What Happens If I Don't Pay Property Taxes in Maine?

People who own real property must pay property taxes. The government uses these taxes to pay for schools, public services, libraries, roads, parks, and the like. Typically, the tax amount is based on a property's assessed value.

When homeowners don't pay their property taxes, the overdue amount becomes a lien on the property. A lien effectively makes the property act as collateral for the debt. All states have laws that allow the local government to sell a home through a tax sale process to collect delinquent taxes. So, if you don't pay your real property taxes in Maine, the tax collector can sell your property, or a percentage of it, at a tax sale.

But you'll have time before and after the sale to pay off the debt and keep the property. You have two years after the sale to get current before the purchaser can get a deed to the property. However, if you fail to pay your Maine property taxes during the two-year "redemption period," you will lose your home.

Maine property tax laws also allow the collector to instead pursue another method to enforce the lien: a tax foreclosure.

Is Maine a Tax Lien or a Tax Deed State?

Again, if you don't pay your property taxes, the past-due amount becomes a lien on your home. Each state has a different tax sale process to collect delinquent taxes.

Tax Deed States

In some states, the taxing authority sells the home if the homeowner doesn't pay off the debt. However, the purchaser might not get the deed to the property immediately. Sometimes, a redemption period must expire before the buyer gets the deed.

Maine is considered a tax deed state.

Tax Lien States

In other places, the taxing authority sells the tax lien, and the purchaser must foreclose or use other procedures to get a deed to the property.

Other Tax Sale Procedures

In other states, a tax foreclosure process is used, or the taxing authority executes its lien by taking title to the home. Maine law also allows tax lien foreclosures.

What Are the Consequences of Not Being Able to Pay Property Taxes in Maine?

If you don't pay your property taxes in Maine, you might lose your home through a tax sale or tax foreclosure process.

How the Maine Tax Sale Process Works

In Maine, if your taxes are unpaid, the collector can sell your home at a public auction on the first Monday in February after the tax was assessed. (Me. Rev. Stat. tit. 36 § 1071 (2025).)

Property Tax Sales in Maine

At the auction, your property is sold to the bidder willing to pay the taxes and costs due and accept the smallest fractional part of your property. If no bidder offers to take only a portion of the property, the whole parcel will be sold. (Me. Rev. Stat. tit. 36 § 1074 (2025).)

The winning bidder at the tax sale gets the right to eventually get ownership of your home if you don't pay off the debt.

How You'll Get Notice of a Maine Tax Sale

Before the sale, the collector must mail you notice about the sale and post the notice.

Notice of a property tax sale in Maine by mail. At least ten days before the sale, the tax collector must notify you, the homeowner who lives at the property, about the time and place of the sale:

• in person
• by registered mail, return receipt requested, or
• by leaving a notice at your home. (Me. Rev. Stat. tit. 36 § 1073 (2025).)

Notice of a Maine property tax sale by posting. The collector must also post the notice publicly. (Me. Rev. Stat. tit. 36 § 1071 (2025).)

How to Stop a Property Tax Sale in Maine

If you want to stop a Maine property tax sale from happening, you must pay the overdue taxes, plus costs, on or before the time of sale. (Me. Rev. Stat. tit. 36 § 1074 (2025).)

Can I Get My Home Back After a Maine Tax Sale?

In Maine, you get two years after the tax sale, called a "redemption period," to redeem the home. (Me. Rev. Stat. tit. 36 § 1078 (2025).) During this time, you can pay off the delinquent taxes, which will prevent the person or entity that bought your home at the tax sale from getting ownership of your property.

Cost to redeem. To reclaim your home after the tax sale, you must pay into the municipal treasury the full amount due, including taxes, costs, and charges, plus interest at the rate of 8% per year from the sale date. The treasurer will then pass the funds along to the bidder to reimburse them for the amount paid at the sale. (Me. Rev. Stat. tit. 36 § 1078 (2025).)

What happens if you don't redeem. If you let the two-year redemption period expire and don't pay the debt, the purchaser will get a deed to the home. (Me. Rev. Stat. tit. 36 § 1080 (2025).)

Maine Property Tax Law Changes in 2024 (Tax Lien Foreclosures)

Tax foreclosures are also possible in Maine. Maine amended its tax foreclosure process in 2024, following a 2023 U.S. Supreme Court decision (Tyler v. Hennepin County, Minnesota, 598 U.S. 631 (2023)), which created concerns about the legality of Maine's tax-acquired property sale procedures.

In that case, the U.S. Supreme Court unanimously held that if a government sells tax-acquired property and keeps more sales proceeds than are owed in delinquent taxes, interest, costs, it violates the Takings Clause of the U.S. Constitution's Fifth Amendment.

