State & Local Tax Burden
In 2021, Maine’s tax burden remained unchanged at 11.7%.
No significant movement since the last available data
Benchmark: Maine’s tax burden will decline and move toward the New England average each year through 2030.
Overview
The percentage of total personal income paid in state and local taxes (property, sales, income, corporate, motor vehicle, and other taxes) is our tax burden measure. While taxes impose costs on individuals and businesses, they generate revenue for public services and investments. This measure compares tax levels and ability to pay; it can be reduced by lowering tax rates and by increasing income.
Since 2010, Maine’s state and local tax burden has remained at or below 12%, above the New England and U.S. averages. This figure does not account for sales and property taxes paid by out-of-state visitors and second-home owners. In 2021, Maine’s tax burden held steady at 11.7%. Meanwhile, the New England and U.S. averages rose slightly. Maine ranks 5th highest of the 50 states in state and local taxes as a percentage of income and 12th highest in tax collections per capita.
Fig. A
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State and Local Taxes as a Percent of Income
U.S. Census Bureau and U.S. Bureau of Economic Analysis
Fig. B
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State and Local Tax Burden Rank 2021 (1 is highest)
U.S. Census Bureau and U.S. Bureau of Economic Analysis