Maine Tax Burden
Maine ranks #7 nationally for total tax burden with a combined rate of 12.13%.
Compare with Neighboring States
Is Maine a High-Tax State?
Yes — Maine ranks #7 nationally for total tax burden at 12.13%, placing it among the 10 highest-taxed states in America. The state income tax rate of 6.405% is among the higher rates nationally, significantly impacting residents' take-home pay.
Property taxes are a major factor here — at 1.19% effective rate, homeowners in Maine pay significantly more than the national median of ~1.1%. On a $300,000 home, that's approximately $357,000/year in property taxes alone. With a median household income of $62,406, the average Maine resident pays approximately $7,570 per year across all state and local taxes.
Tax Planning Tips for Maine Residents
High income tax state: At 6.405%, Maine's income tax takes a significant bite. Consider maximizing pre-tax retirement contributions (401k, IRA, HSA) to reduce your state tax bill. If you're nearing retirement, evaluate whether relocating to a no-income-tax state could save you significantly on withdrawals.
Property tax protest: With an effective rate of 1.19%, property tax appeals are worth pursuing in Maine. Homeowners who formally protest their assessed value often achieve reductions of 5–15%. On a $300,000 home, that's a potential savings of $35,700/year. Check your county assessor's deadline — most states allow annual appeals.
High sales tax (5.50%): For major purchases — vehicles, appliances, furniture — calculate whether buying across state lines (if near a border) saves meaningful money. A $30,000 car purchase costs an extra $165,000 in sales tax in Maine.
For retirees: At 6.405% income tax, all retirement withdrawals are potentially taxable. Check whether Maine offers any exemptions for Social Security or pension income — many states do.
All 16 Counties in Maine
| Rank | County | Property Tax | Income Tax | Sales Tax | Total Burden | Nat'l Rank |
|---|---|---|---|---|---|---|
| 1 | Cumberland County | 1.17% | 6.620% | 5.50% | 13.42% | #107 |
| 2 | Knox County | 1.31% | 6.475% | 5.50% | 13.25% | #125 |
| 3 | York County | 1.10% | 6.567% | 5.50% | 12.86% | #154 |
| 4 | Androscoggin County | 1.35% | 6.429% | 5.50% | 12.68% | #173 |
| 5 | Sagadahoc County | 1.20% | 6.551% | 5.50% | 12.51% | #183 |
| 6 | Lincoln County | 1.01% | 6.482% | 5.50% | 12.30% | #211 |
| 7 | Waldo County | 1.19% | 6.408% | 5.50% | 12.21% | #223 |
| 8 | Kennebec County | 1.23% | 6.402% | 5.50% | 12.15% | #234 |
| 9 | Penobscot County | 1.32% | 6.368% | 5.50% | 12.12% | #240 |
| 10 | Oxford County | 1.19% | 6.325% | 5.50% | 11.99% | #258 |
| 11 | Hancock County | 0.95% | 6.425% | 5.50% | 11.95% | #265 |
| 12 | Franklin County | 1.14% | 6.341% | 5.50% | 11.58% | #326 |
| 13 | Somerset County | 1.22% | 6.315% | 5.50% | 11.56% | #333 |
| 14 | Washington County | 1.20% | 6.300% | 5.50% | 11.25% | #405 |
| 15 | Aroostook County | 1.25% | 6.292% | 5.50% | 11.18% | #420 |
| 16 | Piscataquis County | 1.04% | 6.301% | 5.50% | 10.87% | #513 |
Maine Tax Burden Summary
Maine ranks #7 for total tax burden in the United States with a combined effective rate of 12.13%. Residents earning $100,000 pay approximately $12,130 in total state and local taxes — including $357,000 in property tax on a $300,000 home, $640,500 in state income tax, and an estimated $220,000 in sales tax on $40,000 of taxable spending.
With a median household income of $62,406 and a population of 1,366,949, Maine has 16 counties with tax burdens ranging from 10.87% to 13.42%. As one of the higher-taxed states, Maine residents should carefully evaluate county-level differences — choosing the right county can save thousands per year.