Retiring in Maine: how your income is taxed
Maine is very tax-friendly for retirees. On a typical retirement income it ranks tied for #1 of 51 with 18 other states for the lowest state income tax.
The rules in Maine
- Social Security: Maine fully excludes Social Security benefits that are taxable federally.
- Pensions: The pension income deduction is up to $49,824 per person for 2026 ($48,216 for 2025), minus any Social Security and Railroad Retirement benefits received. It covers 401(a), 401(k), 403 and 457(b) plans, IRAs and government pensions. Pensions paid for life qualify at any age; other employer-plan distributions taken before 55 don't, and neither do withdrawals that owe the federal 10% early-withdrawal penalty. Since 2025 the deduction phases out as federal AGI rises above a threshold that is adjusted for inflation each year (about $128,000 single or $256,000 joint for 2026), and it is gone $100,000 above that.
- 401(k), 403(b) and IRA withdrawals: 401(k) and IRA withdrawals share the same pension income deduction, reduced by Social Security and subject to the same income phase-out.
- At 65 and older: Filers 65 or older add $2,050 to the standard deduction ($1,650 per spouse on a joint return).
Calculate your Maine retirement taxes
State income tax in Maine: $0 a year
In Maine, the 401(k)/IRA amount counts as IRA withdrawals, which don't qualify for the pension exclusion. Enter withdrawals from employer plans such as a 401(k) or 403(b) as pension.
In Maine you'd pay about $0 in state income tax and $4,336 in federal income tax on $70,000 of retirement income, keeping $65,664 (6.2% total).
Maine ranks tied for #1 of 51 with 18 other states for the lowest state tax on this income. 19 states charge no state income tax on this income.
What retirees pay in Maine
| Retirement income | State tax (single) | State tax (married) | Federal tax (single) |
|---|---|---|---|
| $24,000 Social Security, $12,000 401(k)/IRA | $0 | $0 | $0 |
| $30,000 Social Security, $20,000 pension, $20,000 401(k)/IRA | $0 | $0 | $4,336 |
| $40,000 Social Security, $40,000 pension, $50,000 401(k)/IRA, $10,000 other income | $4,322 | $0 | $19,812 |
Age 67 or older, 2026 rules including the federal senior deduction. For married couples, income is the household total and both spouses are 67 or older. State estimates apply Maine's main exclusions and may differ for income-tested credits.
Moving to Maine in retirement?
Compare the tax on your Social Security, pension and 401(k)/IRA income, and typical living costs, with the state you'd leave. These are the states most households moving to Maine come from (IRS migration data, 2022–2023).
- Massachusetts to Maine
- New Hampshire to Maine
- Florida to Maine
- New York to Maine
- California to Maine
- Connecticut to Maine
Frequently asked questions
Does Maine tax Social Security?
Not taxed. Maine fully excludes Social Security benefits that are taxable federally.
Does Maine tax pensions?
Partly taxed. The pension income deduction is up to $49,824 per person for 2026 ($48,216 for 2025), minus any Social Security and Railroad Retirement benefits received. It covers 401(a), 401(k), 403 and 457(b) plans, IRAs and government pensions. Pensions paid for life qualify at any age; other employer-plan distributions taken before 55 don't, and neither do withdrawals that owe the federal 10% early-withdrawal penalty. Since 2025 the deduction phases out as federal AGI rises above a threshold that is adjusted for inflation each year (about $128,000 single or $256,000 joint for 2026), and it is gone $100,000 above that.
Does Maine tax 401(k) and IRA withdrawals?
Partly taxed. 401(k) and IRA withdrawals share the same pension income deduction, reduced by Social Security and subject to the same income phase-out.
Is Maine a good state to retire for taxes?
For a single retiree with $30,000 Social Security, $20,000 pension, $20,000 401(k)/IRA, Maine charges about $0 in state income tax, ranking tied for #1 of 51 with 18 other states (lowest tax first).
Related
Sources: legislature.maine.gov, maine.gov, maine.gov (2), legislature.maine.gov (2), ssa.gov, mainepers.org. Rules reviewed .