Retirement Tax Breakdown for Maine Residents

Complete Maine retirement tax guide: income tax rates, capital gains treatment, Social Security and pension taxation, property taxes, and sales tax. Overall retiree-friendliness rank: #36 of 51.

State Income Tax
7.15% top rate

3 bracket(s)

Capital Gains Rate
7.15%

Treated as ordinary income

Property Tax Rate
1.24%

#15 (Low)

Sales Tax Rate
5.5%

State 5.5% + local avg 5.5%

Less Tax-Friendly State

Maine exempts Social Security and offers a $10,000 pension deduction. However, high income tax rates and property taxes reduce retiree-friendliness.

Retirement Income Taxation

Social Security

Not taxed

Pension Income

Taxable

Retirement Exemption

$10,000

Tax Comparison Summary

State income tax7.15% top
Capital gains7.15%
Property tax1.24% effective
Sales tax5.5% combined
Overall retiree rank#36 of 51

Maine Income Tax Brackets

State Tax Bracket Schedule

RateFromTo
5.8%$0$26,050
6.75%$26,050$61,600
7.15%$61,600No limit

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