Maine

Sales Tax

  • Statewide: 5.5%
  • Counties cannot levy an additional sales tax.
  • Common Exceptions at State Level:
    • Prescription Medicine: Exempt
    • Unprepared Foods: Exempt
    • 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

  • Personal Income Tax Rate Range: 5.8% ($0-$24,500)/6.75% ($24,501-$58,050)/7.15% ($58,051). Brackets differ for joint filers. Download state tax forms for more info/table.
  • Standard deduction: Single Filing Status: $13,820. 
  • Personal Exemption Allowance: $4,700 (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
Income Tax Comments: *Exemptions of up to $30,000 of retirement income are available; must be reduced by Social Security benefits first. State allows county- and city-level income tax.

 

Property Tax

  • Local municipalities average 1.28% of the property's assessed value.
  • Calculation of assessed value: 100% of fair market value
  • Relief programs for:
    • Owner-occupied: $25,000 of assessed value may be excluded.
    • Property Tax Fairness Credit: Credit of up to $1,000 ($1,500 if 65 and over) if meet income requirements.
    • 65 and over: May receive tax credit of $1,500.
    • Disabled Veterans (100% disability rating)/Veteran 62 or Over/Surviving Spouse: $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 $6.41 million (for decedents dying in 2023) may be taxed between 8% to 12%.

 

Department of Revenue website: www.maine.gov/revenue

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