Maine Estate Tax: $7.16M Exemption and 8%-12% Rates

Maine starts taxing estates at $7.16 million for deaths in 2026, far below the federal line, then climbs through three tiers from 8 percent to 12 percent.1

That low threshold means an estate can owe Maine nothing in federal tax and still owe the state. This guide covers who pays, the exact rate brackets, what a sample estate owes, and how Maine's tax differs from the federal estate tax and from Medicaid estate recovery.

In This Guide

• Maine Estate Tax at a Glance
• How the Maine Estate Tax Works
• What a Taxable Maine Estate Owes
• Estate Tax vs. Inheritance Tax
• The Federal Estate Tax Is Separate
• This Is Not Medicaid Estate Recovery
• Frequently Asked Questions
• Next Steps

Maine Estate Tax at a Glance

Here is the whole picture in one place. The numbers below are for deaths in 2026.

The line that matters is the $7,160,000 exclusion. Maine indexes it for inflation, so it creeps up most years; it was $7,000,000 for 2025 and $6,800,000 for 2024.1 Maine has no separate inheritance tax, so heirs are not taxed on what they personally receive.

How the Maine Estate Tax Works

The estate tax is paid by the estate, out of the deceased person's assets, before heirs are paid. It applies only to value above the exclusion.

The exclusion. For 2026, the first $7,160,000 of a Maine taxable estate passes tax free.1 The exclusion is indexed for inflation, so confirm the current year's figure rather than assuming last year's number still holds.

The tiered rates. Above the exclusion, Maine applies three brackets: 8 percent on the first $3,000,000 of value over the line, 10 percent on the next $3,000,000, and 12 percent on anything above the exclusion plus $6,000,000.1 Only the value above the exclusion is taxed, and only the portion in each band is taxed at that band's rate.

The marital deduction. As under the federal estate tax, property passing outright to a surviving spouse generally qualifies for a marital deduction, so a first-to-die estate left entirely to the spouse typically owes no Maine estate tax regardless of size. The tax question usually arrives at the second death, when the estate passes to children or other heirs. A surviving spouse who inherits a jointly held home and accounts should not assume a Maine bill is due on that transfer; confirm the treatment with an estate attorney.

Filing. An estate above the exclusion files Form 706ME with Maine Revenue Services, due nine months after the date of death.1 A return can also be required when a federal estate tax return must be filed, even in some cases below the state line. The Maine Revenue Services estate tax page carries the current forms, the year's exclusion, and the bracket breakpoints.

If your estate is near or over the $7,160,000 exclusion, this is the point to bring in an estate attorney.1 The gap between Maine's line and the much higher federal one is exactly where planning, trusts, and gifting can keep an estate under the state threshold.

What a Taxable Maine Estate Owes

Maine does not tax the whole estate. It subtracts the $7,160,000 exclusion first, then applies the tiered rates to what is left.1

The tiers are marginal. Each band is taxed at its own rate, the way federal income-tax brackets work, so only the slice above the exclusion plus $6,000,000 is taxed at 12 percent.1

Two illustrations show how that plays out. These are hypothetical examples; your own numbers will differ.

• #1: a $10 million estate. Subtract the $7,160,000 exclusion and $2,840,000 is taxable. All of it falls in the first band, taxed at 8 percent, for about $227,200 in Maine estate tax.1
• #2: a $14 million estate. Subtract the exclusion and $6,840,000 is taxable. The first $3 million is taxed at 8 percent ($240,000), the next $3 million at 10 percent ($300,000), and the remaining $840,000 at 12 percent ($100,800), for about $640,800 in Maine estate tax.1

Estate Tax vs. Inheritance Tax

People use these terms interchangeably, but they are different taxes paid by different people.

• An estate tax is paid by the estate. It comes off the top before heirs receive anything. Maine has this one.
• An inheritance tax is paid by each heir on what they personally receive, often at a rate that depends on how closely related they are. Maine does not have this one.1

So Maine has exactly one state death tax, the estate tax, and the estate settles it. If you inherit from a Maine estate, you do not owe Maine a separate inheritance tax on your share.

The Federal Estate Tax Is Separate

Maine's estate tax sits alongside a separate federal estate tax. The two are filed and calculated independently.

For 2026, the federal basic exclusion is $15,000,000 per person and the top federal rate is 40 percent, filed on IRS Form 706.2 Because that federal exemption is so high, the large majority of estates owe no federal estate tax even when they owe a state estate tax in a state with a much lower exemption.2

Maine is exactly that kind of state. Its $7,160,000 exclusion is well below the federal $15,000,000 line, so an estate between roughly $7.16 million and $15 million can owe Maine estate tax while owing the IRS nothing.1,2 That gap catches families who assumed the high federal number was the only line that mattered.

This Is Not Medicaid Estate Recovery

Families often confuse the estate tax with Medicaid estate recovery, but they are unrelated.

Estate recovery is how a state seeks repayment from the estate of someone who received long-term-care Medicaid, typically by claiming against the home after death. It has nothing to do with the estate's size or the estate tax exclusion. A modest estate that owes zero Maine estate tax can still face a recovery claim, and a large taxable estate that never used Medicaid faces none. Our explainer on Medicaid estate recovery covers how that process works.

Next Steps

If your estate is comfortably under $7,160,000, Maine's estate tax is not your concern.1 If you are near or over the line, plan ahead, because the state line is much lower than the federal one. Settling an estate is hard enough while grieving; sorting the tax picture early spares your family a scramble later.

• Add up the whole estate, including life insurance, retirement accounts, and real estate, and compare it to the current $7,160,000 exclusion.1
• Watch the indexing, since the exclusion changes most years and the band breakpoints move with it.
• File on time. Form 706ME goes to Maine Revenue Services, due nine months after the date of death.
• Find an attorney. Use the Maine State Bar Association's Lawyer Referral Service at mainebar.org to reach an estate or elder-law attorney. For broader help orienting around care and costs, the federal Eldercare Locator at eldercare.acl.gov or 1-800-677-1116 can point you to local resources.

For the bigger financial picture, our guide to building a senior care funding plan ties taxes, benefits, and care costs together, and if a home is part of the estate, selling or renting a home for care covers that trade-off.

Learn More

Find personalized help understanding the Maine estate tax and your family's plan at brevy.com.

The information on Brevy.com is for educational purposes only and is not a substitute for professional legal, financial, or medical advice. Rules vary by state and program and change frequently. Always verify with the relevant agency or a qualified professional. Brevy is not a law firm, financial advisor, or healthcare provider.