What the rule says
Maine imposes a state estate tax under Me. Rev. Stat. tit. 36, § 4101 et seq. Maine's framework occupies a middle ground between the most aggressive estate tax states (MA, OR) and the most lenient (CT, federal-conformed):
Mid-range threshold
The Maine estate tax exclusion is approximately $6.8 million per individual (indexed annually for inflation; the exact figure for the year of the decedent's death applies).
Maine's threshold is between: - Federal estate tax: ~$13.99M (2026) - Connecticut: $13.99M (federal-conformed) - New York: $7.16M - Maine: ~$6.8M (indexed) - Illinois: $4M - Minnesota: $3M - Massachusetts: $2M - Oregon: $1M
No portability
Like Massachusetts, Illinois, Minnesota, Oregon, and New York, Maine does not recognize federal portability of unused exclusion between spouses. Each spouse's exclusion is used at that spouse's death; it cannot be transferred.
Tax rates
Maine applies the tax progressively above the threshold. The top rate is 12% — lower than most other estate tax states (16% for MA, NY, MN, OR; CT 12% top rate is the comparable benchmark).
What this means in practice
Maine's mid-range threshold + no portability framework produces:
- Most Maine estates face no estate tax of any kind. With the threshold at ~$6.8M, most Maine residents pass wealth to heirs free of state estate tax. - High-net-worth Maine couples face Maine-specific planning. Without portability, the first-deceased spouse's $6.8M exclusion is wasted unless captured through bypass trust planning. - Federal estate tax for largest estates. Estates above ~$13.99M face both Maine and federal estate tax.
For an estate of $10 million: - No federal estate tax (below $13.99M) - Maine estate tax on $3.2M of taxable estate at progressive rates up to 12% — approximately $300,000-$350,000
How ME compares to other estate-tax states
| State | Exclusion | Portability | Top Rate | |-------|-----------|-------------|----------| | Connecticut | $13.99M (federal-conformed) | Yes | 12% | | New York | $7.16M | No (cliff) | 16% | | Maine | ~$6.8M (indexed) | No | 12% | | Illinois | $4M | No | 16% | | Minnesota | $3M | No | 16% | | Massachusetts | $2M | No | 16% | | Oregon | $1M | No | 16% |
Maine's framework is more favorable than the more aggressive states (MA, OR) but less favorable than CT's federal conformance. The 12% top rate is among the lower in the country.
What you can do about it
For Maine residents with substantial assets:
- Calculate Maine estate tax exposure. $6.8M threshold and no portability rule drive planning. - Use bypass trust planning for married couples to capture both spouses' exclusions. - Consider QTIP elections strategically. - Use lifetime gifting. Maine has no state-level gift tax. - Engage a Maine estate tax advisor.
For non-Maine residents considering relocation:
- NH, FL, TX, TN (no state estate tax) are common comparison destinations. - Maine real estate remains taxable even for non-resident decedents.
Who this affects most
Maine's estate tax framework is most consequential for:
- High-net-worth Maine residents whose estates approach $6.8M - Married Maine couples whose combined assets exceed $6.8M (no portability requires planning) - Estate planners coordinating Maine-specific exposure with federal planning
Maine's mid-range threshold makes the state estate tax less aggressive than MA/IL/MN/OR but more relevant than CT/no-tax states. Bypass trust planning is the standard response for married couples above the threshold.