How does Maine’s tax code compare? Maine has a graduated state individual income tax, with rates ranging from 5.80 percent to 7.15 percent. Maine has a graduated corporate income tax, with rates ranging from 3.50 percent to 8.93 percent. Maine also has a 5.50 percent state sales tax rate and does not have local sales taxes. Maine has a 0.94 percent effective property tax rate on owner-occupied housing value.
Maine has an estate tax. Maine has a 31.4 cents per gallon gas tax rate and a $2.00 cigarette excise tax rate (per pack of 20 cigarettes). The State of Maine collects $7,216 in state and local tax collections per capita. Maine has $5,550 in state and local debt per capita and an 88 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. The first step toward understanding Maine’s tax code is knowing the basics. How does Maine collect tax revenue? Click the tabs below to learn more! You can also explore our state tax maps, which are compiled from our annual publication, Facts & Figures 2025: 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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