Maine State Tax: Overview
Maine's state income tax rates start at 5.8%, which is relatively high when 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.]
Maine Income Taxes
Maine Tax on Retirement Benefits: Maine does not tax Social Security or Railroad Retirement befits. Military benefits are also tax-exempt. Retirees who receive MainePERS benefits may qualify for a pension exclusion of up to $30,000. The exclusion increases to $35,000 in 2024.
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Maine Income Tax Range: Single filers and married filing separately
| Less than $24,500 | 5.8% |
| $24,500 $58,049 | 6.75% of the amount over $24,500 |
| $58,050 or more | 7.15% of the amount over $58,050 |
Maine Income Tax Range: Head of household
| Less than $36,750 | 5.8% |
| $36,750 to $87,099 | 6.75% of the amount over $36,750 |
| $87,100 or more | 7.15% of the excess over $87,100 |
Maine Income Tax Range: Married filing jointly
| Less than $49,050 | 5.8% |
| 49,050 to $116,099 | 6.75% of the amount over $49,050 |
| $116,100 or more | 7.15% of the amount over $116,100 |
Maine Sales Tax
The statewide sales tax in Maine is 5.5%, and there are no additional local sales taxes, according to the Tax Foundation.
- Grocery "staples" are tax-exempt.
- Prescription drugs are tax-exempt.
- Some feminine hygiene products are tax-exempt.
How Much Are Property Taxes in Maine?
In Maine, the effective tax rate is 1.28%, which is about average compared to other states.
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 Motor Fuel Taxes
Gasoline: $0.30 per gallon.
Diesel: $0.312 per gallon.
Maine Alcohol and Tobacco Taxes
| Cigarettes | $2.00 per pack |
| Chewing tobacco and snuff | $2.02 per ounce |
| Recreational marijuana | 10% of retail price |
| Beer | $0.35 per gallon |
| Wine | $0.60 per gallon |
| Wine (sparkling) | $1.25 per gallon |
| Liquor | State-Controlled |
Maine Estate and Inheritance Taxes
Maine has an estate tax with an exemption of $6.41 million for 2023. Tax rates range from 8% to 12%. Gifts given up to one year before the decedent’s death are considered part of the estate.
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