Cost of Living in Maine
Things cost about ▼ 3% less in Maine than the national average.
What Things Cost in Maine
Compared to the US national average
See raw index numbers
US national average = 100. Source: BEA Regional Price Parities 2023.
Maine's cost of living runs about 8-9% above the national average, driven by heating costs, groceries, and healthcare rather than housing. Portland has emerged as one of New England's most desirable small cities, with a nationally recognized food scene, a beautiful waterfront, and a creative economy that attracts remote workers and entrepreneurs. Housing in Portland has climbed sharply, but the rest of Maine remains moderate. The state's appeal is lifestyle rather than financial: coastline, forests, low crime, and a pace of life that feels deliberately chosen. The financial case for Maine depends heavily on where you are coming from.
Maine at a Glance
Taxes in Maine
Maine's state income tax tops out at Up to 7.15%. The combined sales tax averages 5.5%. Property taxes run about 1.09% of home value, which on a $310,000 median home means roughly $3,379/year.
Cities in Maine
Ranked from least to most expensive. Index 100 = national average.
Explore Maine
FAQ About Maine
Portland has become the most expensive city in Maine, with median home prices exceeding $588,200 and rents that have risen sharply. By national standards it is still more affordable than most desirable coastal cities (far cheaper than Portland, Oregon or any comparably sized city in California). The rest of Maine, including Lewiston, Bangor, and Augusta, is significantly more affordable than Portland.
Maine has a graduated income tax with rates from 5.8% to 7.15%. The top rate applies to income above $58,050 for single filers. Social Security is exempt, and there is a $25,000 pension income deduction for residents 65 and older. The overall tax burden is above the national average when combined with property taxes averaging 1.24%.
Heating is a major budget item in Maine. Most homes use heating oil, and a typical household spends $2,000 to $4,000 per heating season depending on home size, insulation, and winter severity. This cost is essentially invisible in Sun Belt states and represents a meaningful addition to monthly expenses from October through April. Heat pumps are becoming more common and can reduce costs by 30-50%.