Streaming costs go up: New law triggers price hikes for Netflix, Spotify - check details

Streaming subscribers in one U.S. state are about to notice a quiet but meaningful change on their monthly bills. As the new year begins, a fresh tax is reshaping how digital subscriptions are charged. Popular services like Netflix, Hulu, and Spotify are all affected. For Maine residents, the increase will show up directly on their receipts.

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Why are streaming prices increasing?

Maine residents are seeing higher subscription costs after the state implemented a new 5.5% sales tax on streaming services. According to Maine Morning Star, the tax applies to digital video and audio platforms, bringing services like Netflix, Hulu, and Spotify into the state’s sales tax system for the first time.


The change reflects how viewing habits have shifted over the years. As more people drop traditional cable in favor of streaming, states are seeking new ways to recover lost tax revenue, as per a report by The US Sun.

Governor Janet Mills said the move helps correct uneven taxation, noting that Maine already taxes satellite and cable television, along with online purchases of music and movies. The new tax is also expected to help offset part of the state’s budget deficit.


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How will the tax show up on your bill?

Streaming providers are required to clearly show the sales tax on customer receipts or note that the total price includes Maine’s tax. For many subscribers, the increase will be small but noticeable.

For example, a standard Netflix subscription priced at $17.99 per month will now cost roughly $18.99 once the 5.5% sales tax is applied. Similar increases will appear across other streaming platforms billed to Maine addresses, as per a report by The US Sun.

State officials estimate the tax will generate about $17.5 million over the next two years.

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Which other states are doing the same?

Maine is not alone in taxing digital subscriptions. Dozens of states with general sales taxes already include streaming services within their tax structures.

Richard Auxier, senior policy associate at the Tax Policy Center, told Stateline in 2022 that adding streaming services to sales tax policies “totally follows the logic of taxation.” He added, “Trying to make up for the money states lost from people not going to Best Buy and buying DVDs is good tax practice."

States such as Texas, New Jersey, Ohio, and Colorado already tax streaming services, while others tax certain digital goods like software, e-books, or subscriptions. Florida, for instance, applies a communications services tax to video and music streaming on top of its state sales tax, as per a report by The US Sun.

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Some cities have gone further. Chicago treats streaming platforms as electronically delivered amusement, placing them under entertainment tax rules similar to concerts and sporting events, as per a report by The US Sun.

For Maine residents, the message is simple: check your receipts. That extra dollar on your streaming bill is now part of the state’s new approach to taxing the digital age.

FAQs

Which services are affected by Maine’s new tax?
Streaming platforms like Netflix, Hulu, and Spotify are included.

When did the new subscription tax start?
The tax took effect on January 1, 2026.