The Northeastern part of the United States is home to the lovely state of Maine. The state is renowned for its beautiful scenery, seafood, and welcoming locals. You might be wondering if Maine is tax-friendly for retirees if you’re thinking about retiring there. We’ll look at Maine’s tax structure in this post to help you decide if it’s a decent area to retire.
The state income tax in Maine ranges from 5.8% to 7.5%. Although this may seem high in comparison to some other states, it is really lower than many of the northeastern states. Additionally, the state offers retirees a variety of tax breaks and exemptions. Pension income, for instance, is not subject to Maine’s state income tax, nor are Social Security benefits. For qualified retirees, there are also property tax exemptions available.
Sales tax should also be taken into account. The state sales tax in Maine is 5.5%. However, certain local governments in the state have the authority to tack on extra local sales taxes, which might raise the overall sales tax rate. The sales tax rate in Maine is still lower than in several of its surrounding states despite this.
Maine has a somewhat high property tax rate compared to other states. Maine has the seventh-highest property tax rate in the country, according to a WalletHub research. However, as was already indicated, qualifying retirees may qualify for property tax exemptions, which can help defray this expense.
Maine is generally regarded as a tax-friendly state for retirees. The exemptions and deductions for retirees can assist reduce the tax burden even when the state income tax rate is not the lowest. While the property tax rate is high, there are exemptions available for qualified retirees, and the sales tax rate is also comparatively low.
California is the state with the highest sales tax in the union. California has a 7.25% statewide sales tax, but certain towns and counties are allowed to tack on their own municipal taxes, bringing the total sales tax to 10.50% or higher. Mississippi, Tennessee, Mississippi, Rhode Island, and Indiana are additional states with high sales tax rates. You should constantly double-check the sales tax rate in the region you are located in because it’s crucial to remember that rates might vary by city and county.