Last checked Nov 10, 2026
Buying a car in Maine
The tax you will pay, whether your trade-in lowers it, what the dealer may charge for paperwork, and where to title and register. Taken from official Maine sources.
- State tax on vehicles
- 5.5%
- Trade-in lowers tax
- Yes
- Doc fee limit
- No cap
- Deadline to title or register
- Check with the state
Sales tax on a car in Maine
Maine charges a state sales tax of 5.5% on vehicle purchases.
Separately from the 5.5% sales tax, a municipal excise tax must be paid at the town office before a vehicle can be registered.
On a private sale or a purchase from an out-of-state dealer, the buyer pays the 5.5% tax when registering the vehicle.
Does a trade-in lower the tax?
When a motor vehicle is traded toward another motor vehicle, tax is charged only on the difference between the sale price and the trade-in allowance. No trade-in credit is allowed on a leased vehicle unless the lease is in lieu of purchase.
Example, state tax only. On a $30,000 car with a $10,000 trade-in, the taxable amount is $20,000, so the state tax is about $1,100. Without the trade-in it would be $1,650. Local taxes and fees are extra.
Dealer doc fees in Maine
Maine law does not set a maximum; it requires a dealer to post on the vehicle any document preparation fee that will be added to the sale price. Failing to post it is prima facie evidence of an unfair trade practice.
The documentation fee is taxed along with the vehicle.
Whatever the rule, the fee is part of your out-the-door price. Ask for it in the written quote and negotiate the total, not the line. See dealer fees explained.
Title and registration
Titles and registrations are handled by the Maine Bureau of Motor Vehicles and municipal offices. Registration starts at the town office, where the excise tax is paid. If the town does not issue registrations, it is completed at a BMV branch.
Also worth knowing
- A title application is required for vehicle models 25 years old and newer, with a $33 title application fee.
- For a new vehicle, the town tax collector requires the manufacturer's suggested retail price sticker to calculate the excise tax.
Sources
- Maine Revenue Services: Instructional Bulletin No. 24, Vehicle Dealers (maine.gov)
- Maine Revenue Services: Sales, Use and Service Provider Tax Rates and Due Dates (maine.gov)
- Maine Revised Statutes Title 29-A, Chapter 9: Dealers (section 953-A, Document fees) (legislature.maine.gov)
- Maine Bureau of Motor Vehicles: Register a Passenger Vehicle (maine.gov)
Last checked Nov 10, 2026; next review by Feb 10, 2027. This page explains how the rules generally work and is not tax or legal advice. Rules change, so confirm with the state. Report an error.
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