Property tax burden across Maine is as high as it has ever been. Lawmakers have taken notice.

There’s one surefire way to ease your own property tax burden, though: a Homestead Exemption. The exemption shelters up to $25,000 in property value from taxation. Effectively, it’s a tax break.

Here’s what to know ahead of the April 1 deadline for applying for a Homestead Exemption.

How do I know if I’m eligible?

You can receive a Homestead Exemption if you:

• Have owned your Maine home, in your name or in a revocable trust, since at least April 1, 2025.
• Have established that home as your primary residence.

Vacation homes, second homes and other nonprimary residences aren’t eligible for a Homestead Exemption. Manufactured and mobile homes are, as long as it’s a primary residence.

How much can I save?

Short answer: Up to $25,000 of the value of your home will be exempt from property taxation.

Long answer: it depends on your town or city’s certified ratio — a number that takes some explaining.

Maine values property at both the local and state level.

• Municipalities conduct revaluations on an every-decade-or-so basis to balance tax burden more fairly. They are required to do so by the Maine Constitution: “all taxes upon real and personal estate, assessed by authority of this state, shall be apportioned and assessed equally according to the just value thereof.”
  • “Just value” means market value of an arms-length transaction — in other words, a sale between two people who don’t know each other.
• The state calculates a municipality’s market value annually by analyzing property sales and deed records of “declaration of value.”

Those numbers don’t often align. Almost always, the state valuation towers over a community’s outdated assessment of property values. The difference between those two numbers is the certified ratio.

And that impacts how much you can get from your Homestead Exemption. If your community assesses property at, say, 80% of the state’s valuation, you will only be eligible for 80% of the $25,000 total exemption, or $20,000.

For example, Augusta’s current certified ratio sits at 56%. The city plans to catch up this year.

How do I apply?

Before April 1, fill out an application and file it with your local assessor via your town office or city hall.

• If you already have a Homestead Exemption on your property, no need to re-file. It’s a one-time thing.
• If you’ve moved within Maine in the past year, you’ll need to fill out another application.
• Exemptions can stack on top of each other. If you are also eligible for other property tax exemptions, such as the veterans’ exemption or renewable energy equipment exemption, add them all together for cumulative effect.

What should I know for future years?

Lawmakers are considering changes to the Homestead Exemption and other property tax measures.

One proposal before the Legislature this year would increase the value that could be sheltered under the Homestead Exemption. That value has been capped at $25,000 since 2020.

If LD 140 passes, the exemption value would increase by $10,000 until it hits $85,000 in 2031. Stay tuned.