Maine state taxes at a glance
| Individual income tax | Graduated (bracket) income tax |
|---|---|
| Rate structure | Three graduated rates (5.8%, 6.75% and 7.15%) in Tax Foundation’s 2026 table, with a standard deduction and personal exemption phased out at higher incomes. Verify current-year figures. |
| Tax agency | Maine Revenue Services |
| Main individual return | Form 1040ME (residents, part-year residents and nonresidents) |
| Local income taxes | No local income taxes. |
| Sales tax | A 5.5% state rate with no local sales taxes, plus higher rates on certain items such as meals and lodging. |
| Property tax | Assessed and billed by towns and cities. Maine has a homestead exemption for owner-occupied primary residences and a Property Tax Fairness Credit that is claimed on the income tax return. |
| Retirement & Social Security | Maine does not tax Social Security benefits. Pension income may qualify for a deduction subject to limits; confirm with Maine Revenue Services. |
Verify current-year figures: state rates, brackets, credits and filing rules change. Treat this page as a starting orientation and confirm details on the Maine Revenue Services website.
How Maine income tax works
Maine’s income tax has three brackets: Tax Foundation’s 2026 table lists 5.8% on the first slice of income, 6.75% above about $27,400 (single), and 7.15% above about $64,800. The standard deduction and personal exemption are set by the state and begin to phase out at higher incomes: Tax Foundation notes the standard deduction phases out above roughly $100,000 for single filers and the personal exemption above roughly $333,000, with amounts indexed each year. Dependents are handled through a refundable credit rather than an exemption; Tax Foundation lists $305 for dependents age six and older and $610 for those five and under for 2025.
The credits are a distinctive part of the Maine system. The Property Tax Fairness Credit and the Sales Tax Fairness Credit are claimed on Form 1040ME and can be refundable, so filing is worthwhile even if you owe no tax and have low income. Maine Revenue Services administers both and says its Maine Tax Portal supports claiming them, with some restrictions. A federal earned income credit is separate; Maine also has its own state-level credits tied to it.
Maine’s sales tax is a flat 5.5% with no local add-ons, and property tax is billed by towns, with a homestead exemption for primary residences. Maine does not tax Social Security benefits, and some pension income may be deducted subject to limits. For people who moved into or out of the state during the year, Form 1040ME covers part-year residents and nonresidents with income allocation rules; keep dates and documents.
Filing your Maine return and free options
Maine Revenue Services offers free online filing of Form 1040ME through the Maine Tax Portal, including the property tax and sales tax fairness credits, though some restrictions apply. You can also e-file through participating tax software or a paid preparer, or file a paper return. The 2025 tax-year forms are the ones to use for returns filed in 2026.
The portal also handles payments, refund status and account messages. If you owe and cannot pay, see what to do if you can’t pay. For federal free filing, see our free filing hub; for free in-person help, see VITA.
For the federal side, see our guides to free federal filing options and the complete guide to filing taxes.
Things Maine residents often ask about
- Fairness credits: claim the Property Tax Fairness Credit and Sales Tax Fairness Credit on Form 1040ME; they can be refundable.
- Phase-outs: standard deduction and personal exemption phase out at higher incomes, so high earners see a smaller benefit.
- Dependent credit: dependents are handled through a refundable credit instead of an exemption.
- Free Maine Tax Portal filing: available with some restrictions; check Maine Revenue Services for what is supported.
- Homestead exemption: applies to primary residences through your town; it is separate from the state income tax return.
Official Maine links
- Maine Revenue Services
- Maine: electronic filing
- Maine: individual income tax FAQ
- Federation of Tax Administrators: State tax agencies
Frequently asked questions
What are Maine’s income tax brackets?
Tax Foundation’s 2026 table lists 5.8%, 6.75% and 7.15%, with bracket widths that Maine adjusts each year. Check Form 1040ME instructions for current thresholds.
Can I file my Maine return for free?
Yes. Maine Revenue Services offers free online filing of Form 1040ME through the Maine Tax Portal, with some restrictions.
What are the Maine fairness credits?
The Property Tax Fairness Credit and Sales Tax Fairness Credit are claimed on Form 1040ME and can reduce your tax or produce a refund if you qualify.
General information only — not tax, legal or financial advice. Tax figures change every year; verify the current numbers at IRS.gov or with a qualified professional. Read the full disclaimer.