Updated October 2026
If you are thinking about retiring in Maine, this is the tax question that comes up first. Below is how Maine treats Social Security, pensions, IRA withdrawals and military retirement, with two worked examples. We are not tax professionals, so use this to plan and have a preparer check your own numbers.
Social Security in Maine
Maine’s Schedule 1S includes a subtraction for Social Security and Railroad Retirement benefits that are included in your federal adjusted gross income. That is how Maine leaves those benefits untaxed. How much of your benefit is taxable on your federal return is a separate calculation, and Maine does not change it.
The Pension Income Deduction
Maine does tax other retirement income, but it offers a deduction for pension income. Per the Maine Revenue Services FAQ:
- 2025 amount: up to \$48,216 per taxpayer, and the same for a spouse.
- Social Security reduces it. The amount is reduced by all taxable and nontaxable Social Security and Railroad Retirement benefits you receive. If your benefits are \$48,216 or more, you get no deduction.
- What counts as pension income: qualified pension plans, employee annuities, eligible deferred compensation plans, IRAs (including Roth and SIMPLE) and SEPs.
- Paperwork: you complete the Pension Income Deduction Worksheet and attach it to your return.
Starting with tax year 2025, the deduction phases out at higher incomes. MainePERS lists the thresholds as federal AGI above \$125,000 for single filers and above \$250,000 for joint filers. For 2026, the amount is published each year by Maine Revenue Services. Some sites list a higher 2026 figure, but we could not confirm it with the state, so check the current worksheet.
Two Simple Examples
These use the 2025 amount and ignore the phase-out. They are our arithmetic, not tax advice.
- Social Security plus a pension: \$30,000 of Social Security and \$20,000 of pension income. The deduction is \$48,216 minus \$30,000, or \$18,216. About \$1,784 of the pension is left as Maine taxable income, before any other deductions.
- IRA withdrawals and no Social Security yet: \$60,000 of IRA withdrawals. The deduction is the full \$48,216, which leaves \$11,784.
The point is that Social Security is not taxed, but claiming it uses up room in the pension deduction.
Military Retirement
Military retirement benefits, including survivor benefits, are fully exempt from Maine income tax for tax years beginning on or after January 1, 2016. Social Security does not reduce that exemption.
If You Are Moving to Maine
You are a Maine resident if you are domiciled here, or if you keep a permanent place of abode in Maine all year and spend more than 183 days here. In the year you move, you are a part-year resident. The state says part-year residents, nonresidents and safe harbor residents use their total federal AGI and claim a nonresident credit on Schedule NR. A tax preparer can walk you through your first year.
Other Costs Retirees Ask About
- Property tax: rates vary a lot by town. See our Maine property tax rates page and our Maine homestead exemption guide.
- Everyday costs: our Maine cost of living by city page covers housing, groceries and heating.
- Choosing a place: our guide to living in Maine compares regions and towns.
- Estate tax: Maine has its own estate tax in addition to the federal one. If your estate is large, ask Maine Revenue Services or an attorney.
Maine Social Security Tax FAQ
Does Maine tax Social Security benefits?
No. Maine lets you subtract benefits that are included in your federal adjusted gross income. They may still be taxed on your federal return.
Does Maine tax pensions and IRA withdrawals?
Yes, but a deduction covers up to \$48,216 per person for 2025, reduced by any Social Security or Railroad Retirement benefits you receive. It phases out at higher incomes starting in 2025.
Does Maine tax military retirement?
No. It has been fully exempt since 2016, including survivor benefits, and Social Security does not reduce the exemption.
Do I have to file a Maine return if I move here mid-year?
Most likely, as a part-year resident. Ask a tax preparer or Maine Revenue Services how your first year works.
Where do I get the current numbers?
Maine Revenue Services publishes the yearly pension deduction worksheet and rates. Their phone number is 207-626-8475.
Our details come from the Maine Revenue Services individual income tax FAQ, Maine’s 2024 Schedule 1S and the MainePERS page on the pension income deduction, checked in October 2026. Tax figures change every year, and the pension deduction amount and phase-out thresholds above are for tax year 2025, so confirm the current ones before you file.