The short version
- Social Security taxed?
- No
- Income tax
- Brackets 5.8%–7.15%
- Property tax on a $300,000 home
- ≈ $2,940 / yr ($245 / mo)
- Everyday cost index (U.S. = 100)
- 113
- January / July high
- 31°F / 80°F
- Sales tax (state + local avg)
- 5.50%
Retiring in Maine
Beautiful, safe, and quiet with mild summers. Watch out: high income tax rates, heating costs, and very long winters.
How Maine taxes your retirement income
Social Security: not taxed at all.
Pensions: Pension exclusion of about $10,000 per person (reduced by Social Security received).
401(k) and IRA withdrawals: The pension exclusion covers some 401(k)/IRA income.
The setup: Brackets 5.8%–7.15%.
Property tax & senior breaks
The average effective property tax rate is about 0.98% — roughly $2,940 a year ($245 a month) on a $300,000 home. Your county sets the real number.
Help for seniors: $25,000 homestead exemption; property tax fairness credit for lower-income owners.
Try your own home value in the Property Tax Estimator.
Everyday costs & sales tax
Overall cost of living runs about 13% above the U.S. average. The combined state and average local sales tax is 5.50%.
Weather
January days top out around 31°F and July days around 80°F, with roughly 203 sunny days a year. Watch out for: Blizzards and long, cold winters.
Healthcare
Good care around Portland; the rural north means long drives.
Estate & inheritance taxes
Maine has an estate tax. Estate tax above about a $7.2 million exemption (2026)