Maine Tax Exemptions Summary
Maine offers several property tax exemptions for qualifying individuals and businesses. All applications must be filed with your local municipal assessor by April 1 unless otherwise noted.
Property Tax Exemptions
- Maine Homestead Property Tax Exemption
- Veteran Property Tax Exemption
- Veteran Widow/Widower/Child/Parent Exemption
- Blind Persons Exemption
- Current Use Programs
- Renewable Energy / Solar Property Tax Exemption
- Important Notes
Business Property Tax Exemptions
Property Tax Exemptions
Maine Homestead Property Tax Exemption
Reference: 36 M.R.S. §§ 681-689
Who Qualifies:
- Permanent Maine residents who have owned a homestead for 12 consecutive months ending April 1
- Property must be your permanent residence (not summer camps, vacation homes, or second residences)
- Military personnel on active duty stationed in Maine are considered permanent residents
Requirements:
- File Maine resident income tax return, OR
- Driver’s license address matches homestead location, OR
- Hunting/fishing license shows same address, OR
- Pay motor vehicle excise tax in municipality, OR
- Registered voter in municipality
Key Details:
- Must declare this as your only homestead exemption
- Property held in revocable living trust qualifies if you’re the beneficiary
- Cooperative housing corporations can also apply
Additional Resources and Information
(Back to the top)Veteran Property Tax Exemption
Reference: 36 M.R.S. § 653
Who Qualifies: Veterans who meet ONE of these criteria:
- Age 62+ (or receiving non-service-connected total disability pension) AND served during recognized war period
- Age 62+ (or receiving non-service-connected total disability pension) AND received Armed Forces Expeditionary Medal
- Receive service-related total disability pension from U.S. Government
Recognized War Periods:
- World War I: April 6, 1917 - November 11, 1918 (Russia service until March 31, 1920)
- World War II: December 7, 1941 - December 31, 1946
- Korean Conflict: June 27, 1950 - January 31, 1955
- Vietnam Era: February 28, 1961 - May 7, 1975
- Persian Gulf War: August 2, 1990 - ongoing (includes Operation Enduring Freedom, Iraqi Freedom, New Dawn)
Other Recognized Service Periods:
- February 28, 1961 - August 4, 1964
- August 24, 1982 - July 31, 1984
- December 20, 1989 - January 31, 1990
Exemption Amounts:
- $6,000 for post-WWI veterans
- $7,000 for WWI veterans
- $50,000 for paraplegic veterans (who received U.S. Government grant for specially adapted housing)
Additional Resources and Information
(Back to the top)Veteran Widow/Widower/Child/Parent Exemption
Reference: 36 M.R.S. § 653
Who Qualifies:
- Unremarried widowed spouse of deceased veteran
- Minor child of deceased veteran
- Unremarried widowed parent of deceased veteran
- Must receive compensation from U.S. Government in one of these capacities
Requirements:
- Veteran’s death was service-connected, OR
- Veteran received 100% disability compensation at time of death, OR
- Veteran received paraplegic housing grant
Same exemption amounts as veteran exemption above
Additional Resources and Information
(Back to the top)Blind Persons Exemption
Reference: 36 M.R.S.A. § 654
Who Qualifies:
- Individuals determined to be blind by licensed Doctor of Medicine, Doctor of Osteopathy, or Doctor of Optometry
Exemption Amount: $4,000
Required Documentation: Medical certification of blindness
Additional Resources and Information
(Back to the top)Current Use Programs
The State of Maine has four “current use” programs that offer the property owner a reduction in assessed value: Farmland, Open Space, Tree Growth, and Working Waterfront. The programs establish valuation of property at its current use, rather than at market value. This generally results in a decrease in the total property taxes owed on enrolled land.
All four programs are available to property owners through an application process with the local municipality. Applications must be filed on or before April 1 of the year the reduced valuation is first requested.
Property must meet certain criteria to qualify for each program and any future change in the use of the land will cause disqualification resulting in a penalty.
Additional Resources and Information
(Back to the top)Renewable Energy / Solar Equipment Exemption
Reference: 36 M.R.S. §§ 655(1)(U) & 656(1)(K)
Who Qualifies:
- Owners of renewable energy systems (typically solar)
- All power must be used on-site and/or subject to utility bill credit
Required Information:
- System specifications (DC/AC watts, number of panels, inverter details)
- Cost information (gross cost, net cost after tax credits)
- Annual generation capacity
- Installation and warranty details
- Connection date and technical specifications
Property Types: Both residential and commercial properties qualify
Additional Resources and Information
(Back to the top)Important Notes
General Filing Requirements
- Most applications due April 1 (BETE due May 1)
- File with your local municipal assessor
- Applications are confidential
- Required documentation must be attached
Common Documentation
- Veterans: DD Form 214, VA benefit summary letter, or VA Form 20-5455
- Blind Exemption: Medical certification
- Renewable Energy: Installation and technical specifications
- Homestead: Proof of Maine residency
Penalties
- False information on applications may result in criminal charges
- Fraudulent conveyances to obtain exemptions subject to fines of $100 minimum or 2x taxes evaded, whichever is greater
Assessment Impact
- Exemption amounts are multiplied by the municipality’s certified assessment ratio
- Local assessors determine final assessed value of exemptions
Business Property Tax Exemptions
Business Equipment Tax Exemption (BETE)
Reference: 36 M.R.S. §§ 691-700-B
Who Qualifies:
- Businesses with eligible equipment first placed in service in Maine after April 1, 2007
- 100% exemption for qualifying business equipment
Filing Deadline: May 1 (with automatic extension from April 1)
Eligible Equipment:
- Tangible personal property used for business purposes
- Depreciable under Internal Revenue Code (or would be if not fully depreciated)
- Repair parts, replacement parts, additions, and accessories
Excluded Property:
- Office furniture and general lighting
- Property owned by utilities, telecommunications companies, cable TV companies
- Property at retail sales facilities used primarily for retail sales
- Gambling machines
Key Requirements:
- Must file annually even if no changes
- Equipment must be located in Maine
- Detailed description and valuation required