Maine taxes and cost of living (2026)
Maine has a graduated income tax from 5.80% to 7.15%. A $100,000 salary is worth about $68,487 a year in national buying power after every tax and Maine's prices, #33 of 51 (the state average is $70,397). Retiring on $50,000 a year takes about $1.25M, #24 lowest.
- State income tax
- 5.8%–7.15%
- Sales tax (avg. combined)
- 5.50%
- Property tax (effective)
- 0.91%
- Cost of living
- 97.0
- US = 100
- Social Security taxed?
- No
- Median home
- $342K
Take-home pay in Maine
Single filer, 10% of salary to a pre-tax 401(k), standard deduction, renting. All taxes include estimated sales tax.
| Salary | Federal | FICA | State + local | All-in tax rate | Take-home | In US dollars |
|---|---|---|---|---|---|---|
| $50,000 | $3,220 | $3,825 | $1,642 | 18.2% | $36,313 | $37,417 |
| $75,000 | $6,020 | $5,738 | $3,253 | 20.9% | $52,489 | $54,085 |
| $100,000 | $10,970 | $7,650 | $4,914 | 24.4% | $66,466 | $68,487 |
| $150,000 | $21,134 | $11,475 | $8,871 | 28.5% | $93,520 | $96,362 |
| $250,000 | $43,304 | $15,514 | $16,111 | 30.8% | $150,071 | $154,632 |
What it takes to retire in Maine
Married couple, age 60, withdrawals 60% from 401(k)/IRA, 20% Roth, 20% brokerage, no Social Security yet, renting. Spending at US-average prices.
| Spending | At ME prices | Income taxes | All taxes | FI number |
|---|---|---|---|---|
| $40,000 | $38,820 | $0 | $683 | $970.5K |
| $60,000 | $58,230 | $291 | $1,316 | $1.46M |
| $80,000 | $77,640 | $1,530 | $2,897 | $1.98M |
| $120,000 | $116,460 | $4,337 | $6,387 | $3.02M |
Maine tax rules at a glance
- Income tax: Maine has a graduated income tax from 5.80% to 7.15%. New for 2026: a 2% surcharge on Maine taxable income over $1,000,000 single / $1,500,000 MFJ and HOH ($750,000 MFS), indexed from 2027; this makes the top rate 9.15%. It was enacted in LD 2212 (2026 supplemental budget). The revised MRS schedule of May 20, 2026 shows a $15,700 / $31,400 standard deduction and a $5,300 personal exemption per person. Both phase out at higher incomes.
- Payroll: Maine PFML: 0.50% of wages up to $184,500.
- Local income tax: No local income taxes.
- Social Security: Not taxed. Fully exempt.
- Retirement income: Pension income deduction of up to $48,216 per person (2025 figure; 2026 not yet published). It covers pensions, IRA and 401(k) distributions, but is reduced by Social Security and Railroad Retirement benefits received. An income-based phaseout applies from 2025. Military retirement is fully exempt.
- Capital gains: Taxed as ordinary income. The 2026 2% surcharge applies to income over the thresholds.
- Sales tax: 5.50% state rate, 5.50% average with local taxes; groceries exempt.
Compare Maine with
Frequently asked questions
Does Maine have a state income tax?
Maine has a graduated income tax from 5.80% to 7.15%. New for 2026: a 2% surcharge on Maine taxable income over $1,000,000 single / $1,500,000 MFJ and HOH ($750,000 MFS), indexed from 2027; this makes the top rate 9.15%. It was enacted in LD 2212 (2026 supplemental budget). The revised MRS schedule of May 20, 2026 shows a $15,700 / $31,400 standard deduction and a $5,300 personal exemption per person. Both phase out at higher incomes.
How much is $100,000 after taxes in Maine?
A single filer earning $100,000 who puts $10,000 in a 401(k) takes home about $66,466 after federal, state and local income taxes and payroll taxes, an all-in effective rate of 24.4% including estimated sales tax.
Does Maine tax Social Security?
No. Maine does not tax Social Security benefits. Fully exempt.
How much do you need to retire in Maine?
To spend $50,000 a year (at US-average prices) with withdrawals mostly from a 401(k)/IRA, you'd need about $1.25M in Maine using the 4% rule, after its cost of living and taxes.
Is Maine expensive to live in?
Maine's cost of living index is 97.0, where the US average is 100 (BEA Regional Price Parities, 2024). The median home is worth about $341,900 and median rent is $1,210 a month.
How this is calculated
- Income taxes use 2026 federal and state brackets, standard deductions and personal exemptions or credits. No itemized deductions or other credits. Local income taxes use a typical statewide rate (for example, Maryland's county taxes or New York City's); many places have none.
- Payroll taxes include Social Security (6.2% up to the wage base), Medicare, and employee-paid state programs such as California SDI or Washington's paid leave premium. A married household salary is treated as two equal earners for payroll-tax caps.
- Cost of living uses the Bureau of Economic Analysis's Regional Price Parities (2024), where the US average is 100. Spending you enter at national prices is scaled by each state's index.
- Sales tax is estimated as the average combined state and local rate on about a third of spending (more where groceries are taxed). It is shown for context but not added to costs, because the price parities already include it. Property tax applies the state's effective rate to its median home value (Census ACS 2024) if you own.
- Retirement solves for the withdrawal that covers your spending plus the taxes it triggers, using each state's treatment of Social Security, retirement-account withdrawals and capital gains, then multiplies by 25 (a 4% withdrawal rate).
- Years to FI starts from zero, adds what you save each year in that state, and grows it at a 5% real return until it reaches that state's FI number.
Estimates for comparison, not tax advice. Your actual taxes depend on deductions, credits, where in the state you live and more. Sources: BEA Regional Price Parities, Census ACS, state sales tax rates, IRS, state revenue departments (per state).