Maine sits on the Atlantic coast in the far northeast of the United States. It borders several Canadian provinces but only one US state, which makes it unique. Just over 1.3 million people live on its 90,000 km². The capital of the Pine Tree State is Augusta.
The finance website WalletHub ranks Maine 13th in the nation as a “place to start a business”. According to U.S. News, Portland is one of the ten most livable metro areas out of 150 studied.
Plenty of reasons to choose Maine
Relatively low costs for industrial and commercial real estate, proximity to almost 20 percent of the US population in the Boston to Washington DC corridor, strong logistics and rich natural resources all make a compelling case for Maine.
Maine welcomes new businesses with open arms. The state actively supports innovation, research and development, and workforce training. Close ties between companies and first-class education and research institutions help turn ideas into reality, backed by incubators, prototype testing and development facilities.
International companies drive the economy
Almost 370 international companies keep the Pine Tree State's economy growing. The state benefits from global investment and more than 30 projects run by foreign companies. Around 37,000 local workers owe their jobs to these international businesses, more than a quarter of them in manufacturing. Between 2013 and 2018, jobs created through FDI grew by more than 15 percent, a clear sign of the growing global interest in Maine as a place to do business.
Intermodal transport for maximum efficiency
Intermodal transport moves goods from origin to destination using two or more modes of transport, for example first by ship and then by truck. Maine offers three active truck-to-rail intermodal facilities in Portland, Searsport and Auburn, plus a number of sites where bulk goods are transferred from railcars to trucks.
With Eimskip, Iceland's largest shipping company, setting up in Portland in 2013 and a federal grant funding improvements by the Maine Port Authority, the Pine Tree State is becoming an international shipping hub.
Good reasons to invest in key industries
Maine's key industries for investment occupy unique competitive niches, giving them a strong edge. They are advanced materials and composites, food and beverage, forest products and life sciences. Here is a brief look at conditions in advanced materials and composites.
Maine is home to leading manufacturers of advanced materials and their secondary markets, as well as smaller specialized companies that excel in extreme applications, infrastructure, marine technologies and transportation.
The state's textile heritage has led to the next generation of advanced materials, from flame-retardant materials to fabrics with fiberglass and wood derivatives. Research institutions, training programs and educational institutions work hand in hand with industry to drive innovation.
Income tax in Maine
Maine levies income tax of 5.8 to 7.15%, depending on income. On top of that, federal income tax applies.
Corporate tax in Maine
Maine levies corporate tax of 3.5 to 8.93%, depending on profit. On top of that, federal corporate tax applies.
Sales tax in Maine
The USA has no VAT on the European model. Instead, states, counties and municipalities levy a local sales tax on the sale of goods (but not services).
Sales tax rate in Maine
Maine's state sales tax is 5.5%. Cities and counties do not levy sales tax.
Maine nexus laws & sales tax
Learn more about economic nexus laws and sales tax.
Effective date
Included transactions:
Gross sales of tangible personal property* and taxable services delivered into the state
Treatment of exempt sales:
Exempt sales are included in the threshold; exempt services are not
Trigger:
Revenue or transaction volume
Sales/transaction threshold:
$100,000 or 200 transactions
Evaluation period:
Threshold applies to sales in the current or previous calendar year
Additional information:
- Registration requirements: Maine may require a remote business to register to collect and remit sales and use tax once it exceeds the economic nexus threshold.
- Maine guidance for remote sellers
- LD1405 SP483
- *Tangible personal property includes electronically transferred property
Maine marketplace sellers & sales tax
Learn more about registration requirements for marketplace sellers
Effective date for marketplace facilitators:
October 1, 2019
Economic nexus threshold:
More than $100,000 in Maine gross sales, or 200 or more separate transactions of tangible personal property, electronically delivered products or taxable services in the current or previous calendar year. When calculating the threshold:
- Remote sellers should exclude sales made through a marketplace facilitator from October 1, 2019
- Marketplace facilitators include all sales made through the marketplace
Registration requirements:
- Remote multichannel sellers: Once you exceed the economic nexus threshold, you must register with Maine Revenue Services (MRS) and collect Maine sales tax on sales not taxed by a marketplace facilitator.
- Remote marketplace sellers: You do not need to register with MRS if you exceed the economic nexus threshold and sell only through one or two marketplace facilitators. Contact MRS for more information.
- In-state multichannel sellers: You must register with MRS and collect tax on sales not taxed by a marketplace facilitator.
- In-state marketplace sellers: You must register. Contact MRS for more information.
Learn more here.
See how Maine stacks up against other locations in our overview of US states, and find everything you need to organize your move across the Atlantic in our US relocation guide.
Our services for Maine:
We support you with company formation, taxes and visas, including when your destination is Maine. It usually starts with a consultation; you will find the routes to your own company under US company formation.