Maine's Property Tax Fairness Credit: Money Back for Renters and Owners
Maine gives part of your property tax or rent back through the income tax return, even if you owe no tax and don't otherwise have to file. For 2025 the credit is worth up to $1,000, or $2,000 if you or your spouse is 65 or older.
AT A GLANCE
|
What the credit does
The Property Tax Fairness Credit (PTFC) returns part of the property tax or rent you paid on your Maine home during the year. You claim it on your Maine income tax return for the year you paid the tax or rent.
Maine Revenue Services says you can get it whether or not you owe income tax. If the credit is bigger than your tax, the rest is refunded to you. State law makes it refundable after nonrefundable credits are applied.
That means retirees on Social Security, people with low wages and anyone with no taxable income can still get a check.
---
Who qualifies for the 2025 credit
According to Maine Revenue Services and the 2025 Schedule PTFC/STFC instructions, you must meet all of these:
You were a Maine resident for at least part of 2025.
You owned or rented a home in Maine and lived in it as your main home during the year.
You paid property tax or rent on that home during the year.
Your total income was under the limit for your filing status (see the table below).
Your property tax or rent was high enough compared with your income.
You aren't married filing separately. That filing status can't claim either fairness credit.
Property tax paid also counts amounts the State paid to your town for you under the Property Tax Deferral Program.
Income limits for 2025
"Total income" here is broader than taxable income. It includes Social Security and railroad retirement benefits, interest and pensions, and adds back certain losses.
Filing status | No qualifying children or dependents | One | More than one |
|---|---|---|---|
Single | $63,750 | $63,750 | $63,750 |
Head of household | $82,500 | $82,500 | $101,250 |
Married filing jointly or qualifying surviving spouse | $82,500 | $101,250 | $101,250 |
Your income must be less than the figure shown. If you or your spouse is 65 or older, you don't use this table; a single, higher limit applies instead. The 2025 instructions list that senior limit as $100,000 in one place and $102,500 in another, so call Maine Revenue Services if you're near it.
---
How the credit is calculated
The math is easier than it looks. Schedule PTFC/STFC walks you through it:
Property tax: Enter the property tax you actually paid on your home in 2025, not the amount assessed.
Rent: Enter the rent you paid. If it included heat, utilities or furniture, subtract that amount. If your landlord can't tell you what portion that was, subtract 15% of the rent instead.
Turn rent into "property tax": Multiply your net rent by 15%. That's the share of rent the state treats as property tax.
Apply the cap (benefit base): Use the smaller of your total from steps 1 to 3 or your maximum benefit base from the table below.
Subtract 4% of your total income. Whatever is left, up to $1,000 ($2,000 at 65+), is your credit.
Filing status | 0 children or dependents | 1 | More than 1 |
|---|---|---|---|
Single | $2,550 | $2,550 | $2,550 |
Head of household | $3,300 | $3,300 | $4,050 |
Married filing jointly or qualifying surviving spouse | $3,300 | $4,050 | $4,050 |
Either spouse 65 or older | $4,100 | $4,100 | $4,100 |
Because only 15% of rent counts, rent has to exceed 26.67% of your income before 15% of it beats the 4% threshold. That's where the rent test comes from.
If the credit exceeds the amount of your individual income tax due for the tax year, the excess amount of credit will be refunded to you. (Maine Revenue Services)
Two worked examples
These are our own examples, following the 2025 schedule line by line:
A single renter under 65 with $30,000 of total income paid $12,000 in rent that included heat, amount unknown. Subtract 15% ($1,800) to get $10,200. Take 15% of that: $1,530. Subtract 4% of income ($1,200). The credit is $330.
A married homeowner couple, one spouse 65, with $40,000 of total income paid $3,500 in property tax. That's under the $4,100 cap. Subtract 4% of income ($1,600). The credit is $1,900, under the $2,000 senior maximum.
---
Renters: what counts as rent
The instructions are specific about what goes on line 5a:
Include all rent you paid on your Maine home during the year, for each place you lived if you moved.
Include Workfare payments from your town that were used to pay your rent.
Don't include rent a government program paid for you.
Don't include mortgage payments or room-and-board payments. Neither counts as rent.
