Property tax relief for seniors in Maine

Property Tax Fairness Credit

This is a refundable credit on your Maine income tax return. It helps people whose property tax or rent is high compared with their income.

Who qualifies (tax year 2025, filed in 2026)

• You lived in Maine for at least part of the year.
• You owned or rented your main home in Maine and paid property tax or rent on it.
• You are not married filing separately.
• Your total income is under the limit:

How much you can get

How it is figured

1. Add up your property tax paid. If you rent, 15% of your rent counts as property tax (take out heat, utilities and furniture first).
2. That amount is capped. If you are 65 or older, the cap is $4,100.
3. Your credit is based on how much that amount is above 4% of your total income, up to the most you can get.

If you do not qualify for this credit, you may still get Maine's smaller Sales Tax Fairness Credit, on the same form.

How to claim it

• File Form 1040ME with Schedule PTFC/STFC for the year you paid the tax or rent.
• You can claim it whether or not you owe Maine income tax. If the credit is more than your tax, Maine sends you the difference.
• If you are in the State Property Tax Deferral Program, the tax the State paid for you counts.
• Forms are on the Maine Revenue Services website. Questions: [email protected].

State Property Tax Deferral Program

The State pays your property tax to your town each year. You do not pay it back until later.

Who qualifies

• Liquid assets are things you could turn into cash within three months: bank accounts, CDs, money market and mutual funds, stocks and bonds, life insurance policies, and lump sums or inheritances. Retirement accounts such as IRAs and 401(k)s do not count.
• You must own and live in the home, and it must have the homestead exemption. Up to 10 acres can be included.
• You cannot be in a town deferral program at the same time. Some liens are allowed if no more than 2 years of taxes are past due.

How it works

• The State pays your homestead property tax and puts a lien on the home for the amount paid plus interest.
• You get a yearly notice of your balance.
• You do not reapply each year once approved.
• The balance is due when you die, sell the home, or stop living there (unless you are away for health reasons). You can leave the program at any time.

How to apply

1. Get the application from Maine Revenue Services or your town office.
2. File it with your local assessor between January 1 and April 1.
3. The assessor checks it and sends it to Maine Revenue Services, which may ask for more information.
4. If you are denied, you can appeal to the State Board of Property Tax Review within 30 days of the notice.

Homestead exemption

• What it does: Takes up to $25,000 off your home's taxable value. Your town adjusts the amount by its local ratio.
• Who qualifies: You are a permanent Maine resident, the home is your permanent home, and you have owned a home in Maine for the 12 months before you apply. Camps and second homes do not qualify. A mobile home on a rented lot may.
• How to apply: File the form with your town by April 1. Late forms count for the next year. You do not need to reapply as long as your ownership and residency stay the same.
• If denied: You can appeal in writing to your local Board of Assessment Review or the County Commissioners.

Common mistakes

• Not filing a Maine tax return. Even if you owe no Maine income tax, you must file Form 1040ME with the schedule to get the Property Tax Fairness Credit.
• Renters skipping the credit. Part of your rent counts as property tax.
• Missing April 1. Both the homestead exemption and the deferral program use this date.
• Thinking the deferral is a gift. It is a loan against your home, with interest.

Free help

• Your town office or assessor: for the homestead exemption and deferral forms.
• Area Agencies on Aging: 1-877-353-3771, then choose your county, for general help for older adults.
• Maine Revenue Services: [email protected] for the Property Tax Fairness Credit.

See all benefits in Maine.

Phone numbers: Free help lines for Maine agencies

Check what you may qualify for