Maine’s new budget law will impose a 5.5% sales tax on streaming platforms and digital services starting 1 January 2026.
Maine Governor Janet Mills signed a new budget law (LD 210) on 23 June 2025, which expands the state’s sales tax to include streaming platforms and digital services.
Starting 1 January 2026, services like Netflix, Spotify, and Hulu will face a 5.5% sales tax, broadening the state’s taxation of digital content. This expansion extends Maine’s taxation scope on digital content, encompassing more than just the services previously addressed under existing legislation.
LD 210 defines “digital audiovisual and digital audio services” as the electronic transfer of digital audiovisual and audio works to users with limited usage rights. The seller grants these rights and often depends on ongoing payments or subscriptions from the buyer.
LD 210 law also repeals the Service Provider Tax, moving previously taxed services like cable, satellite TV, and radio into the general sales tax base at the same rate.
Additionally, the cigarette tax will rise from USD 2 to USD 3.50 per pack, and the tax rate per cigarette will increase from USD 0.10 to USD 0.175, effective 5 January 2026.
These changes are part of a USD 320 million supplemental budget, complementing Maine’s USD 11.3 billion budget, which was enacted earlier on 21 March 2025.
