Maine’s Most Tax Friendly Towns For Retirees

According to a study conducted by SmartAsset, Augusta is in the top 10 of the friendliest tax places for retirees to live in Maine - more specifically, ranking 10th. Along with Augusta, Belfast came in 1st place, Skowhegan 2nd, and Waterville 3rd!

The study's method itself worked to figure out which areas would be the most friendly toward retirees with their taxing policies by looking at a few different factors. They observed the tax policies as if they were being applied to a retiree with a $50,000 income and went from there. The study took into account data from the differing taxes of income, property, sales, fuel, and Social Security to place each city on an index of 'friendliness'.

Also according to Smart Asset, Maine's property tax is slightly higher than the national average. Even though Social Security is not taxed in Maine, Smart Asset said, "Seniors who receive retirement income from a 401(k), IRA or pension will pay tax rates as high as 7.95%."

See if your city was in the line up below.