Maine Senior Tax Relief Programs
The State of Maine provides a measure of property tax relief through different programs to qualified individuals. While some are applied at the local level (See Cape Elizabeth Senior Tax Relief Program), others may applied for through the Income Tax Division. Below is a list of programs for qualifying seniors.
The Property Tax Fairness Credit was recently increased during the last legislative session for Maine residents 65 or older from $1,500 to $2,000 and income eligibility was also expanded. However, the state website does not yet reflect this increase.
Homeowners and renters who are Maine residents may be eligible for the property tax fairness credit. Maine Revenue Services administers this program; to apply, you must file a form 1040ME with a Schedule PTFC/STFC for the tax year during which the property tax or rent was paid.
This is a reimbursable credit; even if you do not owe State income taxes, you can file for the Property Tax Fairness Credit and receive a reimbursement of a portion of the property taxes or rent paid on your home if you are eligible. Information on and assistance in filing for the Property Tax Fairness credit can be found through Maine Revenue Services (email: income.tax@maine.gov; phone 207-624-9784).
Eligibility is based on your income and the amount of your property tax bill (the credit is based on a portion of the tax bill that is over 4% of the applicant's income). Income limits change each year, and other rules affect the final tax credit amount as well.
Note: Veterans who are permanently and totally disabled are eligible for an additional property tax fairness credit amount.
If you do not generally file a Maine income tax form or would like assistance in completing the form to determine your eligibility for the Property Tax Fairness Credit, consider working with one of the free tax preparation programs in Bath. These IRS-certified volunteers are fully qualified to prepare and e-file most common federal and state tax returns. AARP's Tax-Aide program has volunteers at the Patten Free Library (Wednesdays and Thursdays) and the Bath Senior Center (Saturdays and Mondays) each year from February 1 to April 15. No appointment is needed, and services are available to low and moderate-income Maine residents of all ages. CA$H Maine also offers free tax preparation in the Mid-Coast area for those with incomes under $64,000; call 295-6340 or 751-3756 to make an appointment at the United Way office (34 Wing Farm Pkwy) or schedule an appointment on their website.
To obtain Maine income tax forms, including the PTFC schedule, or to file your Maine income tax forms online, visit Maine Revenue Services' web page.
PROPERTY TAX STABILIZATION -- PROGRAM HAS ENDED
In 2023, the Maine State Legislature ended the Maine Property Tax Stabilization Program and implemented expansions in two alternative programs to provide more targeted property tax relief for property owners who are age 65+ or who are disabled. There is no Property Tax Stabilization program application available for the 2024 tax year because the program has been replaced with the expanded Property Tax Fairness Credit.
STATE PROPERTY TAX DEFERRAL PROGRAM
The State Property Tax Deferral Program was recently updated during the last legislative session for qualifying Maine residents. Maximum income was raised from $40,000 to $80,000 and increased the maximum asset test to $100,000. However, the state website does not yet reflect this increase.
The State Property Tax Deferral Program is a lifeline loan program that can cover the annual property tax bills of Maine people who are ages 65 and older or are permanently disabled and who cannot afford to pay them on their own. The loan program allows Maine's most vulnerable community members to age in place and ensures that property taxes are still delivered to municipalities requiring repayment of the loan once the property is sold or becomes part of an estate.
The loan creates a lien upon the property, which must be repaid when the property is sold or becomes an estate. However, the State of Maine will accept partial payments towards the accrued taxes, reducing the future liability to the applicant's estate. Importantly, a surviving spouse who is not yet eligible for the Property Tax Deferral program can elect to continue the loan for the previously deferred taxes without penalty and without triggering the lien to become due.
Information on the Property Tax Deferral loan program can be found through Maine Revenue Services (email: prop.tax@maine.gov; phone 207-624-5600). The application is available from Maine Revenue Services as of January 1 each year and must be filed by April 1 with the Cape Elizabeth Assessor. The assessor completes additional information about your residence and forwards the application to Maine Revenue Services, who decides on eligibility for the Property Tax Deferral loan program.
Note: Those enrolled in the Property Tax Deferral program are also eligible to file for the Property Tax Fairness Credit based on the amount of their tax bill, even though the State of Maine has loaned the money to pay the tax bill.
OTHER STATE TAX RELIEF CREDITS & PROGRAMS