What is the cost of living in Maine? Everything you need to know

Summary

What is the average cost of living in Maine?

According to Bureau of Economic Analysis data for 2021, the average annual cost of living in Maine is $50,559.  

According to data gathered in 2024 from MERIC, the Missouri Economic Research and Information Center, the state ranks 43rd among states with the lowest to the highest cost of living. 

Maine's cost of living index for the third quarter of 2024 came in at 113.5.

The northern state is home to around 1.4 million people and is also a popular tourist destination.

How much does housing cost in Maine?

According to the Zillow Home Value Index, the average home value in Maine is estimated to be around $401,297 as of December 2024.  

It’s important to note that housing prices can significantly differ across various regions within the state.

Here are some examples of typical home prices based on Zillow's data: 

The monthly rental price ranges across the state for those considering renting in Maine.

According to Zillow Rentals Data, the median rent for all bedrooms and all property types in Maine is $1,900. This is 6% below the national average.

How much do utilities cost in Maine?

Utility costs play a significant role in Maine's overall cost of living.

According to Forbes, the average monthly cost is around $432 and is broken down as follows.  

How much do grocery and food cost in Maine?

When it comes to groceries and food costs, Maine's prices generally match those found elsewhere in the United States.   

According to Zippia, those in Portland pay over $372 on average each month.   

According to 2021 data from the Bureau of Labor Statistics, the average annual spending on food at home for US households is $5,259, or about $438 per month.   

What are the average transportation costs in Maine?

Transportation costs, including gas prices and vehicle maintenance, impact Maine's overall cost of living.  

According to MIT, a single adult with no children can expect to pay upwards of $4,400 for transport each year. 

Gas prices in Maine are typically in and around the national average.

At the time of writing, Maine was just below the national average. These prices fluctuate over time.   

It is also worth noting that prices can vary across different regions within the state.  

How much does healthcare cost in Maine?

The specific healthcare costs in Maine can vary depending on factors such as insurance coverage and individual circumstances.

Therefore, it is advisable to research and consult with healthcare providers and insurance companies to obtain accurate cost estimates. 

MIT estimates:  

What are the average childcare costs in Maine? 

For families in Maine, childcare can take up a significant portion of their income.

According to Child Care Aware of America, a childcare advocacy group, the average price of childcare for an infant in family childcare is $8,580, and for an infant in center-based childcare, it is $11,960.

For a toddler, this is $7,800 and $11,284, respectively.

 The group also found that childcare is one of the biggest expenses for most families. For a married couple, childcare costs for an infant would use 11% of their annual income. For a single-parent family, this rises to 35%.  

How much does retirement cost in Maine?

Maine exempts Social Security benefits and up to $10,000 of pension income from state income taxes, which can significantly reduce the tax burden for retirees. Additionally, Maine offers a property tax relief program for eligible residents aged 62 or older, providing further financial relief.

However, it's important to consider that Maine's cost of living is generally higher than the national average. This could be a concern for retirees on a fixed income, as everyday expenses such as housing, groceries, and healthcare may be more costly compared to other states.

Despite these challenges, Maine remains a popular destination for retirees.

According to the U.S. Census Bureau, in 2020, Maine had a population of approximately 1.3 million people, with more than 20% of the population being over the age of 65. This makes Maine one of the top states with a large retirement population.

For more information about retiring in Maine, click here.

How much tax will I pay in Maine? 

State income tax, sales tax, and property tax are three of the biggest taxes you'll pay in Maine.

Maine’s state income tax rates range between 5.80% and 7.15%

The sales tax rate in Maine is currently 5.50%. However, it's important to note that Maine also allows local municipalities to impose an additional local option sales tax, which can range from 0.50% to 1.50%. This means that the total sales tax rate can vary depending on the location within the state. 

Finally, property tax is paid at an effective rate of 1.28%.

The bottom line

The amount of money needed to live comfortably in Maine can vary depending on location, lifestyle, family size, and personal preferences. However, as the most expensive state in the US, you may need more than you first think. 

Consulting with a financial advisor can also provide valuable insights and assistance in managing expenses and financial planning. 

Get expert financial advice and learn more about the cost of living and how to manage it with an SEC-regulated advisor. Let Unbiased match you with the best financial advisor for your needs.