Maine Relocation Services

Local Tax Rates 

Local government in Maine is primarily supported by local property taxes. Until the early 1950s, the property tax was the only major tax in Maine.

In 1953, the sales tax on retail transactions was enacted, and in 1969, the state´s personal income tax was adopted.

Over the last 50 years, neither the sales nor the income tax has come close to generating the governmental revenues generated by the property tax.

During the decade after the economic recession of the late 1980s, the state's over-reliance on the property tax became even more pronounced. In 1997, 44% of the total revenue raised by the state´s three major tax systems was generated by the property tax. The personal and corporate income tax generated 30% of that total, and the sales tax generated 26%.

This misalignment of burden among the three major taxes was partially addressed by the Legislature in 1998 with the enactment of the property tax Homestead Exemption.

Property Tax Rates - Cumberland County

Today, property taxes in Maine generate approximately $1.8 billion a year to fund local government services.

Both real (land and buildings) and personal property (tangible goods) are subject to taxation, unless they are exempted by law or subject to another form of taxation, such as the excise tax for motor vehicles and boats.

Since home furnishings are largely exempt from personal property taxes, the property tax bill for most Maine homeowners is based on the value of the land, the house, and the outbuildings.