Closing Costs in Maine 2026: Buyer & Seller Guide
Maine taxes each deed at $2.20 per $500 of value, half on the seller and half on the buyer by statute. Since November 1, 2025, value above $1 million pays another $3.80 per $500. Deeds to buyers in MaineHousing’s first-time buyer loan programs are exempt for both sides.
The $2.20-per-$500 deed tax and the $1 million tier
The tax sits in 36 M.R.S. § 4641-A and reaches “each deed by which any real property in this State is transferred.” That section sets a single rate schedule for property anywhere in the state; chapter 711-A is Title 36’s only real estate transfer chapter in force. The county register of deeds computes it and collects it when the deed is offered for recording, working from the declaration of value that must travel with the deed (§§ 4641-B, 4641-D).
The base is “value,” which for an ordinary sale means the actual consideration. Under § 4641(1), consideration “includes the amount of any mortgages, liens or encumbrances thereon, regardless of whether the underlying indebtedness is assumed by the grantee.” The rate runs per $500 “or fractional part of $500,” so a price of $350,100 is taxed as 701 units, not 700.
The $3.80 layer was added by Public Law 2025, chapter 388, Part V, and applies to the portion of value over $1,000,000 for transfers on or after November 1, 2025. The 2026 session did not amend § 4641-A.
| Sale price | How it is computed | Total tax | Each side’s half |
|---|---|---|---|
| $350,000 | 700 × $2.20 | $1,540 | $770 |
| $1,250,000 | 2,500 × $2.20 + 500 × $3.80 | $7,400 | $3,700 |
Both rows match Maine Revenue Services’ transfer tax chart.
Who owes which half
Section 4641-A(1)(B) reads: “The tax is imposed 1/2 on the grantor and 1/2 on the grantee.” Maine Revenue Services describes the grantor as the seller and the grantee as the buyer. If your purchase and sale agreement says anything different about the transfer tax, read that clause before you sign.
Deeds that owe nothing
- MaineHousing first-time buyer loans. § 4641-C(22) exempts deeds to purchasers who receive financial assistance through MaineHousing’s first-time home-buyer mortgage loan programs, and says the exemption “applies to both the buyer and the seller.” Bulletin 31 lists the qualifying programs: First Home Loan Advantage, First Home Multi-Unit Advantage, First Generation, First Generation Mobile Home and Salute ME.
- Family deeds with no price. Deeds between spouses, parent and child, or grandparent and grandchild “without actual consideration,” and deeds between spouses in divorce proceedings (§ 4641-C(4)).
- Transfer on death deeds (§ 4641-C(21)) and deeds that only correct an earlier recorded deed without new consideration (§ 4641-C(3)).
A family or MaineHousing deed still needs a declaration of value stating the reason for the exemption (§ 4641-D). Transfer on death and corrective deeds are excused from filing one.
Your mortgage adds recording fees, not a tax
Mortgage deeds, discharges and partial releases are exempt from the transfer tax under § 4641-C(2). Maine’s tax code, Title 36, has no chapter that taxes mortgages or promissory notes. What the mortgage does cost at the registry is a second recording fee.
Registry of deeds: one flat fee per document since January 2026
Since January 1, 2026, 33 M.R.S. § 751(1) charges a flat fee per instrument: $35 for private filers and $25 for the State or a municipality. On top of that, § 752 says a register “may collect a surcharge of $5 per document” for records preservation, so it varies by county.
Cumberland County’s registry charges it, listing “All other documents = $40.00 flat fee ($35 + $5 surcharge).” A deed plus a mortgage recorded there costs $80.
Title premiums are each insurer’s filed rates
Maine’s rate-filing chapter covers title insurance (24-A M.R.S. § 2302(1)(D)). Under § 2304-A, every insurer files its rates with the Superintendent of Insurance at least 30 days before the stated effective date, and the Superintendent must act within 30 days of receipt unless the filer asks for more time. Compare quotes from more than one title agent.
Who can run the closing table
Maine’s real estate withholding statute defines the person “responsible for closing the transaction” as “any attorney, escrow company or title company” (36 M.R.S. § 5250-A(1)(B)). Separately, 4 M.R.S. § 807 makes practicing law without admission to the Maine bar a Class E crime, and the section does not define what practicing law covers.
Out-of-state sellers: 2.5% held back at closing
When the seller is not a Maine resident, the buyer must withhold “2 1/2% of the consideration” and send it to the State Tax Assessor within 30 days (§ 5250-A(2)). On a $400,000 sale that is $10,000, credited against the seller’s Maine income tax. No withholding is needed if:
- the seller certifies, under penalty of perjury, Maine residency on the transfer date;
- the price is under $100,000 (sales on or after January 1, 2021);
- Maine Revenue Services has certified that no tax is due or that the seller posted adequate security.
The closing agent may charge for this only if it actually withholds and remits, and then no more than $25 (§ 5250-A(8)).
MaineHousing money toward cash to close
As read on MaineHousing’s pages on September 24, 2026:
- Advantage is a “Down Payment & Closing Cost Assistance Option” of $5,000 for First Home, Salute ME and Mobile Home Self-Insured borrowers. The summary sheet says “No second mortgage required.” The borrower must put in at least 1% of the loan amount (a gift is allowed) and finish a hoMEworks-approved homebuyer class before closing.
- First Generation “provides $10,000 toward the cash you need for closing” for borrowers who never lived in a home owned by a parent or legal guardian, or who were in foster care. It requires a financial literacy class and a homebuyer class, plus the same 1% contribution.
Both run through MaineHousing-approved lenders, with income and purchase-price limits. First Home Loan borrowers must not have owned their principal home in the past three years, and the minimum credit score is 640. First Home Loan Advantage and First Generation are both on Bulletin 31’s list of programs covered by the § 4641-C(22) exemption, so the seller skips their half of the transfer tax too. Use the down payment estimator or get a mortgage pre-approval before you choose a lender.
More on Maine and nearby states
- Maine real estate guide
- Homeowner insurance guide for Maine
- Closing costs by state
- Mortgage payment calculator
- Closing Costs in New Hampshire 2026
- Closing Costs in Vermont 2026
- Closing Costs in Massachusetts 2026
Frequently Asked Questions
My buyer is using MaineHousing’s Advantage or First Generation program. Do I still pay my half of the transfer tax?
No. When the buyer receives assistance through one of MaineHousing’s first-time home-buyer mortgage loan programs, § 4641-C(22) exempts the deed for both the buyer and the seller. The exemption must be claimed on the declaration of value.
What is the transfer tax on a $1.5 million house in Maine?
$10,400 in total, or $5,200 for each side. That is $6,600 at $2.20 per $500 on the full price, plus $3,800 at $3.80 per $500 on the $500,000 above $1 million. This example comes from Maine Revenue Services’ Bulletin 31.
I’m giving my house to my son. Is there transfer tax?
Not if he pays nothing for it. § 4641-C(4) exempts deeds between parent and child “without actual consideration.” If he pays any price, the deed is taxed on that price, and a nominal price can be taxed on market value instead (§ 4641(3)).
I live in Florida and am selling my Maine house. Will money be held back?
Yes, unless an exception applies. The buyer must withhold 2.5% of the price and remit it to Maine Revenue Services. Exceptions include a price under $100,000 or a certificate from Maine Revenue Services reducing or waiving the amount.