Overview
Maine levies a graduated income tax with three brackets, ranging from 5.80% to 7.15%. The top rate of 7.15% applies to income above $61,600 for single filers and $123,100 for married filing jointly. Even the lowest bracket rate of 5.80% is relatively high compared to many states, giving Maine one of the higher overall income tax burdens in New England.
Maine conforms to the federal standard deduction ($14,600 single, $29,200 married filing jointly) and provides personal exemptions of $4,700 per person. These exemptions phase out for high-income taxpayers, beginning at $298,500 of AGI. Maine's starting point is federal adjusted gross income with state-specific additions and subtractions.
Maine Tax Brackets 2026
| Income Range | Tax Rate | Tax on Bracket |
|---|---|---|
| $0 - $26,050 | 5.8% | $1,511 |
| $26,051 - $61,600 | 6.75% | $2,400 |
| Over $61,601 | 7.15% | -- |
Standard Deductions and Exemptions
| Filing Status | Standard Deduction | Personal Exemption |
|---|---|---|
| Single | $14,600 | $4,700 |
| Married Filing Jointly | $29,200 | $9,400 |
| Head of Household | $21,900 | $4,700 |
| Per Dependent | — | $4,700 |
Understanding Maine Taxes
Maine does not tax Social Security benefits at the state level, following the federal exclusion. The state provides a pension income deduction of up to $35,000 per year for qualifying retirees, reduced by any Social Security benefits received. Military retirement pay is eligible for this deduction. Maine also offers a Property Tax Fairness Credit for residents who pay property tax or rent, with a maximum credit of $1,000 ($1,500 for seniors 65+).
Maine's sales tax rate is 5.50% with no local additions. Groceries and prescription drugs are exempt. The uniform statewide rate keeps the sales tax simple. Maine also has a 9.00% tax on restaurant meals and a 9.00% lodging tax, which are higher than the general rate and reflect Maine's tourism-heavy economy.
Property taxes in Maine average approximately 1.24%, above the national average. The state's property tax burden is a significant concern for residents, particularly in coastal towns with high property values. Maine's Homestead Exemption reduces the assessed value of a primary residence by $25,000. The Property Tax Fairness Credit provides additional relief through the income tax system for those whose property taxes or rent are disproportionate to their income.
Maine's cost-of-living index is approximately 108, slightly above the national average. Portland and its suburbs are the most expensive area, with housing costs driven by a tight market and growing appeal to remote workers. Northern and western Maine offer much more affordable living but with fewer employment opportunities. Year-round heating costs (typically oil or wood) are a significant household expense that is often underestimated by newcomers.
Filing Tips for Maine
Claim the Property Tax Fairness Credit on your Maine return even if you rent — renters qualify based on rent paid
Budget for heating costs — Maine winters are long and heating oil or wood costs can add $2,000-$4,000+ per year to household expenses
The $25,000 Homestead Exemption applies automatically after 12 months of residency — file with your municipality
State Revenue Authority
For the most current tax information, visit the official Maine tax authority:
maine.gov/revenueRelated Calculators
Frequently Asked Questions
For educational purposes only -- not financial or tax advice. Tax rates shown are based on 2026 data and may not reflect recent changes. Consult a tax professional for your specific situation.