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.
2 min read
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?
9 min read
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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Property taxes are the primary tool for financing local government and generating state-level revenue in some states as well.
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The FDA’s proposal to ban flavored cigars would carry significant revenue implications for many state governments.
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While many factors influence business location and investment decisions, sales taxes are something within policymakers’ control that can have immediate impacts.
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Among the 46 states that held legislative sessions this year, structural state tax reform and temporary tax relief measures were recurring themes.
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If the policy goal of taxing cigarettes is to encourage cessation, vapor taxation must be considered a part of that policy design.
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The Kansas experience is so infamous that “what about Kansas?” is almost guaranteed to be a question—sometimes as a retort, but often a genuine expression of concern—any time any state explores tax relief. But what about the other two dozen states that have cut their income taxes since then?
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Which states have the highest property taxes in 2022? See how your state compares in property taxes across the United States
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The sales tax is too important a part of states’ revenue toolkits to be permitted further erosion, making sales tax modernization a vital project of the 2020s.
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