Residential Exemptions & Tax Assistance Programs
The State of Maine provides a number of residential property tax exemptions and assistance programs that may help reduce property taxes for eligible homeowners. These programs are designed to offer relief to qualifying residents and require applications to be filed by specific deadlines.
Some programs are administered locally through the Assessing Office, while others are administered by Maine Revenue Services and applied for through a state income tax return.
Homestead Property Tax Exemption
The Homestead Exemption provides property tax relief for qualifying homeowners who make their property their permanent residence. To be eligible, the homeowner must have owned the property for at least 12 months and occupied it as their primary residence on April 1 of the tax year.
Eligible homeowners may receive an exemption of up to $25,000 from the assessed value of their home (based on a 100% assessment ratio). The actual amount of tax savings depends on the City’s tax rate and certified assessment ratio.
Because property taxes are based on local assessed values, the statewide exemption amount is adjusted to ensure fairness across all municipalities. The exemption applied to your property reflects Old Town’s certified ratio for the applicable tax year.
Applications must be filed with the Assessing Office by April 1 to qualify for the upcoming tax year. Once approved, the exemption remains in effect as long as eligibility requirements continue to be met. Property owners must reapply if they move, sell their property, or change their primary residence.
Homestead Application (see bottom of page) – (Title 36, M.R.S.A. § 681)
Veterans’ Property Tax Exemption
The State of Maine offers a property tax exemption for qualifying Veterans and certain surviving family members. This program provides tax relief to eligible property owners who meet one or more of the following criteria:
- Veterans age 62 or older who served during a recognized wartime period
- Veterans who receive 100% service-connected disability from the U.S. Department of Veterans Affairs
- Paraplegic Veterans – Specially Adapted Housing Grant Recipient
- A surviving spouse, minor child, or widowed parent of an eligible Veteran
Applications must be filed with the Assessing Office by April 1 to qualify for the upcoming tax year. Applications received after April 1 will take effect for the following tax year.
Applicants are required to submit appropriate documentation, including the Veteran’s DD-214, with the application. Separate application forms are available for surviving spouses, minor children, and widowed parents.
Veterans’ Exemption Application, Veterans’ Exemption for Widowed Spouse Minor Child or Widowed Parent Application & Paraplegix Veteram Exemption Application (see bottom of page) – Title 36, M.R.S.A. § 653
Blind Exemption
The State of Maine offers a Blind Exemption to homeowners who are legally blind.
Applications must be submitted by April 1 in order to qualify for the next tax year. You must provide a letter from your doctor with the application. Applications received after April 1 will not be effective until the following tax year.
Blind Exemption Application (see bottom of page) (Title 36, M.R.S.A. Section 654)
Property Tax Fairness Credit
The Property Tax Fairness Credit is administered by Maine Revenue Services and is applied for when filing your state income tax return. The Assessing Office does not administer this program but can provide general information. Here is a link to the State of Maine's website with additional information regarding the program: https://www.maine.gov/revenue/taxes/tax-relief-credits-programs/income-tax-credits/property-tax-fairness-credit
Renewable Energy Equipment Exemption
This program exempts renewable energy equipment, such as solar panels, from property tax. Taxpayers must apply for the credit by April 1 of the first year the exemption is requested.
Renewable Energy Exemption Application (see bottom of page) (Title 36, M.R.S.A. Sect. 655/656)
Maine Property Tax Deferral Program
In 2021, the Maine Legislature reinstated this property tax deferral program to help seniors and the fully disabled stay in their homes and age in place. For qualified and approved applicants, the State of Maine will pay the property taxes each year. The state will place a lien on the property and all deferred taxes (and accrued interest) are repaid to the state when the property is sold or the applicant passes away.
To qualify:
- You must be at least 65 years old or unable to work due to a disability.
- You must own and occupy the property as your principal residence, and you must be receiving a Homestead Exemption on the property.
- All owners must have combined liquid assets of less than $75,000 ($50,000 if a single owner) and combined income of less than $40,000. For applications filed after January 1, 2024, all owners must have combined liquid assets of less than $150,000 ($100,000 if a single owner) and combined income of less than $80,000.
- You must own your property in fee simple (in other words, there can’t be any limitations on your ability to sell or encumber the property), there must be no municipal liens on your property, you cannot be participating in a municipal deferral program, and there must be nothing preventing deferral in any federal law or rule. For applications filed after January 1, 2024, certain municipal liens are permissible, but there must be no more than 2 years of delinquent property taxes at the time of application for deferral.
- Applications must be filed with the Assessor's Office between January 1 and April 1 each year. Applications are forwarded to Maine Revenue Services who review the application and make the determination for acceptance and approval.
FrequentlyAsked Questions for Taxpayers (link to State Of Maine website)
Application & Instructions - Maine Property Tax Deferral Program (see bottom of page)
Program Guide for Applicants (see bottom of page)
More information can be found on the State Property Tax Deferral Program website (link to State Of Maine website).
Questions on this State managed program can be referred to Maine Revenue Services, Property Tax Division, at 207-624-5600 or by email at prop.tax@maine.gov.