Maine has a graduated state individual income tax, with rates ranging from 5.80 percent to 9.15 percent following the enactment of a two percentage point increase to the top rate during the 2026 legislative session. Maine has a graduated corporate income tax, with a top rate of 8.93 percent, a 5.50 percent state sales tax rate, and an average combined state and local sales tax rate of 5.50 percent. Maine has a 0.98 percent effective property tax rate on owner-occupied housing value. Maine has an estate tax. Maine’s gas tax is 31.45 cents per gallon, and its cigarette excise tax is $3.50 per pack of 20 cigarettes.
Maine raises tax revenue primarily through property taxes (35.9 percent of total state and local tax revenue), individual income taxes (24.6 percent), and general sales taxes (22.5 percent). Maine collects $7,220 in state and local tax collections per capita, carries $6,270 in state and local debt per capita, and has a 91 percent funded ratio of public pension plans. Maine’s tax system ranks 26th overall on the 2026 State Tax Competitiveness Index.
Each state’s tax code is a multifaceted system with many moving parts, and Maine is no exception. Use the tabs below to compare Maine taxes with other states and to see how Maine raises tax revenue. You can also browse our tax maps, which are compiled from our annual publication, Facts & Figures 2026: How Does Your State Compare?
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The State Tax Competitiveness Index enables policymakers, taxpayers, and business leaders to gauge how their states’ tax systems compare. While there are many ways to show how much state governments collect in taxes, the Index evaluates how well states structure their tax systems and provides a road map for improvement.
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Facts & Figures serves as a one-stop state tax data resource that compares all 50 states on over 40 measures of tax rates, collections, burdens, and more.
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Individual income taxes are a major source of state government revenue, accounting for more than a third of state tax collections. How do income taxes compare in your state?
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Forty-four states levy a corporate income tax, with top rates ranging from a 2 percent flat rate in North Carolina to an 11.5 percent top marginal rate in New Jersey. Four states—Georgia, Nebraska, North Carolina, and Pennsylvania—reduced their corporate income tax rates effective January 1, 2026.
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Retail sales taxes are an essential part of most states’ revenue toolkits, responsible for nearly a quarter of combined state and local tax collections.
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Property taxes are the primary tool for financing local governments. While no taxpayers in high-tax jurisdictions will be celebrating their yearly payments, property taxes are largely rooted in the benefit principle of taxation: the people paying the property tax bills are most often the ones benefiting from the services.
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California pumps out the highest state gas tax rate of 77.9 cents per gallon (cpg), followed by Illinois (66.5 cpg) and Pennsylvania (62.2 cpg).
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However well-intended they may be, sales tax holidays remain the same as they always have been—ineffective and inefficient.
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Compare the latest 2023 sales tax rates as of July 1st. Sales tax rate differentials can induce consumers to shop across borders or buy products online.
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Taxes are the single most expensive ingredient in beer, costing more than the labor and raw materials combined.
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Of all alcoholic beverages subject to taxation, stiff drinks—and all distilled spirits—face the stiffest tax rates. Like many excise taxes, the treatment of distilled spirits varies widely across the states.
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States are in a better position to attract business investment when they maintain competitive real property tax rates and avoid harmful taxes on tangible personal property, intangible property, wealth, and asset transfers.
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An ideal sales tax applies to a broad base of final consumer goods and services, with few exemptions, and is levied at a low rate.
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Individual income tax rates can influence location decision-making, especially in an era of enhanced mobility, where it is easier for individuals to move without jeopardizing their current job, or without limiting the scope of their search for a new one.
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Recreational marijuana taxation is one of the hottest policy issues in the U.S. Currently, 21 states have implemented legislation to legalize and tax recreational marijuana sales.
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