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1. Where do I pay the Excise Tax?

Excise Tax is paid at the local town office where the owner of the vehicle resides. When a vehicle needs to be registered, an Excise Tax is collected prior to the registration. Please call 207-864-3326 for more information.

2. How much is the Excise Tax?

The amount of tax is determined by 2 things:
Age of the Vehicle
MSRP (Manufactured Suggested Retail Price)
Please call 207-864-3326 for more information.

3. How is the Excise Tax calculated?

Excise Tax is calculated by multiplying the MSRP by the mil rate (the rates drop back on January 1st of each year):
Year 1: 0.0240 mil rate
Year 2: 0.0175 mil rate
Year 3: 0.0135 mil rate
Year 4: 0.0100 mil rate
Year 5: 0.0065 mil rate
Year 6: 0.0040 mil rate

For example, a 3 year old car with an MSRP of $19,500 would pay $263.25. Please call 207-864-3326 for more information.

4. Where does the Excise Tax go?

The town that collects the Excise Tax can use it as revenue towards the annual town budget. Typically, the revenue is spent on local road maintenance, construction, and repair. Please call 207-864-3326 for more information.

5. Why is the tax based on MSRP?

Excise Tax was designed with equity in mind. In 1925, this tax was enacted as a Maine Law. At that time, the legislature decided that the fairest tax assessment would be based on what the manufacturer suggests it sell for.

This law has remained in effect for over 90 years to ensure that everyone who drives the same vehicle pays the same amount of tax. Please call 207-864-3326 for more information.