State retirement taxes · 2026
Does Maine tax retirement income?
Short answer: Partly. Maine does not tax Social Security benefits. Up to $49,824 per person of pension and IRA income is deducted in 2026, reduced by the Social Security you receive.
What’s taxed in Maine
2026 rules.
- Social SecurityNot taxed
- Maine does not tax Social Security benefits.
- PensionsPartly taxed
- Up to $49,824 per person of pension and IRA income is deducted in 2026, minus the Social Security you receive.
- IRA & 401(k) withdrawalsPartly taxed
- IRA and 401(k) withdrawals count toward the same $49,824 deduction.
- Military retirement payNot taxed
- Military retirement pay is fully exempt — no cap, no Social Security offset and no income phase-out. From 2026 this also covers NOAA and Public Health Service retirees.
- Income tax rate7.15% top
- Three brackets for 2026: 5.8%, 6.75% and 7.15% (7.15% starts at $64,850 single, $129,750 joint, $97,300 head of household).
Does Maine tax Social Security?
Maine does not tax Social Security benefits.
The taxable amount of Social Security and Railroad Retirement benefits is subtracted, with no age or income test. But the benefits you receive (taxable or not) reduce the pension income deduction cap.
Your federal return is a separate question — see how much of your benefit the IRS taxes with the taxable Social Security calculator.
Are pensions taxed in Maine?
Up to $49,824 per person of pension and IRA income is deducted in 2026, minus the Social Security you receive.
The pension income deduction has no minimum age, but distributions before 55 that are not substantially equal periodic payments don’t qualify (from September 24, 2025). The cap is $49,824 for 2026 ($48,216 for 2025) and must be reduced by all Social Security and Railroad Retirement benefits received, taxable or not. It covers state and federal pensions, 401(a), 401(k), 403, 457(b), IRAs, Roth IRAs, SEP and SIMPLE plans. From 2025 the deduction phases out as federal AGI rises above $125,000 (single, and married filing separately from 2026), $187,500 (head of household) or $250,000 (joint) — gone $100,000 above the threshold ($50,000 for married filing separately). The 2026 inflation-adjusted thresholds are not yet published.
Public vs. private pensions: Same deduction for both.
Are IRA and 401(k) withdrawals taxed in Maine?
IRA and 401(k) withdrawals count toward the same $49,824 deduction.
Subject to the same cap, Social Security offset and income phase-out. Roth conversions do not qualify.
Required minimum distributions (RMDs) are IRA and 401(k) withdrawals, so the same rules apply. Estimate your RMD.
Is military retirement pay taxed in Maine?
Military retirement pay is fully exempt — no cap, no Social Security offset and no income phase-out. From 2026 this also covers NOAA and Public Health Service retirees.
What is Maine’s income tax rate?
3 brackets, topping out at 7.15%.
Three brackets for 2026: 5.8%, 6.75% and 7.15% (7.15% starts at $64,850 single, $129,750 joint, $97,300 head of household). New in 2026: a 2% surcharge on Maine taxable income above $1 million single ($750,000 married filing separately, $1.5 million joint or head of household).
2026 brackets. Each rate applies to taxable income above the amount shown.
| Single | Married, joint | Rate |
|---|---|---|
| $0 | $0 | 5.8% |
| $27,400 | $54,850 | 6.75% |
| $64,850 | $129,750 | 7.15% |
Standard deduction and exemptions
2026 standard deduction: $15,700 single or married filing separately, $23,550 head of household, $31,400 joint, plus $2,050 (unmarried) or $1,650 (married) for each 65+/blind box. Personal exemption: $5,300 each. Both phase out at higher incomes. From 2027 Maine’s standard deduction equals the federal one.
What tax breaks do seniors get in Maine?
The extra standard deduction at 65+. The refundable Property Tax Fairness Credit is up to $2,000 for people 65+. Whether Maine passes through the federal $6,000 senior deduction is not confirmed.
What changed for 2026?
2025: an income phase-out was added to the pension deduction, and pre-55 non-periodic payouts were excluded. 2026: the 2% surcharge on income over $1 million; the military exemption expanded to NOAA and PHS; the married-filing-separately phase-out aligned at $125,000; a $300 affordability payment. 2027: the standard deduction matches the federal amount and surcharge thresholds are indexed.
The 2026 rate schedules (revised May 20, 2026) are official.
What we couldn’t confirm
- Maine’s 2026 inflation-adjusted phase-out thresholds for the pension deduction are not yet published; we show the 2025 base amounts.
- We could not confirm whether the federal $6,000 senior deduction flows into Maine.
How Maine compares with its neighbors
Thinking of moving across the line? Here’s how each bordering state treats retirement income in 2026.
- MaineThis pageVery friendlySocial Security Not taxedTop rate: 7.15% top
- New HampshireTax-free retirement incomeSocial Security Not taxedTop rate: None
State tax is half the picture — check the federal side
Maine retirement tax questions
Is Maine tax-friendly for retirees?
We rate Maine “Very friendly” for 2026. Maine does not tax Social Security benefits. Up to $49,824 per person of pension and IRA income is deducted in 2026, reduced by the Social Security you receive. The top income tax rate is 7.15%.
Are required minimum distributions (RMDs) taxed in Maine?
RMDs are withdrawals from IRAs and 401(k)-type plans, so they follow Maine’s rules for those accounts. IRA and 401(k) withdrawals count toward the same $49,824 deduction.
Is military retirement pay taxed in Maine?
No. Military retirement pay is fully exempt — no cap, no Social Security offset and no income phase-out. From 2026 this also covers NOAA and Public Health Service retirees.
What is Maine’s income tax rate for 2026?
Three brackets for 2026: 5.8%, 6.75% and 7.15% (7.15% starts at $64,850 single, $129,750 joint, $97,300 head of household). New in 2026: a 2% surcharge on Maine taxable income above $1 million single ($750,000 married filing separately, $1.5 million joint or head of household).
Sources for Maine
Primary sources only. We re-check them whenever an agency publishes new figures.
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