Enough

Retire in Maine: 2026 Tax & Cost of Living Guide

Above-average income tax and state estate tax ($6.8M exemption). $30K pension exclusion moderately offsets the tax drag.

State income tax

Progressive — top rate 7.15%

Social Security

Not taxed

Estate tax

Yes

Property tax

1.28%

How Maine Taxes Retirement Income

Social Security
Not taxed
Public pensions (state/federal)
Taxed
Private pensions
Taxed
401(k) / IRA withdrawals
Taxed

Exemption / exclusion

$30,000 pension exemption per taxpayer

What Would You Pay in State Income Tax?

Rough estimates at the top marginal rate (actual effective rate will be lower for most retirees due to brackets, exemptions, and standard deduction):

Annual Retirement IncomeEstimated State TaxEffective Rate
$50,000$3,5757.1%
$100,000$7,1507.1%
$200,000$14,3007.1%

Estate & Inheritance Tax

State Estate Tax

Exemption: $6,800,000 · Top rate: 12%

Federal estate tax exemption is $13.61M (2024) — Maine's lower threshold means more estates are subject to state tax than federal.

We don't have detailed cost-of-living data for a city in Maine yet. See our city guides for 300+ other cities worldwide, or compare Maine against other US states below.

States With No Income Tax

Alaska

Florida

Nevada

New Hampshire

South Dakota

Tennessee

Compare Against Other States

All 50 US States + DC

Ranked by tax-friendliness for retirees. Grouped by income-tax type.

→

Retirement Methodology Calculators

How much do the big names actually say you need? See each guru's assumed return and withdrawal rate, side by side with academic defaults.

Dave Ramsey

12% / 8%

Bill Bengen

4% rule

Bogleheads

7% / 4%

FIRE Calculator

See how much you need to retire — in Maine or anywhere else.

Safe Withdrawal Rate

Model your retirement paycheck with real historical data.

Tax rates and programs are subject to change. Data is current for 2024–2025. Always consult a qualified tax professional before making relocation decisions.