Maine Tax Changes Begin January: What Gets More Expensive in Maine This January?

Maine Tax Changes in January 2026: Maine residents will start seeing higher prices from January as the state rolls out new tax rules. These changes touch daily things like cigarettes, cannabis, and even streaming apps such as Netflix and Spotify. The state says these updates will help raise money and also support public health goals.

From January 1, adult-use cannabis sales will face a 14% tax, which is higher than the earlier 10%. Streaming services will also get a new 5.5% sales tax. This means people will pay a little more each month for their favorite shows and music. A Netflix plan that costs $17.99 will go up to about $18.99 per month once the tax applies. The cigarette tax will jump even more, rising by $1.50 per pack starting January 5.

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Governor Janet Mills first suggested these tax changes to help fix a gap in the state budget. Lawmakers agreed to the streaming and cannabis taxes. They went even further with cigarettes and approved a higher increase than the governor first asked for. The state believes these steps will bring steady money without cutting key services.

Cigarettes and Cannabis get Costlier

The price of cigarettes will rise sharply. The tax on a pack of 20 cigarettes will move from $2 to $3.50. Other tobacco items like vapes, chewing tobacco, and nicotine pouches will also cost more because of similar tax hikes. Health officials hope this will push people to smoke less and lower future health problems.

Governor Janet Mills explained her view clearly. “When cigarettes are a leading cause of cancer,” Janet Mills, governor, said. “Heart disease, stroke and when more than one-third of Maine cancer deaths each year are attributable to smoking, our current policy doesn’t make sense.”

Cannabis taxes will also change in two ways. Buyers will pay more at checkout because of the higher sales tax. At the same time, growers will pay less. The state will cut cultivation taxes from $335 to $223 per pound, with similar cuts for plants, trim, and seeds. Maine expects cannabis taxes to bring in about $15.4 million over two years.

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Streaming Taxes

The new streaming tax puts Maine in line with other states that already tax digital services. Cable and satellite TV have paid sales tax for years, so the state says this move makes things more fair. Streaming taxes may show up as a separate line on bills or be included in the total price.

Not everyone feels happy about the changes. Some residents worry about rising costs. “I think it is ridiculous, there’s already been a ton of new fees and the hike in subscription prices already,” said Dean Preston.

Supporters argue the money will help important areas like health care, education, and food support programs. Maine expects all these tax changes together to raise more than $100 million over the next two years.