Maine Estate Tax: Everything You Need to Know - SmartAsset

What You Need to Know About the Maine Estate Tax

The estate tax rates in Maine range from 8% to 12%. The tax applies on estates worth more than $6.01 million in 2022 and $6.41 million in 2023. This guide has the information you need to know if you’re starting to think about estate planning in Maine. If you’re planning your estate or dealing with financial planning issues in general, it can help to speak with a financial advisor. SmartAsset’s financial advisor matching tool can pair you with an advisor in your area for free.

Maine Estate Tax Exemption

The estate tax threshold for Maine is $6.01 million in 2022 and $6.41 million in 2023. If your estate is worth less than that, Maine won’t charge estate tax on it. If it is worth more than that, you’ll owe a percentage of the estate to the government based on a series of progressive rates.

Maine Estate Tax Rate

The estate tax rate for Maine is graduated. The table below shows all the tax rates and when they apply.

Find your taxable estate bracket in the chart below. The second column shows what is owed on money below the bracket. Then figure out how much higher your taxable wealth is than the bottom of your bracket. Multiply that number by the marginal rate, add the answer to the base rate and you’ll know the estate tax burden.

Here’s an example. Let’s say your total estate is worth $10.81 million. Subtracting the exemption of $6.41 million, leaves a taxable estate of $4.40 million. Next, find where that number falls on the chart. The base taxes paid for that bracket is $240,000. The bottom of the threshold is $3 million, so we subtract that from $4.40 million and get $1.40 million. That amount multiplied by the marginal rate of 10% is $140,000. When we add that number to the base tax, we get a total Maine estate tax of $380,000 on a $10.81 million estate.

MAINE ESTATE TAX RATES

Taxable Estate*	Base Taxes Paid	Marginal Rate	Rate Threshold**
$0 – $3 million	$0	8%	$0
$3 million -$6 million	$240,000	10%	$3 million
$6 million and up	$540,000	12%	$6 million

*The taxable estate is the total above the exemption of $6.41 million.
**The rate threshold is the point at which the marginal estate tax rate goes into effect.

What Is the Estate Tax?

The estate tax is a levied on an estate after a person has died but before the money has been passed on to their heirs. It is sometimes colloquially referred to as the “death tax.”

The inheritance tax is a different tax. It is levied on a person’s heirs after they have already received their inheritance.

Maine Inheritance Tax

There is no inheritance tax in Maine. If you get an inheritance from someone out of state, though, the local laws of that state may apply to you. In Pennsylvania, for example, the inheritance tax applies to anyone receiving an inheritance from a person who dies in the state, even if they live out of state.

Maine Gift Tax

There is no gift tax in Maine. The federal gift tax exemption is $16,000 per recipient per year for 2022 and $17,000 in 2023. Any gift to one person in a single year will count against your lifetime exemption of $12.92 million.

Maine Estate Tax for Married Couples

The exemption is not portable between spouses. This means that only $6.41 million can be protected after both spouses die.

Federal Estate Tax

There is also a federal estate tax you may be subject to, with an exemption of $12.06 million in 2022 and $12.92 million in 2023. The federal exemption is portable between spouses, meaning that with some legal steps, up to $25.84 million can be protected by a married couple.

If an estate exceeds that amount, the tax rates range from 18% to 40%. A full chart of federal estate tax rates is below. You can use the same method described in the Maine Estate Tax Rate section to figure out your federal estate tax burden.

FEDERAL ESTATE TAX RATES

Taxable Estate*	Base Taxes Paid	Marginal Rate	Rate Threshold**
$1 – $10,000	$0	18%	$1
$10,000 – $20,000	$1,800	20%	$10,000
$20,000 – $40,000	$3,800	22%	$20,000
$40,000 – $60,000	$8,200	24%	$40,000
$60,000 – $80,000	$13,000	26%	$60,000
$80,000 – $100,000	$18,200	28%	$80,000
$100,000 – $150,000	$23,800	30%	$100,000
$150,000 – $250,000	$38,800	32%	$150,000
$250,000 – $500,000	$70,800	34%	$250,000
$500,000 – $750,000	$155,800	37%	$500,000
$750,000 – $1 million	$248,300	39%	$750,000
Over $1 million	$345,800	40%	$1 million

*The taxable estate is the total above the exemption of $12.92 million.
**The rate threshold is the point at which the marginal estate tax rate kicks in.

Overall Maine Tax Picture

The income tax rates in Maine range from 5.8% to 7.15%. You can use our Maine paycheck calculator to figure out how much your take home pay in the Pine Tree State will be. Social Security is not taxed, but pensions and retirement plans are both partially taxed. Capital gains are taxed as regular income.

The general sales tax is 5.5% and there are no local sales taxes, meaning 5.5% is the highest sales tax rate you’ll encounter. The average effective property tax rate in Maine is 1.09%.

Resources for Financial Planning

Estate planning, or any type of financial planning, is hard work. It can make sense to get professional help in the form of a financial advisor. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Social Security is just one part of a succesful retirement plan, but it is still important to know just how big your government check will be when you retire. This Social Security calculator can help you figure that out.