Is shipping taxable in Maine?
by January 21, 2024
Please note: This blog was originally published in 2019. It’s since been updated for accuracy and comprehensiveness.
Have you ever had issues figuring out sales tax? It can be tricky for all of us, particularly when every state sets their own laws about when and how it is applied. One area that can be hard to figure out is whether sales tax needs to be charged on shipping and handling. Let’s see how it is handled in the state of Maine.
Is shipping taxable in Maine?
Long story short, Maine lays it for us pretty explicitly. In order to not pay sales tax on shipping and handling, a seller must do these three things:
- Ship the item directly to the buyer.
- Separate the charges for shipping from other charges, including handling on the bill. If there is a shipping AND handling charge, then the cost of transportation is not considered separate.
- Shipment must be made by a common or contract carrier or US Mail.
Handling Maine shipping and handling sales tax with TaxJar
The TaxJar app defaults to the most common Maine scenario – that shipping and handling is non-taxable. However, if your business does charge sales tax on shipping, then TaxJar’s Shipping & Handling Override allows you to update that in your state tax settings. This will make the Maine Expected Sales Tax Due Report more accurate. This will also tell the TaxJar API to charge sales tax on Maine shipping.
Learn more about how TaxJar treats shipping and handling here. And to learn more about TaxJar and get started, visit TaxJar.com/how-it-works.
Takeaways
You most likely will not pay sales tax on shipping in Maine. It is pretty clear cut that in order to not pay sales tax, a seller just has to follow these rules:
- Ship directly to your customer using a common carrier or USPS.
- Separate the charges on the bill. If you have a shipping AND handling charge, separate them out so that shipping or transportation is its own charge.
Ready to automate sales tax? Sign up for a free trial of TaxJar today
Please note: This blog is for informational purposes only. Be advised that sales tax rules and laws are subject to change at any time. For specific sales tax advice regarding your business, contact a tax advisor.
