Maine State Taxes: What You’ll Owe in the 2026 Tax Season

How is property taxed?

The statewide average property tax rate is 0.98 percent of a home’s assessed value, although actual rates vary by county, according to the latest data from the Tax Foundation. Rates range from a low of 0.78 percent in Piscataquis County to a high of 1.19 percent in Androscoggin County. The median property taxes paid ranged from $1,537 in Piscataquis County to $4,707 in Cumberland County.

What about sales and other taxes?

• Sales tax: Maine has a 5.5 percent state sales tax and no local sales tax. The state also imposes a higher tax on certain items, such as 8 percent on prepared food, 9 percent on hotels or lodging and 10 percent on short-term auto rentals. Exemptions include groceries, medicine, medical devices and publications such as newspapers.
• Gas and diesel: Gasoline is taxed at 30 cents per gallon, and diesel is taxed at 31.2 cents per gallon.
• Vehicle tax: The state has an annual excise tax on vehicles that is calculated based on the age of the vehicle and the manufacturer’s suggested retail price, with the cost decreasing over the span of a vehicle’s life. More information is available here.
• Alcohol: Consumers pay 5.5 percent sales tax on spirits, wine and beer. Maine also charges a premium tax of $1.25 per gallon of 100 proof spirits. The proceeds of this tax go to funding substance use disorder and treatment in the state. When purchasing alcohol for consumption on premises at a restaurant or bar, consumers pay an 8 percent liquor sales tax instead of the 5.5 percent state sales tax.
• Lottery: The state withholds 24 percent in federal taxes and 7.15 percent in state taxes on any winnings over $5,000. However, actual taxes owed will vary depending on a winner’s personal income and tax situation.

Will my heirs or estate have to pay inheritance and estate tax?

Maine has an estate tax. For people who died in 2025, the exemption was for estates valued at below $7 million. For those who die in 2026, there is an exemption for estates valued below $7,160,000. The estate tax brackets and rates are below:

Are there any tax breaks for older residents?

• State property tax deferral program: This gives some taxpayers the opportunity to defer paying property taxes. While residents are enrolled in the program, the state pays their property taxes, including up to two years of delinquent taxes. The program continues until the taxpayer withdraws or is disqualified. At that point, the taxpayer (or their estate or heirs) must repay the total deferred taxes plus interest and costs. To qualify, homeowners must be 65 years or older or unable to work due to disability. Additionally, they must have income below $80,000 for the prior year and liquid assets below $100,000. If multiple taxpayers are in one homestead, the maximum income is also $80,000, although the maximum liquid assets in that case is $150,000. The application for the program is available here.
• Homestead exemption: This exemption offers property tax relief for taxpayers who have owned their Maine home for at least 12 months and used it as their primary and permanent residence. Eligible property owners receive an exemption of up to $25,000 from the value of their home. The application is available here.
• Veteran exemption: This exemption is available to veterans 62 and older who served during a war. It’s also extended to those who are receiving 100 percent disability as a veteran, or who became 100 percent disabled while serving. Veterans can receive a $6,000 exemption from the taxable value of their home. The benefit can be extended to their surviving spouse and minor children. An explanation of eligibility can be found here, and the application can be found here.

Are military retirement pensions taxed?

The state does not tax military pensions.

What is the deadline for filing taxes in 2026?

The deadline for filing 2025 state and federal taxes was April 15, 2026. Maine and the federal government offer a six-month extension until Oct. 15, 2026, for people who were unable to file by April 15. However, taxpayers must have paid at least 90 percent of the state taxes they owed by the original due date and 100 percent of the federal taxes owed by the original date.

More AARP Financial Resources

• AARP Retirement Calculator Determine if you are saving enough to retire when — and how — you want.
• AARP Social Security Calculator Figure out when to claim and how to maximize your Social Security benefits.
• AARP Tax Tools Explore resources to help you calculate and prepare taxes.