Sales tax on labor in Maine: not taxed on building repairs and new construction; repairs to things and installation depend on the job

Repairing a thing in Maine

It depends. When you repair a thing and list parts and labor separately, tax applies only to the parts. A repair with no parts is not taxed. What it turns on: whether parts and labor are separately stated on the invoice.

• “When repairs are made to tangible personal property and the sale of parts and labor are separately stated, sales tax applies only to the sale of parts. If parts and labor are not separately stated on the invoice, the entire amount charged is subject to tax. When repairs do not include the sale of parts, no tax is charged to or due from the customer.” — Maine Revenue Services Instructional Bulletin No. 53 (Repairs & Warranties), page date: Last revised February 18, 2016
• “Charges for application, installation or repair services (other than installation or repair to telecommunications equipment) are not part of the taxable sales price if separately stated, even when sold as part of a sale of tangible personal property.” — Maine Revenue Services Business Guide to Sales, Use and Service Provider Tax, page date: Revised July 14, 2020

Repairing a home or building in Maine

Not taxed. Maine does not tax real property services such as carpentry.

• “The term "construction contract", as used in this bulletin, means a contract for repair, alteration, improvement, remodeling or construction of real property. ... The contractor, as the last user of the materials as tangible personal property, pays a sales or use tax when purchasing the materials.” — Maine Revenue Services Instructional Bulletin No. 4 (Contractors and Subcontractors), page date: Last revised November 4, 2019
• “There is no tax on the sale of services in general, such as personal services (e.g., haircuts and massages), personal property services (e.g., dry cleaning and pet grooming), and real property services (e.g., carpentry, landscaping, and house cleaning).” — Maine Revenue Services Business Guide to Sales, Use and Service Provider Tax, page date: Revised July 14, 2020

Installation work in Maine

It depends. A separately stated charge for installing or applying something you sold is not taxed; if it is lumped into the item's price, it is taxed with the item. What it turns on: whether the installation charge is separately stated from the price of the item.

• “CHARGES FOR INSTALLING OR APPLYING OR REPAIRING THE PROPERTY SOLD, IF SEPARATELY STATED. These charges, if separately stated, are not part of the taxable "sale price" and are not subject to sales tax.” — Maine Revenue Services Instructional Bulletin No. 39 (Sale Price), page date: Last revised October 4, 2019
• “Charges for application, installation or repair services (other than installation or repair to telecommunications equipment) are not part of the taxable sales price if separately stated, even when sold as part of a sale of tangible personal property.” — Maine Revenue Services Business Guide to Sales, Use and Service Provider Tax, page date: Revised July 14, 2020

New construction in Maine

Not taxed. Maine does not tax construction labor.

• “The term "construction contract", as used in this bulletin, means a contract for repair, alteration, improvement, remodeling or construction of real property. ... The contractor, as the last user of the materials as tangible personal property, pays a sales or use tax when purchasing the materials.” — Maine Revenue Services Instructional Bulletin No. 4 (Contractors and Subcontractors), page date: Last revised November 4, 2019
• “There is no tax on the sale of services in general, such as personal services (e.g., haircuts and massages), personal property services (e.g., dry cleaning and pet grooming), and real property services (e.g., carpentry, landscaping, and house cleaning).” — Maine Revenue Services Business Guide to Sales, Use and Service Provider Tax, page date: Revised July 14, 2020

Listing labor separately on the bill in Maine

Changes the answer. Labor for installing, applying or repairing is untaxed only when it is listed separately from the parts or item.

• “When repairs are made to tangible personal property and the sale of parts and labor are separately stated, sales tax applies only to the sale of parts. If parts and labor are not separately stated on the invoice, the entire amount charged is subject to tax. When repairs do not include the sale of parts, no tax is charged to or due from the customer.” — Maine Revenue Services Instructional Bulletin No. 53 (Repairs & Warranties), page date: Last revised February 18, 2016
• “CHARGES FOR INSTALLING OR APPLYING OR REPAIRING THE PROPERTY SOLD, IF SEPARATELY STATED. These charges, if separately stated, are not part of the taxable "sale price" and are not subject to sales tax.” — Maine Revenue Services Instructional Bulletin No. 39 (Sale Price), page date: Last revised October 4, 2019
• “Charges for application, installation or repair services (other than installation or repair to telecommunications equipment) are not part of the taxable sales price if separately stated, even when sold as part of a sale of tangible personal property.” — Maine Revenue Services Business Guide to Sales, Use and Service Provider Tax, page date: Revised July 14, 2020

Materials on jobs in Maine

Either: by default the contractor is the last user of materials and pays sales/use tax when buying them; a contractor who bills all customers for time, materials and sales tax may register as a retailer, buy materials tax-free for resale and charge tax on the materials.

• “The term "construction contract", as used in this bulletin, means a contract for repair, alteration, improvement, remodeling or construction of real property. ... The contractor, as the last user of the materials as tangible personal property, pays a sales or use tax when purchasing the materials.” — Maine Revenue Services Instructional Bulletin No. 4 (Contractors and Subcontractors), page date: Last revised November 4, 2019
• “the contractor's business practice of invoicing all customers for time, materials, and sales tax, is sufficient evidence to support the intent that title passes to the customer before affixing the materials to real property.” — Maine Revenue Services Instructional Bulletin No. 4 (Contractors and Subcontractors), page date: Last revised November 4, 2019

Trade services Maine taxes

None of the Maine pages used here names a trade service, such as cleaning or lawn care, as taxed on its own.

• “There is no tax on the sale of services in general, such as personal services (e.g., haircuts and massages), personal property services (e.g., dry cleaning and pet grooming), and real property services (e.g., carpentry, landscaping, and house cleaning).” — Maine Revenue Services Business Guide to Sales, Use and Service Provider Tax, page date: Revised July 14, 2020

What was not checked for Maine

• Maine's Instructional Bulletin No. 28, on installing things into buildings, which Bulletin 53 points to for repairs of plumbing and heating fixtures, could not be found. The Business Guide used is the July 2020 revision.

Check with the Maine Revenue Services

Before you bill: check with the Maine Revenue Services. As of November 6, 2026.

This is a plain-words summary of each state's own revenue guidance as of November 6, 2026, not tax advice. Rules have exceptions, and cities and counties can add taxes of their own. Check with the state's tax department, linked on every state's page, before you bill.

Compare Maine with every state's answer, or with its neighbours just below.

Next door to Maine

• New Hampshire: no sales tax (not fully confirmed)

Official sources for Maine

• Maine Revenue Services Instructional Bulletin No. 53 (Repairs & Warranties) — Last revised February 18, 2016
• Maine Revenue Services Instructional Bulletin No. 4 (Contractors and Subcontractors) — Last revised November 4, 2019
• Maine Revenue Services Instructional Bulletin No. 39 (Sale Price) — Last revised October 4, 2019
• Maine Revenue Services Business Guide to Sales, Use and Service Provider Tax — Revised July 14, 2020

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