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State guides · ME

How Maine taxes retirement income

Some 2026 figures pending confirmation  Tax year 2026 · research last updated October 2, 2026

  • Maine doesn't tax Social Security benefits.
  • Exclusions and subtractions for retirement income (details below):
    • Pension income deduction (non-military), Schedule 1S line 4: at most $49,824 per person, income limits apply.
    • Military retirement pay deduction.
  • Rates for 2026: 5.8% to 7.15%, graduated.

At a glance

Income taxYes
Rates (2026)5.8% to 7.15%, graduated
Starts fromFederal adjusted gross income (AGI)
Standard deduction$15,700 single, $31,400 married filing jointly
Personal exemption$5,300 per person
Age 65 and older$2,050 extra deduction per person
Social SecurityNot taxed
Retirement income exclusions2 (see below)
Roth conversionsTaxable
Capital gainsTaxed like other income
Local income taxNone

Tax rates

Brackets apply to Maine taxable income. Other filing statuses are in the rules reference.

RateSingle: taxable incomeMarried filing jointly: taxable income
5.8%$0 to $27,400$0 to $54,850
6.75%$27,400 to $64,850$54,850 to $129,750
7.15%$64,850 and up$129,750 and up

Social Security

Maine doesn't tax Social Security benefits.

Pensions, IRAs and 401(k)s

Pension income deduction (non-military), Schedule 1S line 4

Limit: $49,824 per person · Applies to: pensions, IRA distributions, roth ira, 401(k) distributions, 403b, 457b, SEP plans, simple, annuities (employer plan / IRA annuity)

Per primary recipient (the person who earned the benefit, or the surviving spouse): lesser of (a) eligible pension income included in federal AGI (1040 lines 4b/5b) or (b) the pension deduction amount minus ALL Social Security and Railroad Retirement benefits that person received (taxable or not), not below 0. The pension deduction amount for 2024+ is the maximum annual Social Security benefit at full retirement age as of Jan. 1 of the tax year: 2024 $45,864, 2025 $48,216, 2026 $49,824 (published: 2026 Form 1040ES-ME line 2, Rev. July 2026). Eligible: 401(a), 401(k), 403, 457(b), traditional and Roth IRAs, SIMPLE, SEP, state and federal pensions. Not eligible: Roth conversions ('a conversion of benefits from one account to another does not qualify'), 457(f), excess-contribution refunds, Form 4972 lump sums, and distributions received before age 55 that are not part of a series of substantially equal periodic payments (2025 change). Each spouse computes separately on a joint return.

Income limit: Phase-out (36 M.R.S. 5122(2)(M-3), 2025+): deduction x [(federal AGI - threshold) / $100,000] is removed ($50,000 denominator if MFS), fully gone at threshold + $100,000. 2025 thresholds: $125,000 single/MFS, $187,500 HOH, $250,000 MFJ/QSS; indexed for inflation after 2025. From TY2026 the MFS threshold equals the single threshold (P.L. 2025 c. 662 Pt. A, MRS 2026 legislative changes p.4) instead of half of MFJ. 2026 amounts not yet published (derived 127,850 S/MFS, 191,800 HOH, 255,750 MFJ).

Military retirement pay deduction

Applies to: military retirement

Military retirement pay included in federal AGI is fully deductible (worksheet line P9), not reduced by Social Security and not subject to the phase-out; military survivor-benefit-plan annuities are separately exempt.

Roth conversions

A Roth conversion counts as taxable income for Maine. Whether a retirement income exclusion can cover part of it depends on the rules above.

Capital gains

Taxed like other income, at the rates above.

Credits and relief for older residents

  • Property Tax Fairness Credit (refundable): from TY2026 up to $1,500 under 65, $2,000 if 65 or older (P.L. 2025 c. 650 Pt. CCCC; MRS 2026 legislative changes p.6); 2025 income limit $102,500 if 65+ (lower for others); property tax > 4% of income or rent > 26.67% of income; not available MFS. 2026 income limits not yet published.
  • Sales Tax Fairness Credit (refundable): up to $280; 2025 income limit $32,950 single, $51,700 HOH, $63,950 MFJ.
More detail from our research notes

Maine AGI = federal AGI + Schedule 1A additions - Schedule 1S subtractions (taxable Social Security/RRB line 3, pension deduction line 4, US bond interest line 1, etc.). Maine taxable income = Maine AGI - standard or itemized deduction - personal exemption. Brackets, standard deduction and personal exemption are indexed annually (36 M.R.S. 5403); 2026 values from MRS's schedule revised May 20, 2026 (an earlier 2026 version showed a $15,300 single standard deduction — use the revised $15,700). Age 65+/blind additional standard deduction 2026: $2,050 per condition if unmarried (single/HOH), $1,650 per condition if married or QSS (MFJ both 65+ = +$3,300). The standard deduction and personal exemption phase out at high Maine AGI (2026, published MRS worksheets Rev. Dec 2025: standard/itemized deduction phase-out begins at $102,250 single/MFS, $153,400 HOH, $204,550 MFJ over $75,000/$112,500/$150,000 ranges; personal exemption phase-out begins at $341,000 single, $375,050 HOH, $409,150 MFJ, $204,575 MFS over $125,000 ($62,500 MFS)). Maine itemized deductions (excluding medical) capped at $37,100 in 2026 ($36,300 in 2025). New for 2026: 2% surcharge on Maine taxable income above $1,000,000 single / $750,000 MFS / $1,500,000 MFJ and HOH. Pension deduction interacts with Social Security: a retiree receiving $49,824+ of Social Security gets no non-military pension deduction. P.L. 2025 c. 650 Pt. K (2026 session) conforms Title 36 to the IRC as amended through Dec. 31, 2025, and sets the 2025 basic standard deduction at $15,000/$22,500/$30,000 and 2026 at $15,700/$23,550/$31,400 (MRS 2026 legislative changes pp.3-5). 2027 and later (enacted): the Maine standard deduction equals the federal standard deduction, still subject to the Maine phase-out (36 M.R.S. 5124-C(1-D), P.L. 2025 c. 650 Pt. K §15); the 2% surcharge thresholds are indexed for inflation from TY2027 (36 M.R.S. 5403(12), P.L. 2025 c. 650 Pt. DDDD). See scheduled.json.

