Maine is a great place to settle down with its beautiful ocean views, delicious lobster, and gorgeous fall foliage. You’ll love exploring the adorable antique shops, which are regarded as some of the best in the nation. Maine also has the lowest crime rate of any state, so you’ll feel safe living there. The only real downside of the Pine Tree State is that it’s the sixth most expensive place to live in the country.
Although the cost of living in Maine is higher than the national average, it’s still one of the cheapest states in New England. So if you love quaint coastal towns but can’t afford Massachusetts or Connecticut, Maine may be an excellent choice for you.
To help you decide if moving to Maine is the right financial decision, here’s an overview of the cost of living.
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Housing
Although the overall cost of living in Maine is on the high side, housing is pretty affordable. Homes sell for around $236,000 on average, which is nearly $35,000 less than the US median.
However, housing prices can vary widely depending on which part of Maine you decide to settle down in. Housing in Portland costs almost double the national average with a modest home costing $475,000. Falmouth, which is just north of Portland, is even more expensive. Homes cost $675,000 on average.
If you’re willing to live outside of the city, your housing costs will drop substantially. Bath is about 35 minutes away from Portland and has homes available for $250,000. Homes in Sanford are also affordable and cost slightly less than the national average at $260,000.
Utilities
Because of the long, cold winters, Maine has the tenth highest utility costs in the nation. You can expect to pay around $464.45 per month for gas, water, electricity, internet, and cable, which is nearly $42.37 more than the US median.
Food
Maine residents have the third highest grocery bills in the country. The average single person spends $4,115 on groceries annually, which is nearly $1,500 more than the US median.
If you want to try Maine’s famous lobster rolls, you’ll also have to budget some money for eating out. The average meal at a fast casual restaurant costs $15, while a meal for two at a mid-range eatery costs $60. Mainers spend $2,932 annually on eating out, bringing their total yearly food costs to $7,047.
Healthcare
Mainers spent $5,860 per person on healthcare in 2018. That’s nearly $1,000 more than the national average. Here’s a full breakdown of where that money went:
- $1,156 on inpatient services
- $2,070 on outpatient services
- $1,017 on prescription drugs
- $1,617 on procedures
However, your total medical costs may vary depending on where you live. For example, the average cost of a gallbladder removal surgery in Rockport, Maine is $10,257. In Presque Isle, which is just under four hours away, the procedure costs nearly double. That’s why it’s important to ask about the cost of inpatient services ahead of time and shop around for non-urgent medical procedures to find the best price.
Transportation
Overall, Maine is an affordable place to own a vehicle. It’s the cheapest state for car insurance, which costs just $862 annually. Maine also has a below-average vehicle sales tax of $2,104.
However, you’ll pay slightly more than the national average for gas and vehicle property tax, which cost $1,234 and $918 per year, respectively. You’ll also have to factor in maintenance and repair fees, which cost an average of $354 per year, plus title and registration costs, which are $35 each.
All in all, you can expect to spend around $13,192 on your car in the first year of ownership after accounting for depreciation.
Taxes
Maine is also on the more expensive side with taxes. The effective state and local tax rate is 11.81%, which is 9.33% higher than the national average. Mainers spend a total of $6,792 per year on taxes, with $2,585 going to property taxes.
Residents also pay income taxes at a rate of 6.5% on income between $5,200 and $20,899 and 7.95% on income of $20,900 or more.
Additionally, Maine charges a general sales tax of 5.5%. But keep in mind that you’ll pay a higher tax rate of 8% on prepared foods and 10% on short-term auto rentals.
Miscellaneous
Miscellaneous expenses include things like cleaning supplies, personal care products, and clothing. According to MIT, you’ll need to budget at least $3,078 per year for miscellaneous costs if you’re a single person. The average family of four spends significantly more—about $6,665 annually.
If you have a four-legged member of the family, you’ll also have to factor in vet and dog food costs into your budget. Mainers only spend around $90 per month on their pets every month, which is nearly $40 less than the national average.
A vet visit only costs $55 even in Portland, one of the more expensive cities. You won’t have to spend much on toys to entertain your pup either because there are so many beautiful hiking trails you can explore together in the Pine Tree State.
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Is it expensive to live in Maine?
A recent study showed that the cost of living in Maine is the sixth highest in the country. Maine residents spend 91.3% of their income on expenses, which is about 10% more than the national average. Although homes and cars are pretty affordable, high food, healthcare, and tax costs can make it harder to get by in Maine.
How much money do you need to live comfortably in Maine?
A single person in Maine needs a salary of at least $31,043 to afford basic necessities, while a family of four needs a household income of $67,416. However, these figures won’t give you much money left over at the end of the month for savings and entertainment. It’s estimated that a salary of $80,336 will allow you to live more comfortably.
What is the average rent in Maine?
The median rent in Maine is $853 per month, which is about $200 less than the national average. However, housing costs may vary depending on what part of the state you live in. Housing costs have also increased rapidly in 2021, so the numbers may be higher than the Census figures. Apartments in bigger cities like Portland and Westbrook cost over $1,000 per month. But if you’re willing to live in a smaller town like Rumford, your monthly rent payment could be as low as $600.
