ME · #42 by population

Buying a home in Maine

Costs and rules that are specific to Maine. Main city: Portland.

In short

Maine taxes property sales through its real estate transfer tax, does not require an attorney at closing and requires a seller disclosure form. It allows both court and out-of-court foreclosure and is not a community property state.

Calculate for Maine

If you buy

Maine state transfer tax

Real estate transfer tax (36 M.R.S. 4641-A): $2.20 per $500 of value or fraction of $500; plus $3.80 per $500 on value above $1,000,000 (transfers on or after November 1, 2025).

Price$341,900
State transfer taxnot computed
Who paysShared by buyer and seller

Default price: the Maine median value of owner-occupied homes, $341,900 (Census ACS 2024). Not computed: Base tax = $2.20 x number of $500 units (fraction rounds up) on the whole price. Above $1,000,000, add $3.80 per $500 unit on the value above $1,000,000. Example: $1,200,000 gives 2,400 x $2.20 + 400 x $3.80 = $6,800. Under $1,000,000 the tax is units x $2.20. Who pays: The law imposes one half on the seller (grantor) and one half on the buyer (grantee); the sources do not address private agreements to reallocate it. Not included: county and city transfer taxes, recording fees, title insurance and lender charges. Maine transfer tax guide · all 50 states.

If you sell

Capital gain and the federal tax on it

Same federal rule in every state: Section 121 of the Internal Revenue Code excludes up to $250,000 of gain on a main home ($500,000 for a married couple filing jointly).

Capital gain$350,000
Section 121 exclusion$250,000 (limit $250,000)
Taxable gain$100,000
Type of gainLong-term (owned over 1 year), 15% chosen
Federal tax on the gain$15,000

Section 121 excludes $250,000; the rest is taxable.

Gain = sale price minus your adjusted basis (purchase price, buying costs and improvements); selling expenses reduce it (IRS Publication 523). Long-term rates for sales in 2026, by taxable income including the gain (IRS Rev. Proc. 2025-32, section 4.03): 0% up to $49,450 single or $98,900 married filing jointly, 15% up to $545,500 single or $613,700 jointly, 20% above. Not included: Maine state income tax on the gain (not computed), the net investment income tax, depreciation recapture on a rental or home office, and the reduced exclusion for an early sale. Agent commissions are negotiated and never set by law. Capital gains on a home sale.

Maine in short

Is there a real estate transfer tax in Maine?

Maine charges a real estate transfer tax of $2.20 for each $500 of value, or fraction of $500, with the buyer and the seller each paying half by law. For transfers on or after November 1, 2025, value above $1 million carries an extra $3.80 per $500.

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What closing costs does Maine law set?

Maine has no official typical closing-cost total. The transfer tax is $2.20 per $500 of price, split half and half between buyer and seller by law, and registries charge $35 per recorded instrument.

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How is property tax calculated in Maine?

Maine has no single state rate for home property tax: each town or city values property as of April 1 and sets its own rate.

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What is the deadline to appeal a property tax assessment in Maine?

In Maine, apply in writing to the municipal assessors for an abatement within 185 days from commitment, and if denied, appeal to the board of assessment review within 60 days after notice of the decision, then to Superior Court under Rule 80B.

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Do you need a real estate attorney to close in Maine?

The Maine statutes read do not require a buyer or seller to hire an attorney to close a home sale, though practicing law without admission is a Class E crime (4 M.R.S. 807).

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What must a home seller disclose in Maine?

A Maine seller of a home with one to four residential units must give the buyer a written property disclosure statement no later than the offer (33 M.R.S. 173, 174). If it arrives after the offer, the buyer has 72 hours to withdraw without penalty.

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How does foreclosure work in Maine?

Maine foreclosures normally go through a court case, after a lender sends a notice giving the owner at least 35 days to cure. After a judgment of foreclosure the owner has 90 days to redeem on most mortgages, and owner-occupants can request court mediation.

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What first-time home buyer programs does Maine offer?

In Maine, MaineHousing sells low fixed-rate mortgages through approved lenders: the First Home Loan was 5.950% (zero points) on October 1, 2026, its Advantage option adds $5,000 toward closing and the First Generation option adds $10,000.

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How much tax when you sell a home in Maine?

The federal rule is the same in Maine as in every state: if you owned and lived in the home as your main home for at least 2 of the last 5 years, the first $250,000 of gain is excluded, $500,000 for a married couple filing jointly (Section 121, IRS Publication 523). Bought $400,000, sold $750,000: a single owner has $100,000 of taxable gain, $15,000 of federal tax at the 15% long-term rate; a couple filing jointly owes nothing. Maine income tax on the gain is not computed here.

Capital gains on a home sale

Maine guides

Portland

Buying a home in Portland, Maine

Professionals in Maine

All states · Federal guides