Maine taxes capital gains at 7.15%. Combined with federal taxes, your effective rate on a home sale could reach 25.9%.
ME State Rate
7.15%
Top marginal rate
Federal Rate
15%
Most common long-term bracket
Combined Effective
25.9%
On $150K taxable gain (example)
After the $250K/$500K exclusion, here's what a typical seller might owe.
If Maine is where your primary residence is located and you've lived there at least 2 of the last 5 years, you can exclude up to $250K (single) or $500K (married filing jointly) of your capital gain from both federal and state taxes.
Investment and rental properties in Maine don't qualify for the exclusion. You'll owe 7.15% state tax plus federal tax on the full gain, plus 25% depreciation recapture on any depreciation claimed.
In Maine, homes sold in March sell for 23% more than those sold in October (-15%). Timing your sale right can offset a significant portion of your tax bill.
Capital gains tax rates on home sales in Maine and nearby states.
| State | Rate | Tax on $150K Gain | Notes |
|---|---|---|---|
| 0% | $0 | No tax on capital gains (I&D tax repealed 2025) | |
MaineYou | 7.15% | $10,725 | Top marginal rate |
| 9% | $13,500 | 5% + 4% surtax on income > $1M |
Selling in New Hampshire instead of Maine would save $10,725 in state tax on a $150K gain.
Maine taxes capital gains as ordinary income at rates up to 7.15%. The state's high coastal property values can create substantial tax obligations.
The Portland area and coastal communities from Kennebunkport to Bar Harbor have seen strong appreciation, driving gains above the federal exclusion.
Maine does not offer a preferential capital gains rate. All gains are taxed at the standard income rates.
Second home and vacation property sellers face the full rate without the federal exclusion, making tax planning essential for coastal property owners.
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