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.
Assumptions behind this comparison
The ranking uses a full-year resident, single filer age 67, with $30,000 Social Security, $20,000 private defined-benefit pension, $20,000 traditional IRA withdrawals under 2026 rules. It models a general private pension and traditional IRA withdrawals. Public or military pension exceptions, early-distribution penalties and itemized deductions require separate checking. Maryland and Indiana estimates include an approximate statewide-average county income tax; other local income taxes are not modeled. A state with no income tax differs from a state that exempts only specified retirement income.
The joint table uses two spouses age 67, with each income category split equally between them. Personal exclusions follow each spouse's own eligible income; some states instead allow a joint cap. The calculator initially assigns household income to you and lets you enter your spouse's actual age and share. Read the source instructions for your pension type.
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, qualifying employer-plan withdrawals can receive the pension exclusion while traditional IRA withdrawals do not. Keep each account in its own field when changing state; the calculator applies the state-specific treatment.
The employer-plan field supports federally taxable private 401(k) / 403(b) retirement distributions owned by someone aged 60 or older. Earlier distributions and Hawaii, Mississippi or Pennsylvania employer-plan scenarios are not calculated; funding or plan retirement eligibility needs a separate check. Enter each amount once; do not include completed rollovers, Roth payments or special public/military plans.
Older shared links did not identify employer-plan withdrawals separately. Pension and IRA amounts have been left unchanged. If an old amount includes 401(k) or 403(b) withdrawals, move that portion into the employer-plan field before comparing states; the tool cannot infer the original account type.
Household totals include taxable private pensions and traditional retirement withdrawals. Other ordinary income means taxable interest and ordinary dividends; capital gains, qualified dividends, tax-exempt interest, wages, Roth distributions and special public or military pension rules need a separate calculation. Disability and survivor eligibility are not assessed by this tool. Age bands represent the listed ages for the full year; midyear eligibility and birth-date exceptions need checking.
Local income taxes are not modeled here, except the approximate statewide-average county rates included when you select Maryland or Indiana.
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.
How this retirement estimate is calculated
These rows use your current household, not a second fixed example. Income counted by the state is shown before its regular deductions; an exclusion is not a tax credit. This remains a planning estimate, not a completed return.
| Calculation step | Annual amount |
|---|---|
| Social Security taxable federally | $22,350 |
| Social Security counted by this state | $0 |
| Pension / retirement withdrawals excluded by state rules | $19,824 |
| Pension / retirement withdrawals still counted | $20,176 |
| Other ordinary income counted | $0 |
| Additional state age / senior income subtractions | $0 |
| Income before regular state deductions and exemptions | $20,176 |
| Taxable base after regular state deductions and exemptions | $0 |
| State tax before additional retirement credits | $0 |
| Additional modeled retirement tax credits | $0 |
| State tax after those credits | $0 |
| Modeled state and included county tax | $0 |
The 2026 pension deduction cap is $49,824 per eligible owner, reduced by that owner's Social Security received, including benefits not taxed federally. The model then applies its income phase-out and other eligibility limits. The 2026 phase-out thresholds are provisional calculated amounts, not a published final Maine return table. Maine's 2026 estimated-tax worksheet confirms the cap; the pension deduction statute supplies eligibility and phase-out rules.
What retirees pay in Maine
| Retirement income | State tax (single) | State tax (married) | Federal tax (single) |
|---|---|---|---|
| $24,000 Social Security, $12,000 traditional IRA withdrawals | $0 | $0 | $0 |
| $30,000 Social Security, $20,000 private defined-benefit pension, $20,000 traditional IRA withdrawals | $0 | $0 | $4,336 |
| $40,000 Social Security, $40,000 private defined-benefit pension, $50,000 traditional IRA withdrawals, $10,000 other income | $4,322 | $0 | $19,812 |
Age 67, 2026 rules including the federal senior deduction. For the joint column, income is the household total, both spouses are 67, and each owns 50% of every income category. 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 private defined-benefit pension, $20,000 traditional IRA withdrawals, 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 .