How Auto Loans Work in Maine
Maine charges 5.5% sales tax on vehicles with no local add-ons, applied to the price after your trade-in allowance. The single statewide rate keeps the math clean: negotiate the price and the trade, and the tax follows.
Maine's annual excise tax, collected at registration, is based on the car's original MSRP and age. It is steepest in the first years and declines over time, which makes a new $35,000 car meaningfully more expensive to keep registered than a used one.
A Worked Example: Buying a $35,000 Car in Portland
In Portland, the 5.5% rate adds $1,925 to a $35,000 car with no trade-in. Add about $80 for title and registration, finance $37,005 at 7% APR for 60 months, and the payment lands near $733 a month.
| Item | Amount |
| Vehicle price | $35,000.00 |
| Maine state tax (5.5%) | $1,925.00 |
| Title and registration (est.) | $80.00 |
| Amount financed | $37,005.00 |
| Monthly payment (60 mo, 7% APR) | ~$733.00 |
Maine EV shoppers should run the rebate math before the loan math. Efficiency Maine offers up to $8,000 for low-income buyers of new EVs and $6,000 for moderate-income buyers, which can erase a big chunk of the financed amount.
Registration, Title, and Other Fees in Maine
Maine's title fee is $33 and annual registration is about $35 for a passenger car, plus the excise tax based on MSRP and age. Town offices handle registration in most of Maine.
Maine Lemon Law: The Short Version
Maine's lemon law is among the strongest anywhere, covering new vehicles for 3 years or 36,000 miles. The state also runs an arbitration program, giving buyers a practical path to a refund or replacement without a lawsuit.
Electric and Hybrid Incentives in Maine
Efficiency Maine's EV rebates reach $8,000 for low-income buyers of new EVs ($4,000 used) and $6,000 for moderate-income buyers ($3,000 used), with a temporary $1,000 bonus through September 30, 2026. Maine charges no extra annual EV registration surcharge.
Frequently Asked Questions
What is Maine sales tax on a car?
5.5% on the net price after trade-in, with no local add-ons.
What is the excise tax?
An annual registration tax based on the car's MSRP and age, highest in the early years.
How much is the Maine EV rebate?
Up to $8,000 new for low-income buyers and $6,000 for moderate-income buyers, plus a $1,000 bonus through September 2026.
How long is Maine's lemon law?
3 years or 36,000 miles, one of the strongest in the country.
How much is registration?
About $35 a year plus a $33 title fee, handled by town offices.
Related Calculators
Start with the main Car Loan Calculator for the national baseline, then compare neighboring markets on the Massachusetts, Connecticut, Maryland car loan pages. For the full local tax picture, use the Maine Sales Tax Calculator, and sanity-check the payment against take-home pay with the Fuel Cost Calculator.
Sources: Maine Bureau of Motor Vehicles, Maine Revenue Services, Efficiency Maine. Figures reviewed for 2026. This calculator provides an estimate for planning purposes and is not financial advice. Confirm tax rates and fees with the state agency before you buy.