An Overview of the Maine Estate Tax
Learn about the Maine estate tax, why the state levies one, and the tax rates and thresholds that impact residents and property owners.
If you’re sorting out plans in Maine, the Maine estate tax is a key concept to understand. Maine does not have an inheritance tax; instead, it taxes certain estates before assets are distributed. The Maine estate tax targets larger estates with a $7 million exclusion and 8%–12% graduated rates.
Yes. The tax applies to the Maine taxable estate, which starts from federal concepts and then adds state-specific adjustments. Maine uses brackets of 8%, 10%, and 12% on amounts above the exclusion.
Maine once used an inheritance tax. In 1981, lawmakers enacted a reform to phase down the inheritance tax and replace it with an estate tax tied to federal mechanics. That change became fully effective for passings after mid-1986, and the state has updated thresholds over time. Maine Revenue Services lists historical exclusion amounts, showing the rise from $1,000,000 in the late 2000s to $7,000,000 today.
How the Maine Estate Tax Adds Up
These examples use simplified math to illustrate how brackets work.
Example 1: $7.5 million Maine taxable estate. Amount above exclusion: $500,000. Tax: 8% of $500,000 = $40,000.
Example 2: $9.2 million Maine taxable estate. Amount above exclusion: $2.2 million. All within the 8% bracket. Tax: $176,000.
Example 3: $12.5 million Maine taxable estate. Amount above exclusion: $5.5 million. First $3 million at 8% ($240,000) + next $2.5 million at 10% ($250,000) = $490,000. Larger estates can trigger the 12% bracket on amounts above that range.
A Few FAQs
What is the current estate tax exclusion amount?
For 2025, the exclusion is $7,000,000. Earlier years were lower.
What are the estate tax rates?
Graduated 8%, 10%, and 12% rates apply to amounts above the exclusion.
Who files Form 706ME?
Personal representatives file 706ME when the estate exceeds the threshold or when certain elections apply.
Do nonresidents ever file?
Yes, when a nonresident owned Maine-situs real estate or tangible property and other filing triggers apply. So, if someone lived elsewhere but owned Maine real estate or tangible property, part of the Maine estate tax can still apply. Maine often calculates tax as if all assets were in Maine, then prorates by the Maine-sourced share. An automatic lien can apply to Maine property; personal representatives can use the 700-SOV statement to request a release when no tax is due.
Where can I check official guidance?
Maine Revenue Services maintains an online page with FAQs, forms, and instructions.
What planning angles do families consider?
People often review beneficiary designations, charitable bequests, and marital strategies. Maine allows a state-specific QTIP election in certain situations, which can affect timing and amount of Maine estate tax.
(Read More: Learn about revocable trusts in Maine versus Nevada.)