A median Maine home costs $341,900 (26th of 51). Borrowing 80% at 7.40% gives $2,248.88 per month once $259.25 of tax and $95.83 of insurance are added to $1,893.80 of principal and interest; at 5% down with PMI, budget $2,739.30.
Homestead exemptions and property tax relief
The homestead exemption takes up to $25,000 off the value of a primary residence once you have owned it for 12 months. Apply to the town assessor by April 1.
First-time buyer programs
MaineHousing's First Home loan for first-time buyers can come with Advantage assistance of $5,000 for down payment, closing costs or prepaid escrow. It requires a 1% contribution and homebuyer education.
Transfer and recording taxes
The transfer tax is $2.20 per $500, split equally between buyer and seller, so about $752 each on a $341,900 home. Above $1 million, an additional $3.80 per $500 applies to the part over $1 million.
Closing costs to plan for
Buyer costs include half the transfer tax, title and lender fees, and inspections for wells, septic systems, radon and oil tanks.
When property tax bills are due
Maine towns and cities set their own tax due dates, and many split the bill into two or four payments, so check the municipal calendar before you size escrow. The tax is based on the town's valuation as of April 1, adjusted by the town's assessment ratio. Towns that have not revalued recently may assess homes well below market, which affects how far the exemption goes.
Before you buy in Maine
The homestead exemption is worth up to $25,000 of just value, adjusted by the local ratio. You must be a permanent Maine resident who has owned the home as your primary residence for the 12 months before April 1, and you apply to the town assessor by April 1. A late filing counts for the next year, so a buyer who closes in summer usually waits almost two years for the first exemption. Lower-income residents can also claim the Property Tax Fairness Credit on their Maine income tax return (Form 1040ME, Schedule PTFC/STFC).
2026 loan limit in Maine
FHFA 2026 one-unit conforming limits: the $832,750 baseline covers each of the 16 counties. The typical $273,520 loan stays conforming.
Maine numbers used above
| Measure | Maine | U.S. |
|---|---|---|
| Median home value (ACS 2024) | $341,900 | $360,600 |
| Effective property tax rate | 0.91% (22nd highest) | 0.89% |
| Average HO-3 premium (NAIC 2023) | $1,150 | $1,737 |
| Median household income | $76,442 | $81,604 |
| Median gross rent | $1,210 | $1,487 |
| Income needed at 28% (20% down) | $96,381 | – |
Frequently asked questions
When can I get Maine's homestead exemption after buying?
Once you have owned the home as your permanent residence for 12 months before April 1. Apply to the town assessor by April 1.
How much is the Maine homestead exemption?
Up to $25,000 of just value, adjusted by the town's assessment ratio.
What is the Property Tax Fairness Credit?
A Maine income tax credit for qualifying residents who paid property tax or rent, claimed on Form 1040ME.
What is the median-home payment in Maine?
About $2,248.88 a month on a $341,900 home with 20% down at 7.40%, including tax and insurance.
Sources
- Maine Revenue Services, homestead exemption FAQ
- Maine Revenue Services, Property Tax Fairness Credit
- Maine Revenue Services, transfer tax
- Maine Revenue Services, homestead exemption
- MaineHousing First Home
- FHFA, 2026 conforming loan limits
- Census ACS 2024 1-year (B25077, B25103, B19013, B25064); NAIC homeowners report (2023); Freddie Mac PMMS.
See also: all states · house affordability · Maine paycheck