The Maine Homestead Exemption: Tax Relief for Maine Homeowners

Introduction

The Maine Homestead Exemption may lower your property tax bill. It makes it so the town won't count $25,000 of value of your home for property tax purposes. You can qualify if:

  • You have owned a 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 in Maine for the 12 month period.
  • The home is your primary residence. It cannot be a vacation home or second home.
  • You apply for the Homestead Exemption by April 1st. 

AnchorHow to apply

The application is quick and easy. The State of Maine posts this blank form you can fill in to apply for the Homestead Exemption.

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 will 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, $25,000 of your home's value will be exempt from property taxes. 

How does it work?

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 $25,000 before applying the tax rate.

Example:

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

If Carla claims the exemption, the town will subtract $25,000 from Carla's home value before figuring the tax. The new tax value is just $85,000.  Now Carla will owe $850 in property tax. Carla saves $250 a year with the exemption.

What if I'm in the military?

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.

Updated August, 2022
PTLA #622