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Does Maine Tax Capital Gains? (2026)

Updated October 4, 2026. Quick answer: Yes. Maine starts from federal adjusted gross income, so a gain is taxed on its three-bracket schedule, 5.8%, 6.75% and 7.15% for 2025. The only gain-specific item printed is a deduction of “$750,000 of gain recognized on the sale of a majority ownership interest” in a qualifying business transferred to affordable-housing owners.

Selling your home? How the state taxes the profit, from its own tax documents: Does Maine tax the profit from selling your home?.

The same question for dividends and interest: does Maine tax dividends and interest.

How Maine treats capital gains

ItemWhat the documents say
TreatmentPart of federal adjusted gross income, taxed on the graduated schedule; no general exclusion for gains printed
2025 rates, single and married filing separate5.8% below $26,800; $1,554 plus 6.75% of the excess over $26,800 up to $63,450; $4,028 plus 7.15% of the excess over $63,450
Narrow deductionUp to $750,000 of gain on the sale of a majority ownership interest in a qualified business that provides housing, sold to a cooperative affordable housing corporation or municipal housing authority

A $50,000 long-term gain

Taxed wholly at the lowest rate, a $50,000 gain is computed as $50,000 x 5.8% = $2,900; taxed wholly at the top rate, computed as $50,000 x 7.15% = $3,575. The bracket your total income reaches decides.

What changes in 2026

The 2025 schedule is the latest Maine document read, and it prints no 2026 schedule.

Federal rules

The state’s treatment sits on top of the federal one. The IRS explains the federal tax on gains in Topic no. 409, Capital Gains and Losses and Publication 550, Investment Income and Expenses.

Related: whether Maine taxes pensions, how Maine taxes retirement income, the capital gains tax by state table, and the federal capital gains tax calculator.

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Sources

Sources: the primary documents linked above, read on October 4, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the plan administrator or the agency itself is the right place to confirm anything consequential.

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