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Updated 2025 Tax Year

Lincoln County
Property Tax Guide

Everything you need to know about property taxes in Lincoln County, ME. Rates, due dates, exemptions, and how it affects your monthly payment.

10 Official Sources
8 min read
Quick Facts
Tax Rate
0.8% to 1.4% of assessed value (varies by municipality within Lincoln County)
Exemptions
5+ Available
Section 1

How Property Tax Works

Lincoln County, Maine operates under a property tax system that serves as the primary funding mechanism for essential local services including education, public safety, road maintenance, and county administration. Property taxes in Lincoln County are assessed at the municipal level, with each town and city setting its own tax rate based on local budget requirements and state-mandated assessments. The effective tax rates typically range from approximately 0.8% to 1.4% of assessed value, though this varies significantly by municipality within the county.

Property tax rates in Lincoln County vary considerably by location due to different municipal budget needs, school district requirements, and special taxing districts. Each municipality within Lincoln County - including towns like Boothbay Harbor, Damariscotta, Newcastle, and Waldoboro - establishes its own mill rate to fund local services. Additionally, properties may be subject to special assessments for services like fire districts, water districts, or municipal improvement projects, which can add to the base tax rate.

Section 2

What Makes Up Your Tax Bill

ComponentRate RangeDescription
Municipal Base Rate8-12 millsFunds general municipal operations, public safety, roads
School Assessment6-10 millsLocal school district funding and state education requirements
County Assessment1-2 millsLincoln County government services and facilities
Special Districts0.5-3 millsFire districts, water districts, municipal improvements
Total Effective Rate15.5-27 millsCombined rate varies by municipality and special districts

Note: Rates shown are approximate for fiscal year 2025-2026 and represent 1 mill = $1 per $1,000 of assessed value. Actual rates vary significantly by municipality within Lincoln County. Contact your local assessor for exact current rates and special district assessments that may apply to your specific property location.

Section 3

When Are Property Taxes Due?

For the 2025/2026 tax year in Lincoln County, property taxes are due in two installments:

Pro tip: If you pay through mortgage escrow, your lender splits these payments across your monthly mortgage. If you pay directly, set calendar reminders to avoid late penalties.
Section 4

Supplemental Tax Bills

Supplemental taxes in Lincoln County are additional property tax assessments that occur outside the regular annual assessment cycle. These are typically triggered by significant changes to a property during the tax year, such as new construction, major improvements, or changes in property ownership that reveal previously unassessed improvements. The supplemental tax is calculated by applying the current tax rate to the difference between the old and new assessed values, prorated for the portion of the tax year remaining after the change occurred.

For example, if you complete a $100,000 home addition in January and your municipality has a tax rate of 20 mills, you would owe a supplemental tax of approximately $2,000 ($100,000 × 0.020) for that tax year. The supplemental tax bill is typically issued within 60-90 days of the assessment change and has its own due date separate from regular property tax payments.

Example Calculation

Property Value: $300,000

  • Assessed Value: $300,000
  • Homestead Exemption Applied: $25,000 reduction in assessed value
  • Net Taxable Value: $275,000
  • Tax Rate (assuming 18 mills): $275,000 × 0.018 = $4,950
  • Annual Tax: $4,950 | Monthly Escrow: $413

Property Value: $600,000

  • Assessed Value: $600,000
  • Homestead Exemption Applied: $25,000 reduction in assessed value
  • Net Taxable Value: $575,000
  • Tax Rate (assuming 20 mills): $575,000 × 0.020 = $11,500
  • Annual Tax: $11,500 | Monthly Escrow: $958

Property Value: $1,000,000

  • Assessed Value: $1,000,000
  • Homestead Exemption Applied: $25,000 reduction in assessed value
  • Net Taxable Value: $975,000
  • Tax Rate (assuming 22 mills): $975,000 × 0.022 = $21,450
  • Annual Tax: $21,450 | Monthly Escrow: $1,788

Note: Homestead exemption requires annual application and is not automatic. Tax rates vary by municipality. Examples use estimated average rates for illustration purposes.

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Section 5

Escrow & Property Taxes

Most mortgage lenders in Lincoln County require borrowers to maintain an escrow account for property tax payments, particularly when the loan-to-value ratio exceeds 80%. The lender collects monthly escrow payments equal to 1/12 of the estimated annual property tax bill, plus a small cushion as allowed by federal law. These funds are held in a separate account and used to pay property taxes when they become due, typically by April 15th for most Lincoln County municipalities.

Lenders must provide annual escrow account statements showing all deposits and payments, and they may adjust monthly payments if property taxes increase or decrease significantly. Property owners should verify that their lender has current tax rate information, as rates can vary between municipalities and special districts within Lincoln County. If you pay off your mortgage or no longer have an escrow requirement, you become responsible for making property tax payments directly to your municipality by the established due dates.

How HonestCasa Helps
  • Understand whether your escrow is set correctly
  • See how rising taxes will change your monthly payment
  • Plan ahead instead of being surprised by "shortage" letters
Section 6

Frequently Asked Questions

Q: When are property taxes due in Lincoln County for fiscal year 2025-2026? A: Most municipalities in Lincoln County have property taxes due by April 15th, with some offering a July 15th extension for 2026 due to FEMA-designated storm relief. Real property taxes become delinquent if not paid in full by May 15th in most areas.

Q: What is the homestead exemption and how do I apply? A: The homestead exemption reduces your property's assessed value by up to $25,000 for tax purposes. This is an exemption that reduces assessed value, not a credit. You must apply annually, and the property must be your primary residence. Applications are available at your municipality or through Maine Revenue Services property tax forms.

Q: Are there other tax exemptions available that require application? A: Yes, Maine offers several exemptions including blind person's property tax exemption, veterans' exemptions, and renewable energy equipment exemptions. All require separate applications and have specific eligibility requirements. Contact your local assessor for available programs.

Q: How often are properties reassessed in Lincoln County? A: Maine law requires municipalities to assess properties at current market value, but reassessment schedules vary by municipality. Most towns in Lincoln County conduct comprehensive revaluations every 5-10 years, with annual updates for new construction and improvements.

Q: How do I appeal my property assessment? A: You can appeal to your local Board of Assessment Review, typically within 185 days of receiving your tax bill. If unsatisfied with that decision, you may appeal to the Maine Board of Property Tax Review or Superior Court within specified timeframes.

Q: What are the penalties for late property tax payments? A: Late payments typically incur interest charges starting the day after the due date, usually at rates set by state law (currently around 7-8% annually). After several months, properties may enter the tax lien process.

Q: Can I pay property taxes online in Lincoln County municipalities? A: Many municipalities in Lincoln County offer online payment options, though availability varies by town. Contact your local tax collector or check your municipality's website for available payment methods.

Q: What are special district taxes and do they apply to my property? A: Special district taxes fund services like fire protection, water districts, or municipal improvements. Whether they apply depends on your property's location within specific service areas. These taxes appear as separate line items on your tax bill and vary significantly by location within Lincoln County.

Q: Do I automatically receive all exemptions I'm eligible for? A: No, most exemptions and credits require annual applications and are not automatically applied. You must file the appropriate forms with deadlines that vary by program, typically between April 1st and August 1st of each year.

Q: How does the homestead exemption affect my taxes if I move? A: The homestead exemption only applies to your primary residence. If you move within Maine, you must apply for the exemption in your new municipality. You cannot claim homestead exemptions on multiple properties or on vacation homes and rental properties.

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