Maine Tax Guide 2025

Explore Maine's 2025 state tax rates for income, sales, property, retirement, and more. Learn how Maine compares nationwide.

Maine flag flying in the sky for Maine state tax guide
(Image credit: Getty Images)

Maine state tax: Overview

If you've ever wondered how Maine stacks up when it comes to taxes, here's what you need to know: Maine's state income tax starts at 5.8%, which puts it on the higher end compared to much of the country.

But there's an upside—no local sales taxes anywhere in the state, which means what you see is what you pay at the register.

And if you're thinking long term, Maine does have an estate tax, though estates under $7 million are in the clear.

Subscribe to Kiplinger’s Personal Finance

Be a smarter, better informed investor.

Save up to 74%
https://cdn.mos.cms.futurecdn.net/hwgJ7osrMtUWhk5koeVme7-200-80.png

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.

Sign up

[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 tax

"Main street" in Portland, Maine.

(Image credit: Getty Images)

Maine has a graduate state individual income tax rate that ranges from 5.80% to 7.15%, according to the Tax Foundation.

Maine retirement taxes

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.

  • Social Security: Not taxable
  • Pensions: Partially taxable (Federal pension income is exempt)
  • 401(k) and IRA Distributions: Taxable

Maine sales tax

Still life of a small shopping cart with $1 USD bills

(Image credit: Getty Images)

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?

little model house on a table

(Image credit: Getty Images)

In Maine, the effective tax rate is 0.94%, 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 

rendering of a yellow car against a yellow background

(Image credit: Getty Images)
Swipe to scroll horizontally

Gasoline

$0.30 per gallon

Diesel

$0.31 per gallon

Source: Sales Tax Handbook

Maine taxes on alcohol and tobacco

Swipe to scroll horizontally
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

Medical marijuana

5.50%

Recreational marijuana

10%

Source: Sales Tax Handbook

Swipe to scroll horizontally
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 $7 million for 2025. 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

Katelyn Washington
Former Tax Writer

Katelyn has more than 6 years of experience working in tax and finance. While she specialized in tax content while working at Kiplinger from 2023 to 2024, Katelyn has also written for digital publications on topics including insurance, retirement, and financial planning and had financial advice commissioned by national print publications. She believes knowledge is the key to success and enjoys providing content that educates and informs.

With contributions from