Maine taxes — property, income, sales, retirement

Property tax, income tax, sales tax, and retirement-income treatment in Maine. Quick read for movers, retirees, and remote workers.

Income tax up to 7.15%. Higher property tax. 5.5% sales. SS untaxed; pension exclusion $35k.
Effective property tax
1.24%
of home value/yr
Income tax (top rate)
7.15%
Sales tax (state)
5.50%
local adds more
SS taxed by state?
No

Property tax

Maine’s effective property tax rate is approximately 1.24% of assessed home value per year. On a $350,000 home that’s about $4,340/yr. Rates vary by county and municipality — this is a state-wide average.

Income tax

Top marginal rate: 7.15%. Brackets vary by income. For wage earners, the effective rate depends on filing status, deductions, and credits.

Sales tax

State base rate: 5.50%. Local municipal and county additions can raise the combined rate by 1-4 percentage points.

Retirement income

Social Security: Not taxed by state. Pensions & 401(k) withdrawals: Partial exclusion / credit available.

Top cities in Maine

Portland · pop 69,568 · momentum 66

Lewiston · pop 38,772 · momentum 76

Bangor · pop 32,446 · momentum 72

South Portland · pop 26,994 · momentum 72

Auburn · pop 25,200 · momentum 71

Sanford · pop 22,497 · momentum 70

Compare to other states: All 50 state tax overviews · All Maine cities · Best Maine cities for retirees

Sources: Tax Foundation effective property tax rankings, state DOR publications, AARP retirement tax guide. 2024/2025 representative figures — verify with a CPA for your specific situation.