Maine state tax: Overview
Maine's state income tax rates start at 5.8%, which is relatively high compared to other states. However, Maine has no local sales taxes.
Maine does have an estate tax, but estates valued at less than $6.41 million are exempt.
[Data for this state tax guide was gathered from several sources including the U.S. Census Bureau, the state’s government website, the Sales Tax Handbook, and the Tax Foundation. Property taxes are cited as a rate percentage rather than the assessed value.]
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Maine income tax
Maine has a graduate state individual income tax rate that ranges from 5.80% to 7.15%, according to the Tax Foundation.
Maine Tax on Retirement Benefits: Maine does not tax Social Security or Railroad Retirement benefits. Military benefits are also tax-exempt. Retirees who receive MainePERS benefits may qualify for a pension exclusion of up to $45,864.
Maine sales tax
The statewide sales tax in Maine is 5.50%, and there are no additional local sales taxes, according to the Tax Foundation.
- Grocery: Exempt
- Prescription drugs: Exempt
- Clothing: Taxable
How much are property taxes in Maine?
In Maine, the effective tax rate is 0.96%, which is about average compared to other states.
Source: Tax Foundation
Maine Property Tax Breaks for Retirees
Property Tax Stabilization Program: Eligible homeowners may have their property taxes frozen, preventing tax increases. Homeowners may transfer the property tax freeze if they move (as long as they qualify). Maine residents must apply for property tax stabilization program.
Homestead Exemption: Maine offers a homestead exemption of up to $25,000 to eligible homeowners. To qualify, homeowners must have owned a home in Maine for at least 12 months.
(Note: Homeowners may need to meet additional criteria to qualify for property tax breaks. Additional tax breaks may be available.)
Maine gas tax
Gasoline: $0.30 per gallon.
Diesel: $0.31 per gallon.
Source: Sales Tax Handbook
Maine taxes on alcohol and tobacco
Maine tobacco taxes
| Product | Tax Amount |
|---|---|
| Cigarettes | $2.00 per pack |
| Chewing Tobacco/Snuff | $2.02 per ounce |
| Smoking Tobacco/Cigars | 20% of wholesale price |
Source: Sales Tax Handbook
Maine alcohol taxes
| Product | Tax Amount |
|---|---|
| Wine | $0.60 per gallon |
| Beer | $0.35 per gallon |
| Liquor | state-controlled |
Source: Sales Tax Handbook
Maine estate and inheritance taxes
Maine has an estate tax with an exemption of $6.8 million for 2024. Tax rates range from 8% to 12%. Gifts given up to one year before the decedent’s death are considered part of the estate.
More From Kiplinger
-
Retire in Costa Rica With These Three Tax BenefitsRetirement Taxes Costa Rica may be a good place for retirement if you like the low cost of living and savings for your heirs.
-
Five Ways to Ease Caregiver StressCaregiver stress is real. Here are five techniques to protect your health and happiness while caring for a loved one.
-
Retire in Costa Rica With These Three Tax Benefits
Retirement Taxes Costa Rica may be a good place for retirement if you like the low cost of living and savings for your heirs.
-
Ten IRS Audit Red Flags for Self-Employed IndividualsIRS Audits Taxpayers who file Schedule C with their Form 1040 have a greater chance of an IRS audit
-
Trump Wants You Out of the IRS, But You'll Have to Wait Until MayIRS Some IRS employees won’t be able to resign using the buyout offer until the end of tax season.
-
Are Tips Taxable in 2025? Understanding the IRS RulesTaxable Income With all the recent talk about ending federal taxes on tips, some wonder whether tips are taxable income.
-
What's Going on With New Jersey Property Tax Programs?Property Tax ANCHOR and ‘Senior Freeze’ just got a refresh, and there’s a new program: Stay NJ. Learn how to save on New Jersey property taxes.
-
States That Won't Tax Your Retirement Income in 2025Retirement Taxes Several states don’t tax Social Security benefits, 401(k)s, IRAs, and pensions. But you may still have to pay state taxes on some incomes.
-
Navigating 1099s: A Guide to All 22 IRS Tax Forms to KnowTax Filing You should receive your 1099 form by February 15. But what happens next?
-
Five States With the Largest EITC ChecksEITC Households in these states received a larger Earned Income Tax Credit (EITC) last year.
