Maine Property Tax News: Credits, Exemptions, and Deferrals

Maine property tax relief programs fall into a handful of distinct tools: a refundable income tax credit, a value-based homestead exemption, a full deferral of your annual bill, an optional municipal deferral for seniors, and targeted exemptions for veterans and legally blind residents. Recent legislation reshaped the landscape by repealing the short-lived senior tax freeze and expanding the programs that remain, so the eligibility numbers below reflect what actually applies today.

Property Tax Fairness Credit

The Property Tax Fairness Credit under Title 36, § 5219-KK is the broadest relief tool available and the one most Maine homeowners and renters should look at first.¹ It’s refundable, meaning you can receive the credit even if it exceeds your Maine income tax liability.

For the 2025 tax year (the return you file in 2026), the maximum credit is $1,000 if you’re under 65 and $2,000 if you’re 65 or older. Veterans rated 100 percent permanently and totally disabled by the U.S. Department of Veterans Affairs qualify for higher limits: up to $2,000 under 65 and $4,000 at 65 or older.²

Eligibility phases out at these 2025 income ceilings:

Single filers: $63,750
Head of household: $82,500, rising to $101,250 with more than one qualifying dependent
Married filing jointly: $82,500, rising to $101,250 with one or more qualifying dependents
Age 65 or older, any status: $102,500

Married couples filing separately can’t claim the credit at all.²

You claim the credit by filing Schedule PTFC with your Maine Form 1040ME. The schedule asks for the property tax billed on your home, or for renters, the total rent paid during the year. Maine treats 15 percent of your annual rent as the property tax equivalent, so tenants benefit too.¹

Homestead Exemption

The Homestead Exemption reduces the taxable value of your primary residence by $25,000. That total combines a $10,000 base exemption with an additional $15,000 that has applied to property tax years beginning on or after April 1, 2020.³ Actual savings depend on your municipality’s mill rate.

To qualify, you must be a permanent Maine resident and have owned a homestead in the state for at least 12 consecutive months before applying.³ The property must be your primary residence. File the application with your local municipal assessor by April 1. Forms submitted after that date apply to the following tax year.⁴ Once approved, the exemption renews automatically each year you remain eligible.

State Property Tax Deferral Program

The State Property Tax Deferral Program under Title 36, §§ 6250–6266 lets eligible homeowners postpone paying their property taxes entirely. The state pays the bill on your behalf, and the deferred amount becomes a lien on your property that comes due when you sell, move out, or die. This is a postponement, not forgiveness, and deferred amounts accrue interest. For retirees with limited income and significant home equity, it prevents a forced sale.

For applications filed after January 1, 2024, the legislature roughly doubled the eligibility thresholds:

You must be at least 65 years old, or permanently unable to work due to a disability, as of April 1 of the year you file.
Combined household income must be less than $80,000 for all owners.
Liquid assets must be less than $100,000 for a sole owner, or less than $150,000 for properties with multiple owners.

The old thresholds ($40,000 income, $50,000/$75,000 liquid assets) still appear in the statute as the baseline, but the higher limits apply to anyone filing after January 1, 2024.⁵

File your application with the local municipal assessor between January 1 and April 1 of the first year you want to defer.⁵ The property must be your homestead, and all owners must meet the eligibility criteria.

Municipal Partial Deferral for Seniors

Separately, Maine law allows individual municipalities to create their own partial deferral programs for senior residents under Title 36, § 6235. A local program stabilizes your property tax at the amount assessed as of the most recent April 1 before your application. Any increase in later years gets deferred rather than billed immediately.⁶

Each town sets its own eligibility rules by ordinance, including minimum age, residency period, and income floor. One statewide rule: you can’t participate in a municipal partial deferral if you’re already enrolled in the state-level deferral program under Chapter 908.⁶

Deferred taxes accrue interest at half a percentage point above the municipality’s standard delinquent-tax rate, unless the town sets a lower rate by ordinance. All deferred taxes and accrued interest come due when the property is sold, the homeowner dies, or the home stops being the owner’s primary residence.⁶ Not every municipality has adopted this program, so check with your town office first.

Exemptions for Veterans and Legally Blind Residents

Two targeted exemptions reduce the assessed value of your home directly, and both stack with the Homestead Exemption.

Veterans Exemption

Veterans who served during a federally recognized war period qualify for a $6,000 reduction in assessed value once they’ve reached age 62, or at any age if they’re receiving federal pension or compensation for total disability. Veterans with a service-connected disability that occurred during active duty also qualify for the $6,000 exemption regardless of age, provided they receive federal compensation for total disability.⁷ Bring your military discharge documentation or a Department of Veterans Affairs certification to your local assessor.

Blind Residents Exemption

Residents who are legally blind qualify for a $4,000 reduction in assessed value under Title 36, § 654-A. A licensed physician or optometrist must certify the legal blindness, and that documentation goes to your local assessor.⁸

The Senior Property Tax Stabilization Program No Longer Exists

If you’re searching for the senior tax freeze that briefly let older homeowners lock in their prior year’s bill, it’s gone. The Senior Property Tax Stabilization Program, enacted in August 2022 as LD 290, was active for only the 2023 tax year. The Maine Legislature repealed it on July 6, 2023, effective October 11, 2023. The relevant sections of Title 36, Chapter 907-A are marked as repealed.⁹ In its place, lawmakers expanded the deferral program and increased the Property Tax Fairness Credit described above.

Federal SALT Deduction on Top of Maine Relief

If you itemize on your federal return, you can deduct Maine property taxes as part of the state and local tax (SALT) deduction.¹⁰ For the 2026 tax year, the SALT cap is $40,400 for most filers and $20,200 for married couples filing separately, after the One Big Beautiful Bill raised the limit from the prior $10,000 ceiling and built in annual 1 percent increases through 2029.

The cap combines property taxes, state income taxes, and other deductible local taxes into a single limit. For many Maine homeowners with moderate home values, the full property tax amount fits under the cap; if you also pay significant Maine income tax, the combined total may exceed it. The deduction only helps if your total itemized deductions exceed the standard deduction, so run the numbers both ways before filing.

1
Maine State Legislature. Maine Code Title 36 5219-KK – Property Tax Fairness Credit for Tax Years Beginning on or After January 1, 2014
2
Maine Revenue Services. Schedule PTFC – Property Tax Fairness Credit
3
Maine Legislature. Maine Code Title 36 Section 683 – Exemption of Homesteads
4
Maine Revenue Services. Homestead Exemption Program FAQ
5
Maine State Legislature. Maine Code Title 36 6251 – Deferral of Tax on Homestead; Joint Election
6
Maine State Legislature. Maine Code Title 36 6235 – Municipal Authority; Partial Deferral of Property Taxes for Seniors
7
Maine Legislature. Maine Code Title 36 653 – Estates of Veterans
8
Maine State Legislature. Maine Revised Statutes Title 36 654-A
9
Maine State Legislature. Maine Code Title 36 Chapter 907-A – Municipal Property Tax Assistance
10
Internal Revenue Service. New and Enhanced Deductions for Individuals