The newly released January 2026 revenue forecast shows that Maine closed the latest reporting period with a surplus of $248.4 million for the 2026-2027 Biennium. This increase in revenues follows a passage of several new taxes enacted in 2025 through party lines votes.
While revenues came in above projections, this outcome is less a sign of anticipated economic growth and more a reflection of an increased tax burden on Maine families, workers, and small businesses. As lawmakers approach the budget process for 2026, this revenue report reinforces the need for tax relief, restraint in future spending, and economic policies that allow Mainers to keep more of what they earn, rather than relying on higher taxes to generate excess revenue.
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A Maine Income Tax Tutorial
Tax season is upon us, and Representatives Shelley Rudnicki (R–Fairfield) and Tracy Quint (R–Hodgdon), who both serve on the Joint Standing Committee on Taxation, recently filmed a video tutorial to help people learn how to fill out their tax forms. The tutorial was created primarily for older residents who often don’t file taxes because they believe they don’t have any income to report.
Reps. Rudnicki and Quint encourage filing even if you don’t have traditional “income.”
“Everyone should watch this video,” said Rep. Rudnicki, “to see if you qualify for the Property Tax Fairness Credit. Anyone over 65 should certainly check, including veterans, who may receive a double return if they are 100% disabled.”
Additionally, a bipartisan bill has been introduced to increase the value of the Property Tax Fairness Credit beginning with the 2025 tax year, which could provide even greater relief for Maine homeowners and renters
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Who is eligible for the Property Tax Fairness Credit?
To qualify, applicants must meet the following requirements:
- You must be a full-year Maine resident and occupy a homestead during the tax year.
- For individuals age 65 and older, income may be up to $100,000.
- For those under age 65, income limits vary based on filing status and number of dependents.
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Homeowners: Property taxes must exceed 4% of total income.
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Renters: Rent paid must exceed 26.67% of total income.
How to apply for the Property Tax Fairness Credit:
- File a Maine income tax return (Form 1040ME), even if your income is below the normal filing threshold.
- Apply during tax season (January 1–April 15) for the fastest processing.
- Claims may be filed up to three years after the original tax filing deadline.
For detailed income limits, forms, and assistance, visit Maine Revenue Services or contact them directly.
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