Skip First Level Navigation | Skip All Navigation

Home > FAQs > Insurance Taxes > FAQ Detail

4. Is it permissible for insurance companies to charge their clients for the tax on premiums?

Yes. Maine’s insurance premiums tax is a tax on the insurer in lieu of paying income taxes. Like any cost of doing business, the insurer may pass this cost on to its customers and may also separately state the amount of those taxes. However, the insurer may not make a representation that the premiums tax is imposed on the insured or that the insured is in any way legally responsible to the State of Maine for the tax liability.

Rev. 1/16/13