Maine State Tax Guide
Maine state tax rates and rules for income, sales, property, fuel, cigarette, and other taxes that impact residents.
![Maine flag flying in the sky for Maine state tax guide](https://cdn.mos.cms.futurecdn.net/LDu3qXuEotiWDbLSbLsnam-415-80.jpg)
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 benefits. 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.
![https://cdn.mos.cms.futurecdn.net/hwgJ7osrMtUWhk5koeVme7-200-80.png](https://cdn.mos.cms.futurecdn.net/hwgJ7osrMtUWhk5koeVme7-320-80.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.
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 gas tax (motor fuel)
Gasoline: $0.30 per gallon.
Diesel: $0.312 per gallon.
Maine taxes on alcohol and tobacco
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.
More From Kiplinger
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.
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.
-
Confused by Annuities? Making Sense of the Different Types
Many investors aren't sure if annuities are a good option for meeting financial goals. Let's look at the different categories, along with their pros and cons.
By Kris Maksimovich, AIF®, CRPC®, CPFA®, CRC® Published
-
Talkin' 'Bout My Generational Wealth: Baby Boomers
With retirement, each generation has different priorities and challenges. For Baby Boomers, it's a matter of ready or not, here it comes.
By Alvina Lo Published
-
IRS Ends Inherited IRA Confusion: Annual RMDs Required for Many
IRAs The agency has resolved a major point of uncertainty for inherited IRA beneficiaries.
By Kelley R. Taylor Last updated
-
$145 Million in ‘Senior Freeze’ Checks Mailed
Property Tax What you need to know about New Jersey's property tax relief program for older adults.
By Kate Schubel Published
-
TaxAct Class Action Settlement: Details to Know
Tax Filing A multimillion-dollar settlement over alleged data privacy violations affects some TaxAct users.
By Kelley R. Taylor Last updated
-
An IRA Contribution Option You Might Not Know
IRAs Retirement savings might not have to take a back seat just because your partner doesn't earn income.
By Kelley R. Taylor Last updated
-
Project 2025 Tax Overhaul Blueprint: What You Need to Know
Tax Proposals Some people wonder what Project 2025 is and what it suggests for taxes.
By Kelley R. Taylor Last updated
-
The Taxes That Come out of Your Paycheck
Payroll Tax Your take-home pay is often less than expected due to several payroll tax withholdings you need to know.
By Kelley R. Taylor Last updated
-
Seven States Where Gas Tax Increased July 1
Gas Taxes Since July has arrived, drivers in several states are facing a gas tax hike.
By Kelley R. Taylor Last updated
-
401(k) Withdrawal Penalty Rule Changes for 2024
Tax Rules More people are taking early emergency withdrawals from retirement savings accounts. New rules might offer some relief.
By Kelley R. Taylor Last updated