As Maine rings in the new year, many laws passed by the Legislature are set to go into effect.
January brings new taxes, wage increases and more to Mainers, affecting their pocketbooks and prices in 2026.
New taxes and fees
Last summer, legislative Democrats passed a law increasing the state tax on cigarettes for the first time in 20 years, tacking on an additional $1.50 per pack, bringing the total tax to $3.50.
The tax will bring Maine in line with other New England states such as Massachusetts and Vermont, though the rate will now be much higher than New Hampshire’s, where each pack is hit with a $1.78 tax. Maine’s new rate remains much lower than Rhode Island’s and Connecticut’s taxes. Both of those states charge more than $4 in tax on each pack of cigarettes.
Through 2027, that tax is expected to bring $111 million in revenue to the state.
Maine will also begin charging sales tax on subscriptions to streaming services like Netflix and Spotify starting Jan. 1. With some bipartisan support, the state’s 5.5 percent sales tax will begin applying to the services, while taxes on cable services will be reduced from 6 percent to 5.5 percent.
That tax is expected to generate over $10 million per year once implemented.
Other tax increases passed as part of the state’s budget include a $7 hike on fishing licenses and an increase in the tax rate on cannabis products from 10 percent to 14 percent.
Minimum wage increase
Maine’s minimum wage changes annually, as state law ties it to inflation to prevent high costs from driving down the value of wages. In 2026, the wage will rise from $14.65 to $15.10. Maine’s minimum wage has increased dramatically over the past decade, doubling since 2016, when it was set at $7.50.
The 2026 wage bump is expected to increase pay rates for about 100,000 workers, including 42,000 who will directly earn more as a result of the change, according to the liberal Maine Center for Economic Policy.
That will make Maine’s minimum wage among the highest in the country. It’s slightly higher than in Massachusetts, where the wage is $15, and significantly higher than in New Hampshire, which uses the federal minimum wage of $7.25. The federal wage was last updated in 2009.
Some Mainers will see their wage bumped even further; Portland is raising its minimum wage to $16.75 for hourly employees, part of a plan to reach an $19 hourly wage by 2028.
Easier subscription cancellations
For Mainers who subscribe to services or memberships after Jan. 1, cancelling will be easier. A new law will require companies that offer online sign-ups to allow customers to cancel their services online as well. The policy was aimed at gyms and other businesses with in-person cancellation policies.
More decisions for Janet Mills
The Democratic governor and candidate for U.S. Senate has decisions to make on more than 60 bills that she held after they were passed by the Legislature in 2025. She has already said she will allow one of the most controversial bills, which limits police cooperation with immigration officials, to become law. She’s also allowing a bill requiring serial numbers on homemade firearms to go into effect.
But many decisions remain, including one that would allow tribes control over a new online gaming market. The state’s Gambling Control Board wrote a letter to Gov. Mills last month urging her to veto it, citing concern over gambling addictions and negative effects on casinos.
Mills will have three days after the Legislature convenes on Jan. 7 to veto any remaining bills or allow them to become law.
