State & Local Tax Burden
In 2022, Maine’s tax burden rose 0.2 percentage points to 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. This measure can be reduced by lowering taxes, increasing incomes, or both. While taxes impose costs on individuals and businesses, they generate revenue for public services and investments.
In 2022, Maine’s tax burden was 11.7%, a 2% increase from 11.5% in 2021. Meanwhile, the New England and U.S. average tax burdens rose 9% and 7%, respectively. Maine’s tax burden was 7% above the New England average, compared to 19% in 2019 and 2020. Maine ranks 10th highest of the 50 states in state and local taxes as a percentage of income and 16th highest in tax collections per capita. This measure does not account for the portion of sales and property taxes paid by out-of-state visitors and second-home owners.
Fig. A
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State and Local Taxes as a Percent of Income
Source: U.S. Census Bureau and U.S. Bureau of Economic Analysis
Fig. B
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State and Local Tax Burden Rank 2022 (1 is highest)
Source: U.S. Census Bureau and U.S. Bureau of Economic Analysis