Sharing a place? Include only your own share of the rent.
Running a business out of part of it? Count only the rent for the part you live in.
Own a mobile home in a park? You can claim both: the property tax on the home and the lot rent.
Keep your rent receipts or canceled checks. Maine Revenue Services may ask for them before it issues a refund. You'll also list your landlord's name and phone number on the schedule.
Homeowners: what counts as property tax
Count tax on your house and up to 10 acres of land. If you have more land, your town assessor can give you the figure.
Don't count interest, special assessments, or tax on property other than your main home.
If you own a multi-unit building and live in one unit, count only that unit's share. In a three-unit building, that's one-third.
If you transferred the home to someone under an agreement that lets you keep living there, you can still claim the tax you paid while you live there.
---
Disabled veterans can double it
If you or your spouse is a veteran rated 100% permanently and totally disabled by the VA for service-connected disabilities, you get an additional credit equal to the regular one. The combined credit can be up to $2,000, or $4,000 at 65+, but it can't be more than the property tax and rent you counted.
Enclose a copy of your VA Rating Decision Letter or VA Benefit Summary Letter with the schedule.
---
The Sales Tax Fairness Credit on the same form
Line 17 of the same schedule claims a separate refundable credit for lower-income residents. For 2025 it's worth up to $280, depending on income and household size. Total income can't be more than:
Filing status | 2025 income limit |
|---|---|
Single | $32,950 |
Head of household | $51,700 |
Married filing jointly or qualifying surviving spouse | $63,950 |
The full sliding-scale tables are in the instructions. You can't take it if you're claimed as a dependent on another person's return. Part-year residents must prorate it.
---
How to claim it
Get Form 1040ME and Schedule PTFC/STFC for the year you paid the tax or rent. MRS posts schedules for 2022 through 2025.
If you're filing only to get these credits and don't file a federal return, follow the short version in the instructions. Fill in your name, address and Social Security number, check Box A, enter your filing status, residency, age boxes and dependents.
Report your total income on lines 1a to 1e (no federal return) or 2a to 2d (federal filers).
Complete the property tax and rent lines, then the benefit-base and 4% steps.
Carry the credits over. The PTFC goes on Form 1040ME, line 25d, and the sales tax credit on line 25e.
Choose how to get paid. A refund is mailed unless you fill in the direct deposit lines (34c to 34e).
Before you file
☐ SSA-1099 or RRB-1099 for Social Security or railroad retirement benefits
☐ W-2s and 1099s for wages, pensions, interest and other income
☐ Property tax receipts showing tax actually paid in the year
☐ Rent receipts or canceled checks, and your landlord's name and phone number
☐ Your VA rating letter, if you're claiming the veteran amount
Missed a year?
Maine Revenue Services' FAQ says that if you're due a refund, you generally must file a claim within 3 years of the original due date of the return, or 3 years from when the tax was paid, whichever is later. If you skipped the credit in a recent year, check whether that window is still open.
---
What changes for 2026
State law raises the maximum credit for people under 65 from $1,000 to $1,500 for tax years beginning on or after January 1, 2026. That applies to returns you file in 2027. The 65+ maximum stays at $2,000.
Income limits and benefit-base caps for 2026 will be on the 2026 schedule, which wasn't on the MRS credit page when we checked on October 30, 2026.
---
Who to call
Individual income tax questions: (207) 626-8475, income.tax@maine.gov
Refund information and general questions: (207) 624-9784
Forms by phone: (207) 624-7894
Mail: Maine Revenue Services, PO Box 1060, Augusta, ME 04332-1060
Standard phone hours are weekdays, 9:00 a.m. to 12:00 p.m. Returns and payments can be dropped off at 51 Commerce Drive in Augusta.
WHAT TO DO THIS MONTH
|
More help
Related guides
Official sources
Last checked: October 30, 2026. Eligibility rules, income limits, benefit-base caps, credit maximums and filing steps come from the 2025 Schedule PTFC/STFC, the MRS credit summary, 36 M.R.S. §5219-KK and the MRS contact page.
This is general information, not tax advice. For your situation, contact Maine Revenue Services or a tax professional.
Comments