The Maine Homestead Exemption: Tax Relief for Maine Homeowners

The Maine Homestead Exemption may lower your property tax bill. It makes it so the town won't count $20,000 of value of your home for property tax purposes. You can qualify if you have owned your home in Maine for at least 12 months.  It doesn't matter if you sold one home and moved to another.  You just have to show you owned a home for the 12 month period.

The application is quick and easy. Answer a few questions about your home and how long you have lived there. Then send this application to your town officials by April 1st. If you apply after April 1st the exemption would apply for the next tax year. That's all you have to do. Apply once and you should not have to apply again unless you move. When your town mails your tax bill, $20,000 of your home's value will be exempt from property taxes. 

The money you save will depend upon the tax rate for your town. Property taxes are based on the tax value of your home. If you are found eligible, the town will reduce your home's tax value by $20,000 before applying the tax rate.

Example:

  • Jane owns a home in Maine.
  • Her town’s property tax (mill rate) is $10 per $1,000 of home value.
  • Meaning the tax rate is 1%
  • The town values her home at $110,000.
  • Without the exemption Jane owes $1,100 in property taxes.

If Jane claims the exemption, the town will subtract $20,000 from Jane's home value before figuring the tax. The new tax value is just $90,000.  Now Jane will owe $900 in property tax. Jane saves $200 a year with the exemption.

Active duty military personnel may get this exemption if they both:

  • Own a home in Maine and
  • Are permanently stationed in Maine.

If you serve in the military, you need to fill out the application.  You must also get a letter from your superior saying you are stationed in Maine.

Members of the National Guard and Army Reserves are not eligible, unless they are Maine residents.

We post an interactive version of the State's form that you can fill out online, then print.

Or you can go to the State of Maine website to get a blank form.

Once you have completed the form, file it with your town office or city property tax department.  Find local government contact information here.

Updated  August 2017
PTLA #622

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