Reducing Your Property Taxes
Taxes are an unfortunate reality of property ownership in Maine, but did you know that there are ways to reduce your tax burden?
As Tax Day approaches, we’ve outlined some of the available tax exemptions that you can claim to keep more money in your pocket:
Homestead exemption - This is one exemption that almost every Maine homeowner can claim. If your home is your primary and permanent residence and you’ve owned it for at least 12 months, you qualify! Apply before April 1 for a $25,000 exemption.
Renewable Energy Investment exemption - This program exempts renewable energy equipment from your taxes. If you’ve installed solar panels since April 1, 2020, you can claim this exemption.
Veteran exemption - If you have served in the armed forces, you may qualify for a $6,000 exemption. You must have served during a recognized war period and be over 62 year old, OR are receiving 100% disability as a Veteran, OR became 100% disabled while serving to claim the exemption.
Blind exemption - If you’re legally blind, you can claim a $4,000 exemption.
Similar to tax exemptions, there are also four “land use” classifications that can reduce the assessed value of your property, and therefore your tax bill:
Farmland - If your property is being used for farming, agriculture or horticulture, contains at least 5 acres of land, and contributes at least $2,000 in gross income from farming activities, you might qualify for a Farmland tax relief program.
Open Space - If you own a piece of land that is reserved for the benefit of the public such as a recreation space, wildlife habitat, a scenic resource or game management, you could receive up to a 95% reduction in your property’s taxable value.
Tree Growth - If you own at least 10 acres of land and use that land for commercial foresting purposes, you may qualify for this tax relief program. The program requires a professional forest management and harvest plan and per acre valuations are determined on an annual basis.
Working Waterfront - If your property abuts tidal waters and at least 50% is related to providing access to or in support of commercial fishing or aquaculture activities, you can take advantage of this classification.
Kindly keep in mind that while we wear a lot of hats as real estate agents, we’re not tax professionals and always recommend talking to an accountant for help with any tax-related questions. For additional information on these and other property tax exemptions, including more details on qualification and how to apply, visit Main Revenue Services.
ABOUT THE AUTHOR:
Faith Irek, Sales Agent, REALTOR®, Breakwater Realty Group Co-Founder
Faith grew up on an equestrian farm outside of Portland, Maine and returned to the state after graduating from the University of New Hampshire with a Business degree. She brings over 17 years of high-level marketing and digital management experience to her real estate career and enjoys creating effective and creative promotional campaigns that support Maine homeowners in the sale of their property. Faith is equally as devoted to finding her buyer clients homes that they both adore and feel safe in, and is committed to a client-forward approach that leaves no stone unturned in pursuit of the best deal possible.
Faith resides in Falmouth with her family. She enjoys live music, kayaking, golf, and is learning to both refinish furniture and to not kill her houseplants (one of which is far easier than the other!). She will drop everything to pet a dog and will never pass up an opportunity to visit a county fair. She is the former Corporate Vice President of the Hugh O'Brian Youth Leadership Maine chapter and enjoys finding new opportunities to support her neighbors in need of a helping hand.
207.233.8177 // faith@breakwaterrealtygroup.com