate at the start of each calendar year. Year 1 is the vehicle's current model year.
How to calculate Maine excise tax
The state of Maine excise tax is set in state law, not by your town, so the Maine excise tax calculation is the same everywhere: MSRP × the mill rate for the car's year. Your town collects it, but it can't change the rate. That's why people call it the Maine state excise tax even though the money goes to the municipality.
- Find the MSRP: the manufacturer's suggested retail price when the vehicle was new, including factory options. Discounts and the price you paid don't matter.
- Find the excise year: year 1 for the current model year, year 2 for last year's model, and so on.
- Multiply the MSRP by that year's mill rate.
Maine Revenue Services' own example
- A three-year-old vehicle with an MSRP of $19,500
- $19,500 × 0.0135 = $263.25
Why excise feels high on a new car: because it's based on the full MSRP rather than market value, a brand-new car pays its highest excise in year 1 even if you negotiated a big discount. The good news is that it falls quickly. By year 4 it's less than half of the year-1 amount.
Maine car sales tax
Maine auto sales tax is the state's 5.5% sales tax, applied to the purchase price with no local add-on. Maine allows a trade-in credit, so you're taxed on the price minus the value of the vehicle you trade. A dealer collects the tax at the sale. On a private sale, you pay it when you register the vehicle in your town.
Example: a $30,000 car with an $8,000 trade-in
- Taxable price: $30,000 − $8,000 = $22,000
- Maine sales tax: $22,000 × 5.5% = $1,210.00
Registering a car in Maine: the order of payments
- Excise tax to your town office, based on the MSRP and age.
- Sales tax if you bought privately or out of state and it wasn't collected by a dealer.
- State registration and title fees, often collected by the same town office acting as a BMV agent, or at a BMV branch.
If you move to Maine, you'll pay excise to your new town when you first register. Maine use tax generally applies only to a vehicle bought shortly before the move (within about the previous 12 months), with credit for sales tax paid to the other state. A car you've owned and used elsewhere for longer is normally not taxed again. Bring proof of where and when you bought it.
Frequently asked questions
What are the Maine excise tax rates?
24, 17.5, 13.5, 10 and 6.5 mills for years 1 to 5, then 4 mills from year 6 on, applied to the MSRP.
Is Maine excise tax the same in every town?
Yes. The state sets the rates and the formula for the Maine auto excise tax. Your town collects it and keeps the revenue.
Do I get a refund of excise tax if I sell my car?
You can usually transfer the excise credit to your next vehicle when you re-register in the same year. Ask your town office how it applies the credit.
Is the excise tax on cars in Maine deductible?
Because it's based on the vehicle's value (MSRP), the excise can qualify as a deductible personal property tax on a federal return if you itemize. Our guide are vehicle registration fees tax deductible? covers every state.
What is the Maine automobile sales tax rate?
5.5% of the price after trade-in, statewide.
Sources
- Maine Revenue Services: Excise tax (mill rate schedule and example)
- City of Bath: Excise tax mill rates
- 36 M.R.S. §1765: Trade-in credit
This calculator gives an estimate. Your town office calculates the final excise. How we calculate