How Maine property tax works and what the homestead saves

How is the tax calculated?

Municipal assessors set the value. By law they record the “nature, amount and value” of each parcel as of April 1, with land valued separately from buildings (§ 708). Improved property is valued at its highest and best use, using three approaches: cost, income and sales comparison (§ 701-A).

The bill follows a simple formula:

(assessed value − exemptions) × mill rate ÷ 1,000

A “mill” is $1 of tax per $1,000 of taxable value. Each municipality sets its own rate, so two homes with the same value in different towns pay different bills. The rate and the due dates are posted by your town or city. In the City of Portland, the assessor’s database says its assessments represent 100% of market value as of April 1, 2025 (City of Portland). For Portland’s current rate and payment dates, use the city’s assessor and tax collector pages; see the Portland guide.

Maine towns choose their own tax year and due dates by vote, and they may set the interest rate for late payment up to a ceiling the State Treasurer posts each year (§ 505).

What does the homestead exemption save?

Maine Revenue Services lists the conditions: you must have owned a homestead in Maine for at least 12 months, and make the home you occupy on April 1 your permanent residence. A 2025 law (P.L. 2025, c. 650, Part M) repealed the old section effective with tax years beginning April 1, 2027 and replaced it with § 683-A, which keeps the $25,000 figure. The veteran amounts in § 683-A(2) also differ from the older page, so confirm yours with the assessor.

The assessor multiplies the exemption by the municipality’s certified assessment ratio (§ 683-A(5)). In a town assessing at 100% of market value, the full $25,000 comes off. If title is held jointly, the exemption can be shared among owners who live there, but it does not exceed the limit.

You apply once to the local assessor. A first-time claim and proof of entitlement are due on or before April 1 of the year the taxes are based on (§ 684). Because the 12-month ownership rule counts back from that date, a buyer generally cannot claim the exemption for the first tax year; ask the assessor how your closing date applies.

Example: the effect of the exemption

This is an illustration with a round rate, not a Portland figure. Assume a home assessed at $500,000, a ratio of 100%, and a rate of 10 mills ($10 per $1,000).

The savings equal the exemption times the mill rate, so they grow with the rate.

Who pays when a house is sold?

Maine Revenue Services publishes a notice for buyers and sellers: under Maine law, payment of property taxes is the responsibility of the person who owns the property on April 1. Buyer and seller may agree to divide the taxes between them. If any part is unpaid, the lien is filed in the name of the April 1 owner, and the municipality may foreclose on the property even after a sale unless the taxes are paid. The notice says these problems can be avoided by setting funds aside in escrow at closing. See closing costs in Maine and escrow accounts.

How do you challenge an assessment?

1. Apply for an abatement with the assessors in writing, within 185 days from commitment (the date the tax list goes to the collector), stating your grounds (§ 841(1)). Assessors can also correct errors on their own within one year.
2. Appeal to the board of assessment review, if the municipality has one, within 60 days after notice of the decision or after the application is deemed denied (§ 843(1)).
3. Appeal to Superior Court under Rule 80B of the Maine Rules of Civil Procedure. Different rules apply to nonresidential property with an equalized valuation of $1,000,000 or more.

Separately, municipal officers may abate tax on a primary residence for hardship or poverty, on written application within three years of commitment (§ 841(2)). Municipalities may also adopt a deferral program for owners aged 70 or older who lived in the home for 10 years and have household income at or under 300% of the federal poverty level (§ 6271). It exists only where your town has adopted it.

For assessment values and neighbors’ sales, start with your assessor’s public database. See also home prices in Maine.