Maine's Senior Property Tax Programs After the LD 290 Repeal: Deferral, Fairness Credit, and the LD 1144 Reinstatement Question

Q: My Maine income is $90,000 — does the Property Tax Deferral Program apply to me?

No — the Deferral Program income cap is $80,000, and there's also a $100,000 liquid-asset test that excludes many seniors with substantial retirement savings. The Property Tax Fairness Credit may still apply on a sliding scale even at higher incomes, since the credit considers property tax burden relative to income rather than imposing a hard income cap. Run the credit calculation through Maine Revenue Services' online estimator or your tax preparation software.

Updated April 2026

Maine's senior property tax landscape changed dramatically in mid-2023 when the Legislature repealed LD 290, the Property Tax Stabilization for Senior Citizens program that had taken effect in August 2022. LD 290 had let any Maine senior 65+ with 10 years of residency freeze their property tax at the prior year's level regardless of income — a structure the Legislature concluded disproportionately favored higher-value properties without an ability-to-pay test. In its place, the Legislature expanded two existing programs: the Property Tax Deferral Program for income-eligible seniors and the Property Tax Fairness Credit (raised to up to $2,000). A subsequent reinstatement bill, LD 1144, would re-establish a means-tested freeze with a $900,000 just-value cap; its enacted-law status as of this writing is unclear, so verify with Maine Revenue Services before relying on it.

The Universal $25,000 Homestead Exemption (All Owner-Occupants)

Available to any Maine owner-occupant of a primary residence: the Homestead Exemption shields $25,000 of just value from property tax. Not senior-specific; applies regardless of age. Once granted, auto-renews. File once with the municipal assessor (in Maine, towns and cities — not counties — administer property tax assessments) by April 1.

Property Tax Fairness Credit (Maximum $2,000)

Filed with Maine Revenue Services as a state income tax credit (not directly against the property tax bill). Available to Maine residents whose property tax exceeds a percentage of household income. The 2023 expansion raised the maximum credit from $1,500 to $2,000. Eligibility scales by income and household size; seniors qualify on the same terms as non-seniors but the credit's structure (a percentage-of-tax-above-percentage-of-income calculation) typically benefits lower-income households disproportionately, which often includes retirees on fixed income.

Property Tax Deferral Program (Senior-Specific, Income- and Asset-Tested)

Reactivated and expanded after the 2008 financial crisis suspension; the 2023 expansion broadened eligibility further. Lets qualifying seniors defer their property tax bill — the state pays the municipality and records a lien against the home, repaid when the property is sold or transferred or the homeowner's estate settles.

Eligibility:

Age 65 or older, OR permanently disabled regardless of age.
Annual household income $80,000 or less.
Liquid assets $100,000 or less (this asset test is unusual among states' deferral programs).
Property is primary residence; homeowner has lived there as primary residence; no reverse mortgage on the property.

Apply with Maine Revenue Services. Deferred amounts accrue interest (the rate set annually); the state files a lien repaid from sale proceeds or estate settlement.

Is your Maine assessment correct?

Maine reassesses periodically and rates vary widely by municipality. The credit and deferral programs apply against your bill — but the bill depends on the underlying assessment. An assessment review is the lever for fixing the base.

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The LD 290 Repeal and the Status of LD 1144 Reinstatement

LD 290 (the Property Tax Stabilization for Senior Citizens program) was enacted in August 2022 and immediately popular — by the 2023 application window, large numbers of Maine seniors had filed to lock their property tax at the 2022-2023 level. The Legislature repealed the program on July 6, 2023, with effective date October 11, 2023, citing two concerns: (1) the program was income-blind, so high-net-worth seniors received the same benefit as low-income seniors, and (2) state reimbursement to municipalities was projected to balloon as more seniors enrolled. Existing 2023 applicants kept their 2023 freeze; no new applications were accepted.

LD 1144 (introduced in subsequent legislative sessions) would reinstate a similar program with two key changes: a $900,000 just-value cap (excluding higher-value homes) and clarification that only one homestead per property tax year is eligible. Whether LD 1144 is current law as of the most recent legislative session is the open question — the original Maine Revenue Services Property Tax Stabilization Program page still reflects the post-repeal status. Confirm current law with Maine Revenue Services or your municipal assessor before relying on the freeze being available.

Frequently Asked Questions

I locked my property tax under LD 290 in 2023. Did I lose the freeze when the program was repealed?

The 2023 freeze remained in effect for that tax year. After the repeal effective date (October 11, 2023), no new applications were accepted. Whether your 2023 freeze continued past tax year 2023 depends on the specific repeal mechanics — most pre-existing freeze recipients lost the freeze going forward, with property tax returning to current-assessment basis for tax year 2024 onward. Contact your municipal assessor for confirmation of how the repeal affected your specific case.

My income is $90,000. Does the Property Tax Deferral Program apply to me?

No — the Deferral Program income cap is $80,000. You also must have liquid assets of $100,000 or less, which excludes many seniors with substantial retirement savings. The Deferral Program is targeted at low-income, low-liquid-asset seniors; it's not a broad-eligibility program. The Property Tax Fairness Credit may still apply on a sliding scale even at higher incomes, since the credit calculation considers property tax burden relative to income rather than imposing a hard income cap. Run the credit calculation through Maine Revenue Services' online estimator or your tax preparation software.

If I take the Property Tax Deferral, what happens to my home?

The state pays your property tax bill to your municipality and records a lien against your home for the deferred amount plus accumulated interest. The lien is paid off when the home is sold, transferred, or the homeowner's estate settles. Heirs cannot avoid the lien — it's recorded against the property. If your goal is leaving the home unencumbered to heirs, the deferral program reduces what gets passed; if your goal is preserving liquidity during retirement, deferral converts a recurring cash expense into a future estate cost. The trade-off is genuinely individual.

Should I plan around LD 1144 being available for tax year 2026?

No — plan around the confirmed current programs (Homestead Exemption, Property Tax Fairness Credit, Deferral Program) and treat LD 1144 as a possible future addition. Until Maine Revenue Services updates its official Property Tax Stabilization Program page to reflect a new active program, the safer assumption is that no senior freeze exists. If LD 1144 (or a successor) does become law, file at the next opportunity. Don't delay claiming current available benefits in anticipation of a future program that may or may not arrive.