The great state of Maine is VERY favorable from a tax perspective for most retirees.
Unfortunately, unless you dive into the numbers many people will not realize this. They’ll see the state and local tax rate of 10.2% and go running for the hills!
But as we show you in the video, very few Mainah’s are going to pay anywhere near that kind of income tax rate. In fact, the vast majority of retirees in Maine won’t pay ANY income tax at all.
From a sales tax perspective, Maine is pretty good as well. Not quite as good as their friendly neighbor to the south, New Hampshire. But their 5.5% ‘all in” sales tax rate puts Maine in the top 10 of sales tax minimization of all the US.
It’s their property tax where they can get you. 1.23% on assessed value. This rate puts Mainers in the top 10 for most UNFAVORABLE property tax.
But, as I’ve said many times, of the 3 primary sources of taxation, sales, property and income, having 2 out of 3 being favorable is quite a good place to be.
And thus, Maine is a good place for retirees indeed.
If you are interested in reading material about the state of Maine, other than just Stephen King or Thoreau, do yourself a favor and get some Kenneth Roberts books. Best historical fiction of his times.
Kenneth Roberts Amazon Page.