Property Tax Relief

Property Tax Relief Programs

State Property Tax Deferral Program
The State Property Tax Deferral Program is a lifeline loan program that can cover the annual property tax bills of Maine people who are ages 65 and older or are permanently disabled and who cannot afford to pay them on their own. The loan program allows Maine's most vulnerable community members to age in place and ensures that property taxes are still delivered to municipalities, requiring repayment of the loan once the property is sold or becomes part of an estate.

Property Tax Fairness Credit
Eligible Maine taxpayers may receive a portion of the property tax or rent paid during the tax year on the Maine individual income tax return whether they owe Maine income tax or not. If the credit exceeds the amount of your individual income tax due for the tax year, the excess amount of credit will be refunded to you.

Business Equipment Tax Exemption Program (BETE)
The BETE program is a 100% property tax exemption program for eligible property that would have been first subject to tax in Maine on or after 4/1/08. BETE does not replace the Business Equipment Tax Reimbursement program (see below). The BETR program remains in place for qualified property placed in service after April 1, 1995 and on or before April 1, 2007 and for retail property placed in service after April 1, 1995.

Business Equipment Tax Reimbursement Program (BETR)
The BETR program is designed to encourage capital investment in Maine. The program reimburses taxpayers for local property taxes paid on most qualified business property. To qualify, qualified business property must have been first placed in service in Maine after April 1, 1995.

Current Use Programs (Farm Land, Open Space, Tree Growth, Working Waterfront)
The State of Maine has four "current use" programs that offer the property owner a reduction in assessed value: Farmland, Open Space, Tree Growth, and Working Waterfront. The programs establish valuation of property at its current use, rather than at market value.

All four programs are available to property owners through an application process with the local municipality. Applications must be filed on or before April 1 of the year the reduced valuation is first requested.

Property must meet certain criteria to qualify for each program and any future change in the use of the land will cause disqualification resulting in a penalty.

Exemption from Property Tax

Certain classes of property are tax-exempt by law. Fully exempt property tax may include real estate or personal property owned by governmental entities, school systems, and other institutions. Partially exempt property tax relates to the following categories:

  • Blind Exemption
  • Business Equipment Tax Exemption
  • Homestead Exemption
  • Renewable Energy Investment Exemption
  • Veteran Exemption