Pending confirmation

These points were still being confirmed against Maine's published 2026 forms when this page was built. Most are waiting on forms the state publishes around the turn of the year.

4 items
  • 2026 inflation-adjusted pension-deduction phase-out thresholds are DERIVED (127,850 single/MFS, 191,800 HOH, 255,750 MFJ; 2025 $125,000/$187,500/$250,000 x 5403(11) chained CPI); MRS has not published them (not in the 2026 1040ES-ME Rev. July 2026, rate schedule Rev. May 20 2026, or phase-out worksheets). Expected on the 2026 Schedule 1S / Pension Income Deduction Worksheet (Dec 2026 - Jan 2027): https://www.maine.gov/revenue/tax-return-forms/individual-income-tax-2026
  • Property/Sales Tax Fairness Credit 2026 income limits (2025 shown); PTFC maximums for 2026 are $1,500 (<65) / $2,000 (65+) per MRS 2026 legislative changes.
  • Age-65 determination date assumed to follow federal rules (65 by end of tax year).
  • 2027: the Maine standard deduction becomes the federal standard deduction (enacted, P.L. 2025 c. 650 Pt. K §15); Taxtirement still indexes the 2026 Maine amounts (see scheduled.json needsCode). Federal 2027 amounts expected in the IRS 2027 inflation Rev. Proc. (Oct-Nov 2026).

Sources

Every figure comes from these documents, mostly the state's own forms, instructions and statutes.

  1. 2026 Form 1040ES-ME (Rev. July 2026): pension deduction max $49,824 (line 2), itemized cap $37,100 (line 6a), exemption $5,300https://www.maine.gov/revenue/sites/maine.gov.revenue/files/inline-files/26_1040es_fillable.pdf
  2. 2026 Phaseout of Itemized/Standard Deductions Worksheet (Rev. Dec 2025): $102,250/$153,400/$204,550 start, $37,100 itemized caphttps://www.maine.gov/revenue/sites/maine.gov.revenue/files/inline-files/26_item_stand_%20ded_phaseout_wksht_0.pdf
  3. 2026 Phaseout of Personal Exemption Worksheet (Rev. Dec 2025): $341,000/$375,050/$409,150/$204,575https://www.maine.gov/revenue/sites/maine.gov.revenue/files/inline-files/26_1040es_pers_exempt_phaseout_wksht.pdf
  4. MRS 2026 legislative changes summary (June 22 2026): IRC conformity 12/31/2025, MFS pension phase-out = single, PTFC $1,500/<65, surcharge indexed from 2027, standard deduction = federal from 2027https://www.maine.gov/revenue/sites/maine.gov.revenue/files/inline-files/legischange26.pdf
  5. 2025 Schedule 2 (itemized: federal line 17 less line 5e plus 5b/5c, $36,300 cap excl. medical) and 36 M.R.S. 5125; 2026 cap $37,100 published (research/states/itemized.json)https://legislature.maine.gov/statutes/36/title36sec5125.html
  6. 2026 rate schedules, standard deduction, personal exemption $5,300, age/blind additional amounts, 2% surcharge (revised May 20, 2026)https://www.maine.gov/revenue/sites/maine.gov.revenue/files/2026-05/ind_tax_rate_sched_2026_rev.pdf
  7. 36 M.R.S. 5122(2)(M-2),(M-3),(C): pension deduction amount formula (max SS benefit at FRA), SS reduction, phase-outhttps://legislature.maine.gov/statutes/36/title36sec5122.html
  8. 2025 Schedule 1S and Worksheet for Pension Income Deduction ($48,216 cap, SS reduction, phase-out worksheet)https://www.maine.gov/revenue/sites/maine.gov.revenue/files/inline-files/25_1040me_sch_1s_fillable.pdf
  9. 2025 1040ME instructions: eligible pension income list, Roth conversion exclusion, pre-55 rule, phase-outs, PTFC/STFC, quick factshttps://www.maine.gov/revenue/sites/maine.gov.revenue/files/inline-files/25_1040me_gen_instr_w_cover_pg.pdf

Taxtirement's Maine calculation is also checked against a second, independent implementation on 1,000 random households. How we check our numbers.

See your own years. Taxtirement applies these Maine rules, and the federal and Medicare rules, to your household for every year of retirement, and shows the calculation behind each number. Coming November 2026 for iPhone, iPad and Mac.

This page summarizes Maine's 2026 rules as Taxtirement applies them, for education and planning. It isn't tax advice, and it doesn't cover every situation (for example part-year residents, businesses or military-only provisions). Rules change; check the state's current instructions, or a tax professional, before you act. Spotted something wrong? Tell us.