When you’re looking for a new home, understanding the total cost of ownership is essential. While the bulk of what you’ll need to cover is the cost of the house itself, property taxes can make a big difference in the broader equation. If you need to keep your expenses down, opting for one of the lower-cost cities in Maine can be a smart move. If you’re curious about which areas have the best rates, here’s a look at property taxes in the state, along with the cities with the lowest property taxes in Maine.
How Property Taxes in Maine Work
Like many other states, Maine uses millage rates to determine how much a homeowner owes in property taxes. Generally speaking, a mill represents the amount a person owes per $1,000 of assessed home value.
For instance, a mill rate of 15 would translate to $15 per $1,000 of assessed value. If a home had an assessed value of $200,000, that would lead them to owe $3,000 in property taxes annually.
Also, like most states, mill rates – and, therefore, effective property tax rates – vary from one county to the next. Additionally, while a mill rate isn’t functionally a percentage, it can be converted, allowing people to compare average effective property tax rates within a state or across the country.
Cities with the Lowest Property Taxes in Maine
Since property tax rates are typically county-based, not city-specific, all towns within a particular county usually have similar effective tax rates. In Maine, the county with the lowest effective rate – according to Smart Asset – is Hancock County at 1.00 percent.
There are a number of cities within Hancock County that may appeal to homebuyers, including:
- Bar Harbor
- Blue Hill
- Deer Isle
- Ellsworth
- Lamoine
- Southwest Harbor
- Trenton
After Hancock County comes Lincoln County, with an effective tax rate of 1.08 percent. Cities homebuyers might want to explore here include:
- Boothbay Harbor
- Damariscotta
- Dresden
- Nobleboro
- Waldoboro
- Whitefield
- Wiscasset
There’s a big leap between Lincoln County and the third-lowest on the list. While the effective property tax rate in Piscataquis County is 1.24 percent – 0.16 percentage points above Lincoln County – it’s actually one of the more affordable areas from a property tax perspective.
Some of the Piscataquis County cities that may be worth checking out are:
- Atkinson
- Bowerbank
- Dover-Foxcroft
- Guilford
- Sebec
- Willimantic
Cities with the Highest Property Taxes in Maine
Understanding which cities in Maine have the highest property taxes is also crucial if overall affordability is a priority. It helps you determine if an area may be far more expensive to live in as a homeowner, making it easier to decide which place is legitimately the best for your budget.
Generally, the highest cost cities are in Androscoggin County. That region has an average effective property tax rate of 1.71 percent, putting it far above the rest of the state.
Some of the cities in Androscoggin County include:
- Durham
- Green
- Leeds
- Lewiston
- Lisbon
- Livermore
- Mechanic Falls
- Poland
- Sabattus
- Wales
The county with the second-highest property taxes is Aroostook, which comes in at 1.46 percent. Some cities in that county include:
- Ashland
- Caribou
- Easton
- Fort Fairfield
- Garfield Plantation
- Limestone
- Mars Hill
- Masardis
- Portage Lake
- Presque Isle
- Saint Agatha
Finally, the third most expensive area for Maine property taxes is Penobscot County, with a rate of 1.45 percent. Cities in that county include:
- Bangor
- Charleston
- Corinth
- Hampden
- Hermon
- Old Town
- Orono
- Passadumkeag
Property Tax Rates in Other Maine Counties
Aside from the counties listed above, property taxes fall in the 1.25 to 1.39 percent range. Here’s an overview of the average effective property tax rates in those areas, listed from lowest to highest within this group:
- Franklin County – 1.25 percent
- York County – 1.27 percent
- Waldo County – 1.29 percent
- Somerset County – 1.30 percent
- Washington County – 1.30 percent
- Knox County – 1.32 percent
- Oxford County – 1.33 percent
- Kennebec County – 1.37 percent
- Sagadahoc County – 1.38 percent
- Cumberland County – 1.39 percent
How to Reduce Your Property Taxes in Maine
Generally speaking, property taxes on a home are fairly set. They are based on the home’s assessed value and millage rates in the area in which the house resides. However, there are some programs that may help you keep them in check.
Maine has several property tax exemptions, allowing homeowners to reduce the taxable value of their property. The Homestead Exemption is the most commonly used, but there are others. For instance, the Veteran Exemption allows those who served during a war period who are also at least 62 years old or that have 100 percent disability as a veteran to get additional assistance.
There are also tax relief programs that may assist some homeowners. Finally, if you feel that your property tax assessment is inaccurate, homeowners can submit an abatement of tax request to being a process that determines if an adjustment is justified.
When you’re looking for a new home, is finding the lowest property taxes in Maine a priority? If so, why is that a main concern? If not, what do you focus on instead? Share your thoughts in the comments below.
Read More:
- Property Tax Bill Too High? Here’s How to Appeal
- What Homeowners Should Know About Texas Property Tax Loans
- When Buying Your First Home, Avoid These 3 Common Blunders
Come back to what you love! Dollardig.com is the most reliable cash back site on the web. Just sign up, click, shop and get full cash back!
Tamila McDonald is a U.S. Army veteran with 20 years of service, including five years as a military financial advisor. After retiring from the Army, she spent eight years as an AFCPE-certified personal financial advisor for wounded warriors and their families. Now she writes about personal finance and benefits programs for numerous financial websites.
Comments