- Statewide: 5.5%
- Counties cannot levy an additional sales tax.
- Common Exceptions at State Level:
- Prescription Medicine: Exempt
- Unprepared Foods: Grocery staples are exempt, but supplemental items like candy or chips are taxed.
- Prepared Foods: 8%
- Gasoline Tax: 48.41 cents/gallon (Includes all state, local, and federal taxes)
- Diesel Fuel Tax: 55.61 cents/gallon (Includes all state, local, and federal taxes)
Personal Income Tax
Income Tax Comments: *Exemptions of up to $25,000 of retirement income are available; must be reduced by Social Security benefits first. State allows county- and city-level income tax.
- Personal Income Tax Rate Range: 5.8% ($0-$23,000)/6.75% ($23,001-$54,450)/7.15% ($54,451 and over)
- Standard deduction: Single Filing Status: $12,950. Married Filing Jointly: $25,900
- Personal Exemption Allowance: $4,450 (dependents structured as $300 tax credit). Subject to phase-out.
- Itemized Deductions Allowed?: Yes, subject to limitations
- Retirement Income
- Social Security: Exempt
- IRAs: Taxable at ordinary income tax rates*
- 401Ks/Defined contribution employer retirement plans: Taxable at ordinary income tax rates*
- Private pensions: Taxable at ordinary income tax rates*
- Public Pensions: Taxable at ordinary income tax rates*
- Military Pay
- Active Duty Pay: Taxable to the extent included in federal Adjusted Gross Income
- Military Retirement Pay: Exempt
- Military Disability Pay: Exempt
- VA Disability Dependency & Indemnity Compensation Benefits: Exempt
- SBP/SSBP/RCSBP/RSFPP: Exempt
- Local municipalities average 1.36% of the property's assessed value.
- Calculation of assessed value: 100% of fair market value
- Relief programs for:
- Owner-occupied: $20,000 of assessed value may be excluded.
- Property Tax Fairness Credit: Credit of up to $1,000 ($1,500 if 65 and over) if income is less than $42,000 single ($68,000 married filing jointly).
- 65 and over: May receive tax credit of $1,500.
- Disabled Veterans/Over 62 Veterans/Surviving Spouse (not remarried): $6,000 of assessed value may be exempt.
- Paraplegic Veteran: $50,000 of assessed value may be exempt if in specially adapted housing.
- Over 60: Volunteers may be eligible for a $750 credit.
- Deferrals and freeze programs available.
- Personal Property Tax: Yes. Rates and exemptions vary.
Inheritance & Estate Taxes: Estates over $6.01 million may be taxed between 8% to 12%.
Department of Revenue website: www.maine.gov/revenue