Is Maine a tax-friendly state?

Maine sits in the middle of the pack on taxes. Property taxes are moderate statewide, the state has a progressive income tax, and the state sales tax applies to most goods (groceries are exempt). Compared to nearby New Hampshire, which has no state income tax, Maine looks heavier on tax. Compared to Massachusetts, the two are roughly similar overall. Retirees benefit from a Social Security exemption and a partial pension exemption, which softens the tax load on fixed incomes. For how taxes fold into Maine’s overall monthly cost picture, see our Maine cost of living page.