Maine consumers will soon see a new line on their monthly Netflix and Hulu bills. Starting Jan. 1, digital streaming services will be included in the state’s 5.5% sales tax.

The new charge — billed by the state as a way to level the playing field around how cable and satellite services and streaming services are taxed — is among a handful of tax changes coming in the new year.

The sales tax on adult-use cannabis will increase from 10% to 14%, also on Jan. 1. Taxes on cigarettes will increase $1.50 per pack — from $2 to $3.50 — on Jan. 5.

All three changes are part of the $320 million budget package lawmakers approved in June as an addition to the baseline $11.3 billion two-year budget passed in March.

Here are a few things to know about the streaming tax:

1. Why is this new tax taking effect?

Taxes on streaming services have been a long time coming in Maine. Former Republican Gov. Paul LePage proposed the idea in 2017, and it was pitched by Gov. Janet Mills, a Democrat, in 2020 and 2024. The idea was rejected all three times — until this year.

State officials said last spring the change creates fairness in the sales tax as streaming services become more popular and ubiquitous. It’s also expected to generate new revenue for the state.

2. What services are impacted?

Currently, music and movies that are purchased and downloaded from a website are subject to sales tax, but that same music and those same movies are not taxed when streamed online.

The new changes add sales tax to monthly subscriptions for movie, television and audio streaming services, including Netflix, Hulu, Disney Plus, Spotify and Pandora. Podcasts and ringtones or other sound recordings are also included.

3. How much is it likely to cost you?

The new tax would add less than $1 to a standard Netflix subscription without ads priced at $17.99 per month. An $89.99 Hulu live television subscription would increase by about $5 per month.

Beginning Jan. 1, providers will be required to state the amount of sales tax on customers’ receipts or state that their price includes Maine sales tax.

4. How much new revenue is this generating for the state?

The digital streaming tax is expected to bring in $5 million in new revenue in fiscal year 2026, which ends June 30. After that, it’s projected to bring in $12.5 million annually, with that figure expected to increase to $14.3 million by 2029.

The tax increase on cigarettes, which also includes an equivalent hike on other tobacco products, is expected to boost state revenues by about $75 million in the first year.

The cannabis sales tax increase, meanwhile, will be offset in part by a reduction in cannabis excise taxes, which are paid by cultivation facilities on transfers to manufacturers or retailers. The net increase in state revenue will be about $3.9 million in the first full year, the state projects.