Property taxes are a significant ongoing expense of homeownership in Maine. Understanding how they’re calculated, what exemptions you might qualify for, and how they compare across towns helps you make informed decisions about where to buy and what to budget.
Property Tax Overview
In Maine, property taxes are assessed locally by town—each municipality sets its own mill rate. Property tax is typically the largest ongoing cost of homeownership after mortgage and utilities. Maine offers a homestead exemption to primary residents, reducing assessed value and therefore taxes.
How Property Taxes Are Calculated
Assessed Value × Mill Rate ÷ 1,000 = Annual Property Tax
- Assessed Value: The town assessor estimates your property’s market value—roughly 70% of actual market value in most Maine towns.
- Mill Rate: Expressed as dollars per $1,000 of assessed value. A mill rate of 15.0 means $15 per $1,000.
- Example: $210,000 assessed value × 15.0 mill rate ÷ 1,000 = $3,150 annual property tax.
Understanding Mill Rates
Mill rates vary dramatically across Maine towns. Rural areas might be 12–14 mills; urban centers like Portland might be 18–20 mills. This is why your property tax bill differs so much depending on where you buy. See our detailed breakdown: Property Taxes by Town.
Maine Homestead Exemption
Maine’s homestead exemption exempts approximately $25,000 of assessed value from taxation for primary residents. You must own your home, occupy it as your primary residence on April 1, and have been a Maine resident for at least 12 months. File annually with your town assessor’s office.
Other Tax Exemptions
- Veteran Exemption: Disabled veterans may qualify for additional or full exemption.
- Blind Exemption: Blind homeowners may qualify.
- Elderly Exemption: Some towns offer additional exemption for residents 65+.
- Property Tax Fairness Credit: Low-income homeowners may qualify for state credits.
Visit maine.gov/revenue for official property tax information.
Property Taxes by Town
Property tax rates vary significantly. When evaluating where to buy, factor in property tax. A home in a low-rate town might save you thousands annually. See our analysis: Property Taxes by Town.
Appealing Your Assessment
If you believe your property has been over-assessed: request a review with your town assessor, file an abatement application (deadline usually April 1), or appeal to Maine’s Board of Assessment Review. Provide comparable sales data supporting a lower value.
Frequently Asked Questions
How is my property tax calculated?
Assessed Value × Mill Rate ÷ 1,000. The town assessor determines assessed value; the town sets the mill rate based on budget needs.
What is the Maine homestead exemption?
An annual benefit for primary residents exempting approximately $25,000 of assessed value from taxation. Claim it annually with your town assessor’s office before April 1.
Can I appeal my property assessment?
Yes. Request a review with your town assessor or file an abatement application. Provide comparable sales data supporting a lower value.
How do mill rates differ across Maine towns?
Rural areas might be 12–14 mills; urban centers 18–20 mills. See our town-by-town breakdown.
What other exemptions might I qualify for?
Maine offers exemptions for disabled veterans, blind homeowners, and in some cases elderly residents. Contact your town assessor’s office. Visit maine.gov/treasurer for details.
Use our mortgage calculator to estimate total costs including property tax. Questions about property taxes? The Maine Real Estate Team can help. Let’s talk.
Written by The Maine Real Estate Team — your local Maine real estate experts.