How Much Does It Cost to Live in Maine?

The overall cost of living in Maine reflects a blend of economic conditions, individual financial choices, and prevailing market dynamics. Costs can differ significantly based on whether one chooses to live in an urban center, a quiet rural town, or along the popular coastline.

Housing Expenses in Maine

Housing represents a substantial portion of living expenses in Maine, with costs varying across regions and dwelling types. As of August 2025, the average rent for an apartment statewide is approximately $1,717 per month. Studio apartments average $1,587, one-bedrooms $1,717, two-bedrooms $1,866, and three-bedrooms $2,144 monthly.

Rental prices fluctuate by city; Portland one-bedroom apartments start around $1,372, while Lewiston offers more affordable options at $650. Median home sales prices across Maine averaged $415,600 as of January 2025, rising to $400,000 in April 2025.

Property taxes are a significant homeownership cost, with Maine’s effective rate at approximately 1.24%. Property taxes are assessed locally, based on home value. Maine offers a Homestead Exemption program, reducing a home’s assessed value by $25,000 for qualifying permanent residents who have owned their home for at least 12 months. This exemption can directly reduce the annual property tax bill.

Daily Living Costs

Daily living expenses include food costs. A single resident typically spends about $386.83 per month on groceries, totaling $4,642 annually. For a family of four, these costs can increase to $1,137 per month. Dining out adds to expenses, with residents spending around $80.67 weekly on food consumed outside the home.

Utility costs encompass electricity, heating, water, and internet services. Maine’s overall utility expenses are generally below the national average. Heating costs fluctuate seasonally given Maine’s climate, with common sources including oil, natural gas, and electricity.

Transportation expenses cover fuel, vehicle insurance, and public transit. The average price for a gallon of regular gasoline in Maine was about $3.44 as of July 2024. Car insurance rates are relatively low; full coverage costs around $1,631 per year, while minimum coverage averages $418 annually. Public transportation is more prevalent in urban areas, but limited in rural parts of the state.

Healthcare and Insurance

Healthcare costs are driven by health insurance premiums and out-of-pocket expenses. For 2025, individual health insurance premiums are projected to increase by an average of 8.6%, while small employer plans are expected to see an average rise of 9.4%. Actual premium increases can vary, with some individual plans seeing increases up to 26% and some small group plans up to 19%.

The average monthly premium for a Bronze health plan for a 30-year-old in Maine is approximately $451, which is higher than the national average. Out-of-pocket costs, such as deductibles, co-pays, and co-insurance, vary significantly based on the specific health plan chosen and medical services utilized.

Understanding Maine’s Tax Burden

Maine’s tax structure includes state income tax, sales tax, and property tax. The state employs a graduated income tax system with three tax brackets for 2025, ranging from 5.8% to 7.15%. The highest rate applies to single filers with taxable income of $63,450 or more, or married couples filing jointly with $126,900 or more. For the 2024 tax year, standard deductions are $14,600 for single filers and $29,200 for those married filing jointly.

Maine has a statewide sales tax rate of 5.5%, which applies uniformly across the state without additional local sales taxes. This tax is levied on tangible personal property and some services. Food for home consumption is typically exempt from sales tax.

Property tax is collected at the local level and contributes to municipal budgets. Maine also imposes an annual excise tax on vehicles, paid to the local municipality where the vehicle owner resides. This tax is calculated based on the vehicle’s manufacturer’s suggested retail price and its age, with newer vehicles generally incurring higher excise taxes.

Regional Cost Variations

The cost of living in Maine is not uniform, with significant differences between urban, rural, coastal, and inland regions. Major urban centers like Portland have a cost of living 12.5% higher than the national average and 16% higher than the state average. Housing prices in Portland reflect this, with a median listing price of $650,000 in February 2025. In contrast, cities like Lewiston and Auburn offer more affordable housing options.

Coastal areas, especially popular tourist destinations, generally command higher prices for housing and goods compared to inland regions. This disparity is often due to increased demand, limited inventory, and the appeal of ocean proximity. Inland towns often provide more affordable housing and a quieter environment.

Seasonal fluctuations can also impact costs, particularly in tourist-heavy coastal areas where demand for services and accommodations may drive up prices during peak seasons. These regional differences highlight that location within Maine plays a substantial role in determining an individual’s overall expenses.