
Property Taxes Could Be Scrapped for Senior Citizens in Maine
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Property taxes could be completely scrapped for homeowners aged 65 and older in Maine if a proposal pushed forward by Senate Republicans is passed by the state House.
LD 1541, which was referred to the state's Committee on Taxation in early April, would offer significant financial relief to longtime retirees who have lived in Maine for 10 or more consecutive years and have been hit hard by recent property tax increases.
Why It Matters
Maine's proposal to eliminate property taxes is just one of many currently moving through the legislatures of several states across the country. With home values skyrocketing in recent years as a result of the pandemic homebuying frenzy and a nationwide inventory shortage, property tax bills have also gone through the roof, fueling resentment and frustration against this type of taxation.
The issue is particularly pressing when it comes to older homeowners, who are often on a fixed income and risk being priced out of their own homes as housing costs, including property tax bills, rise.
What To Know
Property tax rates in Maine, at an average of 1.17 percent, are well above the national average of 0.9 percent, according to SmartAssets, with the typical Maine residents paying $2,855 a year in bills.
Property taxes have risen in step with home values, which have exploded in the state in recent years. In April 2020, the median sale price of a home in Maine was $239,000, according to Redfin, up 12 percent from a year earlier; in April 2025, it was $403,200, up 8.8 percent from a year earlier.
The growing cost of housing is impacting older homeowners the hardest, especially as their property tax bills may now be even higher than their mortgage payments, if they still have any.
A general view of a residential district in Portland, Maine.
A general view of a residential district in Portland, Maine.
Getty Images
LD 1541 would eliminate property taxes for longtime senior residents in Maine, while the state government would reimburse local government for the lost revenues, which they use to fund public services like libraries, schools, and firefighting. Crucially, the bill does not include details of how much abolishing property taxes would cost the state.
Maine already offers property tax credits to older homeowners, giving them the chance to receive a portion of the property tax paid during the tax year on the Maine individual income tax return whether they owe the state income tax or not. The state also offers a property tax deferral program which covers the payment of annual property tax bills for seniors who cannot afford to pay them on their own.
Lawmakers in Maine have already tried to offer property tax relief to seniors in the state under a 2022 program that would have frozen bills for eligible residents so they wouldn't increase year to year with home values. The initiative, however, was repealed after 11 months due to its high cost, after the state spent $26 million on it.
Newsweek contacted Maine GOP Senator Joseph Martin, who sponsored LD 1541, for comment by email on Tuesday, but has so far received no response.
What People Are Saying
Maine House Minority Leader Billy Bob Faulkingham, a Republican, recently told WGME: "We have an aging population, and a lot of people on lower income in that age range, and it's just an incredibly unfair burden to put on them."
He added: "I think our seniors are a worthy expense, and keeping them in their homes is very important."
Maine Center for Economic Policy state and local tax policy analyst Maura Pillsbury told WGME: "This could end up increasing property taxes for other folks in the community. This could put municipalities in a position where they can't fund local services and education."
State Senate President Mattie Daughtry, a Democrat, said in a statement shared by WGME: "I myself have a property tax relief bill that seeks to address part of these concerns. We know Mainers are struggling. It's important to have a wide range of ideas, and I'm looking forward to having these bills go through committee and holding meaningful discussions on what's best for Maine people."
What Happens Next
The bill is going through the Maine legislature and would need to be passed by the state House to move forward. But many have questions over how Maine would cover for lost revenues and who would eventually shoulder the additional financial burden no longer carried by senior residents.
Younger Mainers might end up shouldering the weight of property taxes, especially considering that the Pine Tree State's population is the oldest in the nation, with nearly a quarter of its population over the age of 65, according to a 2024 report by the State Economist of Maine.
This could further exacerbate the challenges facing first-time homebuyers in the state, who are struggling to get on the property ladder because of historically high mortgage rates, rising prices and growing housing costs.

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