What Is the Cost of Living in Maine?

The cost of living in Maine encompasses a variety of expenses that can fluctuate based on location and individual lifestyle choices. Maine, known for its mix of urban centers, suburban communities, and expansive rural landscapes, presents a diverse economic picture. Understanding the financial implications of living in the state involves examining key categories such as housing, daily necessities, transportation, and personal spending.

Housing: The Primary Expense

Housing consistently represents the largest single expense for residents in Maine. The median sales price for single-family homes statewide reached approximately $425,000 in May 2025, marking a record high. This figure reflects a 6.5% increase from the previous year. However, the median sales price fluctuated in early 2025, dropping to $376,260 in March 2025 from $385,000 in January 2025, although it remained higher than the first quarter of 2024.

For those considering renting, the average rent for all property types in Maine stood at $2,000 as of August 2025. Rental prices vary depending on the number of bedrooms, with a median rent for a one-bedroom apartment being $829 per month and a two-bedroom apartment costing around $1,113 per month as of July 2024 data. Larger dwellings, such as three- and four-bedroom homes, had median costs of $1,342 and $1,441 per month, respectively.

Property taxes also contribute significantly to housing costs, particularly for homeowners. Maine’s average effective property tax rate is approximately 1.30%, which is above the national average of around 1.07%. The median annual property tax bill in Maine is about $2,598.25 across all 16 counties.

Daily Essentials: Food and Utilities

Grocery expenses in Maine generally align with or are slightly higher than national averages. An average individual in Maine might spend approximately $375 per month on non-restaurant food and beverages. Weekly spending on groceries for a household in Maine averages around $249.91. The overall New England region experiences some of the highest grocery costs nationwide.

Utility costs in Maine tend to be somewhat higher than the national average, primarily due to the colder climate and the necessity for extended heating during winter months. Basic services, including gas, electricity, water, and sewer, typically amount to around $392.73 per month, with internet and phone services increasing this to an average of $685.09 monthly. Heating sources vary, but heating oil averaged $3.33 per gallon statewide as of August 2025, and propane averaged $3.02 per gallon. Internet services typically range from $50 to $100 per month.

Getting Around: Transportation Costs

Transportation expenses in Maine reflect the state’s geography, where personal vehicles are often necessary outside of major urban centers. The average price per gallon for regular gasoline in Maine was about $3.44 as of July 2024. Annual transportation costs for individuals in Maine can range from $4,332 to $11,773.

Car insurance premiums in Maine are generally lower than the national average. Full coverage car insurance costs an average of $1,791 annually, or about $149 per month. For liability-only coverage, the average is around $999 per year, or $83 per month. These rates are influenced by factors such as age, driving record, and specific location within the state. Public transportation options are more robust in cities like Portland, but availability is limited in many rural areas.

Well-being and Personal Spending: Healthcare and Miscellaneous

Healthcare expenses form a significant component of the cost of living. For 2025, health insurance premiums for individuals in Maine are projected to increase by an average of 8.6%, while small group employer plans are set to rise by 9.4%. These approved increases are lower than initially proposed by insurers. An average Mainer spent $8,670 a year on healthcare in 2021. Employer-sponsored health insurance cost employees in Maine an average of $1,703 annually as of July 2024 data, with employers covering the remaining $6,290 of the total premium.

Beyond healthcare, miscellaneous personal spending categories cover a wide array of goods and services that contribute to daily life. These include personal care items, clothing, and various forms of entertainment. Costs for services like haircuts or gym memberships vary, as do expenses for leisure activities such as movies, events, or outdoor pursuits, which are popular in Maine. Childcare costs are also a consideration for families, with monthly expenses potentially ranging from $973 to over $1,622 per child. The total spending in these categories is highly dependent on individual choices and lifestyle.

The Tax Landscape and Regional Differences

Maine’s tax structure contributes to the overall cost of living, featuring a progressive state income tax. For tax year 2025, Maine’s income tax rates range from 5.8% to 7.15%. For single filers, the 5.8% rate applies to taxable income under $26,800, increasing to 6.75% for income between $26,800 and $63,450, and 7.15% for income exceeding $63,450.

The state sales tax rate in Maine is 5.5% for most tangible personal property and services, with no additional local sales taxes imposed by municipalities. Certain items, such as prepared food, short-term lodging, and some rental vehicles, are subject to an 8% sales tax.

The cost of living in Maine is not uniform across the state, showing significant regional differences. Urban centers like Portland typically have higher housing costs; for example, the median home sale price in Portland was $581,900 in February 2025, compared to a statewide median of $380,000-$385,000 during the same period. Rent in Portland can start around $1,372 for a one-bedroom apartment, while in Lewiston, it might be $650.

Coastal towns, often popular tourist destinations, also tend to command higher prices for housing and services. Conversely, rural inland areas generally offer more affordable housing and a lower overall cost of living. For instance, counties like Piscataquis have significantly lower median property tax bills compared to more populated areas such as Cumberland County. These geographical variations mean that a resident’s financial experience in Maine can differ considerably based on their chosen community.