Maine real estate transactions are subject to transfer tax under 36 M.R.S. §4641-A, based on the value of the property. This tax is split equally between buyer and seller, and collected by the Registry of Deeds at the time the deed is recorded. However, real estate transactions in Maine over $1 million will soon be subject to a significantly higher rate of transfer tax. Beginning November 1, 2025, the Real Estate Transfer Tax (RETT) rate will increase nearly threefold—from $2.20 per $500 to $6.00 per $500—for consideration over $1 million, following the passage of LD 210.
The new transfer tax rates, effective November 1, 2025, are as follows:
- Up to $1,000,000: $2.20 per $500 (unchanged)
- Over $1,000,000: $2.20 per $500 for the first $1,000,000, plus $6.00 per $500 on the amount above $1,000,000
For example, a property with a sale price of $3,000,000 formerly would have had a transfer tax of $4,400 for the first $1,000,000 value, plus $8,800 for the additional $2,000,000 value, totaling $13,200. With the new rate, the property would have the same transfer tax of $4,400 for the first $1,000,000 value, but the additional $2,000,000 value will increase to $24,000, totaling $28,400—more than doubling the total transfer tax at an additional cost of $15,200.
Timing Matters!
For transactions over $1 million, parties should consider closing before October 31, 2025, to avoid the higher tax rate. Transactions at or below $1 million remain subject to the current rate.
Next Steps
If you are advising clients with upcoming transactions exceeding $1 million that will not close before the November 1, 2025 effective date, please be sure they are aware of this increased closing cost.
Our real estate attorneys are here to help. For questions related to the new Maine transfer tax rates or general legal guidance, contact Suzanne Breselor Lowell at slowell@bernsteinshur.com or Pete Van Hemel at pvanhemel@bernsteinshur.com today.