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
-
Need More Money for Retirement? You May Have Already Saved It.Over 29 million lost 401(k) accounts worth almost $1.65 trillion have been forgotten by their owners. Here are eight ways you can locate your account.
-
Five Ways to Save for Retirement in 2025If you did a poor job saving for retirement last year, don't despair. There are ways to build your nest egg in the new year.
-
California Fires: How to Recover Tax Records and Other Important DocumentsDisaster Recovery Having your tax records and other vital documents is important for claiming casualty loss deductions that can help with recovery.
-
Child and Dependent Care Credit: How Much Is It?CDCTC The non-refundable tax break can help working families afford quality care for their child or qualifying dependent.
-
Gov. Hochul Wants to Triple the New York Child Tax CreditState Tax Millions of New York families could get a larger state child tax credit check over the next two years under a new proposal.
-
U.S. Consumers May Feel Pinch From Panama Canal Tariff HikeTax Policy The Panama Canal tariffs on crossing ships will add to looming price hikes for U.S. consumers as Trump threatens to take control of the historic waterway.
-
The American Opportunity Tax Credit (AOTC): How Much Is It Worth?Tax Credits This tax break can help you offset $2,500 in qualifying expenses tied to your higher education. Here's what you need to know.
-
Does Your State Have a Child and Dependent Care Tax Credit?
Child and Dependent Care Tax Credit Over two dozen states, plus the District of Columbia offer tax credits or deductions for working families.
-
Should Rent Be Part of Your Retirement Plans?Retirement Taxes Retiree renters may qualify for potential tax savings. Are you considering a move?
-
On the Naughty List: Holiday Tax Scams to Look Out ForTax Tips The IRS says scammers are on the prowl for your financial information. Know the signs so you don't fall victim.
