Is Maine a tax-friendly state?

Maine is middling on tax-friendliness, not especially friendly or unfriendly. Income tax is progressive at 5.8, 6.75, and 7.15 percent across three brackets, with the top rate kicking in around $61,600 single ($123,200 married). Sales tax is 5.5 percent with groceries exempt, well below the high-tax northeast average. Property tax averages roughly 1.24 percent of assessed value annually, broadly mid-pack nationally. Social Security income is not taxed by the state. Pension income is partially exempt up to roughly $30,000 of qualified retirement income per recipient. Capital gains are taxed as ordinary income. Compared with tax havens like Florida or Tennessee (no state income tax), Maine is meaningfully less tax-friendly for high earners. Compared with high-tax neighbours like New York or New Jersey, Maine is friendlier across the board. For the full cost picture, see our Maine cost of living page.