Tax Lien Certificates

The tax collector may, after the expiration of 8 months and within one year after the date of original commitment of a tax give notice stating the amount of the tax, alleging that a lien is claimed on the real estate to secure the payment of the tax, and demanding the payment of the tax within 30 days after service or mailing of the notice. After the expiration of the 30 days and within 10 days thereafter, the tax collector records a tax lien certificate in the land records. (Me. Rev. Stat. tit. 36 § 942 (2025).)

The municipality files the tax lien certificate in the land records to create a "tax lien mortgage" on the property. (Me. Rev. Stat. tit. 36 § 943 (2025).) Under Maine law, a tax lien mortgage may be foreclosed. (Me. Rev. Stat. tit. 36 §§ 942 through 943 (2025).)

Tax Lien Foreclosure Procedures

If the tax lien mortgage, together with interest and costs, isn't paid within 18 months after the date of the filing of the tax lien certificate in the registry of deeds, the tax lien mortgage is deemed to have been foreclosed and the right of redemption to have expired. (Me. Rev. Stat. tit. 36 § 943 (2025).)

Then, the municipality owns your home. It can the sell the property to a new owner, but it must return any excess sale proceeds to you. (Me. Rev. Stat. tit. 36 §§ 943, 943-C (2025).)

Redemption Period in a Maine Tax Foreclosure

The redemption period is 18 months after the tax lien certificate is filed in the registry of deeds. (Me. Rev. Stat. tit. 36 § 943 (2025).)

Notice Before Your Home Is Sold to a New Owner

After the redemption period expires, and at least 90 days before listing your property for sale, the municipal officer or their designee must send a written notice to the last known address of the former owner (you) by U.S. Postal Service certified mail, return receipt requested and by first-class mail, notifying the former owner of the sale. (Me. Rev. Stat. tit. 36 § 943-C (2025).)

The municipal officer or their designee must list the property for sale with a real estate broker or agent licensed in Maine, at the highest reasonable price at which the property is anticipated to sell. (Me. Rev. Stat. tit. 36 § 943-C (2025).)

What Happens to Surplus Funds After the Sale?

Following the sale to a new owner, the municipal officer must pay the former owner any sale proceeds that are in excess of:

• the sum of all taxes owed on the property
• the sum of all taxes that would have been assessed on the property during the period following foreclosure when the property is owned by the municipality
• all accrued interest
• fees, including advertising, mailing, recording, property listing and real estate broker's or agent's fees, to the extent that those fees aren't included in the broker or agent fee agreement
• any other expenses incurred by the municipality in selling, maintaining or improving the property, including, but not limited to, documented administrative costs and reasonable attorneys' fees
• the cost to the municipality of the lien and foreclosure process, including, but not limited to, reasonable attorneys' fees, and
• unpaid sewer, water or other utility charges and reasonable fees imposed by the municipality. (Me. Rev. Stat. tit. 36 § 943-C (2025).)

A notice of intent to pay excess sale proceeds must be mailed to the former owner at the last known address of the former owner. If the former owner can't be located, the municipality may publish the notice in a local newspaper. If, after providing the notice by publication, a former owner fails to claim the excess sale proceeds within 30 days of the final published notice, the municipality transfers the excess sale proceeds to the state's unclaimed property fund. (Me. Rev. Stat. tit. 36 § 943-C (2025).)

The former owner may request a written accounting of the amount of excess sale proceeds, and an itemization of any deductions. (Me. Rev. Stat. tit. 36 § 943-C (2025).)

What Happens to My Mortgage in a Tax Sale?

Property tax liens have priority. So, a tax sale process can eliminate mortgages (and deeds of trust). If your mortgage loan isn't escrowed and you don't pay the property taxes, the loan servicer will usually pay them to stop a tax sale from happening.

Most mortgages say the lender can add the amount it paid for the taxes to your loan. You'll then have to make repayment arrangements with the servicer or potentially face a foreclosure.

What Options Do I Have If I Can't Afford to Pay My Property Taxes in Maine?

If you're having trouble paying your property taxes, you might be able to reduce your tax bill or get extra time to pay.

For information about property tax relief in Maine, go to the Maine Department of Administrative and Financial Services website. Different types of property and people, such as homestead properties, veterans, and individuals who are paraplegic or blind, as well as some properties owned by schools, are partially or fully exempt from property tax under Maine law.

Getting Help With Property Tax Issues in Maine

Talk to a foreclosure or real estate lawyer if you're facing a tax sale in Maine and have questions about the process or need help redeeming your property.

To learn more about property taxes and other aspects of homeownership, get Nolo's Essential Guide to Buying Your First Home by Ilona Bray, J.D. and Attorney Ann O'Connell.