Maine Tax Calculator 2026

Maine Income Tax

Maine imposes a graduated state income tax with three brackets for 2026. The rates are 5.8% on taxable income up to approximately $24,500 for single filers, 6.75% on income between $24,500 and $58,050, and 7.15% on all taxable income above $58,050. For married couples filing jointly, the bracket thresholds are roughly doubled. Maine indexes its tax brackets, standard deduction, and personal exemption amounts annually for inflation, which prevents “bracket creep” and ensures that the tax structure adjusts with the cost of living.

Maine’s top rate of 7.15% places it among the higher-tax states in New England, though it is lower than the top rates in neighboring Vermont (8.75%) and well below the top rates in states like California (13.3%) or New York (10.9%). Maine’s income tax was restructured significantly in 2016, when the state consolidated from four brackets to three and adjusted the rates. Prior to that reform, Maine’s top rate was 7.15% but applied at a lower income threshold.

The standard deduction in Maine is approximately $14,600 for single filers and $29,200 for married couples filing jointly, closely mirroring the federal standard deduction. Maine also offers a personal exemption of approximately $5,000 per filer and dependent. The state provides a variety of tax credits, including an earned income tax credit equal to 12% of the federal EITC and a child tax credit. Maine’s income tax brackets are as follows:

Taxable Income (Single)	Rate
$0 – $24,500	5.80%
$24,500 – $58,050	6.75%
Over $58,050	7.15%

Maine Sales Tax

Maine levies a 5.5% general sales tax with no local additions, making compliance straightforward for businesses and consumers alike. The 5.5% rate is among the lower sales tax rates in the Northeast. Maine does not allow cities or towns to add their own sales taxes, so the rate is uniform throughout the state. However, Maine applies higher rates to certain categories: prepared food and restaurant meals are taxed at 8%, short-term lodging (hotels, vacation rentals) at 9%, and automobile rentals at 10%.

Maine exempts grocery food purchased for home consumption, prescription drugs, and most medical devices from sales tax. Clothing is not exempt in Maine, unlike in some neighboring New England states. Maine has adopted economic nexus rules, requiring out-of-state sellers with more than $100,000 in Maine sales to collect and remit the state sales tax. The absence of local sales taxes is a distinctive feature that simplifies business operations in Maine compared to many other states.

Maine Property Tax

Maine’s average effective property tax rate is approximately 1.09%, which is near the national average. Property taxes are the primary revenue source for Maine’s municipalities and school districts, as the state does not levy a general-purpose local income tax. Property is assessed at 100% of fair market value (though in practice, assessment ratios can vary by municipality and are periodically equalized by the state). Individual town mill rates determine actual tax bills and vary significantly across the state.

Maine offers a Homestead Exemption that reduces the taxable value of a primary residence by $25,000 for all qualifying Maine homeowners. There is also a Property Tax Fairness Credit available through the state income tax return, which provides refundable credits to homeowners and renters whose property taxes (or rent constituting property taxes) exceed a certain percentage of their income. Additionally, the Maine Residents Property Tax and Rent Refund Program provides assistance to elderly residents with lower incomes. Coastal communities like Portland, Camden, and Bar Harbor tend to have high property values, resulting in larger tax bills even when mill rates are moderate.

Maine Hospitality & Tourism Taxes

Tourism is a major component of Maine’s economy, particularly during the summer months when visitors flock to the coast, Acadia National Park, and the state’s many lakes and mountains. Maine capitalizes on this by applying elevated sales tax rates to tourism-related purchases. The 8% rate on prepared food and restaurant meals, 9% rate on lodging, and 10% rate on car rentals all represent premiums above the base 5.5% rate. These enhanced rates generate significant revenue from out-of-state visitors, effectively exporting some of Maine’s tax burden to tourists.

The lodging tax applies to hotels, motels, bed-and-breakfasts, and short-term vacation rentals (including platforms like Airbnb and VRBO). Maine was one of the early states to explicitly apply its lodging tax to short-term rental platforms, and it requires these platforms to collect and remit the tax on behalf of hosts. For a family spending a week in a coastal Maine vacation rental at $300 per night, the 9% lodging tax adds $189 to their bill. This revenue helps fund tourism marketing through the Maine Office of Tourism and supports infrastructure in communities that bear the impact of seasonal visitor surges.

Maine vs. Neighboring States

• Maine vs. New Hampshire: New Hampshire has no state income tax on wages (only on interest and dividends, which is being phased out) and no state sales tax. This makes New Hampshire significantly cheaper for most earners. However, New Hampshire has much higher property taxes (averaging about 1.86%). Many Maine-NH border residents weigh these trade-offs carefully.
• Maine vs. Vermont: Vermont’s top income tax rate of 8.75% is higher than Maine’s 7.15%. Vermont’s sales tax is 6%, slightly higher than Maine’s 5.5%. Property taxes in Vermont average about 1.73%, also higher than Maine. Overall, Maine offers a slightly lower tax burden than Vermont.
• Maine vs. Massachusetts: Massachusetts has a 5% flat income tax rate (plus 4% surtax on income over $1M), which is lower than Maine’s top rate for most taxpayers. Massachusetts has a higher sales tax of 6.25% but exempt clothing under $175. Massachusetts property taxes (1.12%) are comparable to Maine’s.
• Maine vs. Connecticut: Connecticut has graduated rates up to 6.99% and an additional 3-year phase-out recapture for higher incomes. Connecticut’s sales tax is 6.35%, higher than Maine. Property taxes in Connecticut are among the highest in the nation at about 1.63%.