Maine Real Estate Transfer Tax: How the Buyer-Seller Split Works
Maine Real Estate Transfer Tax: How the Buyer-Seller Split Works
Most states let buyers ignore the transfer tax — it is the seller's problem. Maine does not work that way. Under Maine law, the Real Estate Transfer Tax (RETT) is split equally between the buyer and the seller, which means a chunk of cash-at-closing that many first-time buyers simply do not see coming until they review the closing disclosure.
This is not a small amount on a typical transaction, and for buyers stretching their down payment and cash reserves to make the deal work, an unexpected $770 cash obligation on a $350,000 purchase can create real problems. Here is how to calculate your share in advance and what changed on November 1, 2025.
The Basic Rate
Maine's RETT is charged at $2.20 per $500 of the property's value (or fractional part thereof), split equally between buyer and seller. Each party pays $1.10 per $500, or an effective rate of 0.22% of the purchase price.
On a median-priced Maine home of roughly $350,000, the numbers look like this:
- Total transfer tax: $350,000 ÷ 500 × $2.20 = $1,540
- Buyer's share: $770
- Seller's share: $770
That buyer share is non-financeable — it must come out of your cash reserves at closing alongside your down payment and other closing costs.
To calculate your share for any transaction:
Buyer's RETT = (Purchase Price ÷ 500) × $1.10
Round up any fractional $500 increment. On a $301,000 purchase, you use 603 (not 602) in the calculation.
Quick Reference Table
| Purchase Price | Total RETT | Buyer's Share |
|---|---|---|
| $200,000 | $880 | $440 |
| $300,000 | $1,320 | $660 |
| $350,000 | $1,540 | $770 |
| $400,000 | $1,760 | $880 |
| $500,000 | $2,200 | $1,100 |
What Changed November 1, 2025
Maine introduced a progressive surcharge on high-value transactions effective November 1, 2025. For any portion of the sale price above $1,000,000, an additional tax of $3.80 per $500 is imposed, bringing the effective rate on that excess portion to $6.00 per $500 total — still split equally between buyer and seller.
In practical terms:
- First $1,000,000 of value: $1.10 per $500 (buyer's share)
- Value above $1,000,000: $3.00 per $500 (buyer's share)
This primarily affects high-end coastal properties in Cumberland County, York County, and waterfront markets. If you are purchasing at or above the $1 million threshold, your attorney will walk through the precise calculation on the closing disclosure.
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Where the Transfer Tax Is Documented
During closing, the parties must complete a Real Estate Transfer Tax Declaration (RETTD) form, which documents the adjusted assessed value and transaction price. Your closing attorney files this with the Registry of Deeds at recording. The tax is paid at closing from the funds your attorney disburses.
One detail that surprises buyers: Maine uses the property's "adjusted assessed value" — not just the raw purchase price — in certain calculation scenarios. In most standard residential transactions, the purchase price and assessed value align for RETT purposes, but your attorney will flag it if a discrepancy exists.
Is the Split Negotiable?
In theory, yes. The statutory default is a 50/50 split, but the Purchase and Sale Agreement can contractually reallocate who pays what. In a buyer's market or as part of a broader concession negotiation, you could ask the seller to cover your share of the RETT. In practice, in competitive southern Maine markets where sellers routinely receive multiple offers, asking for transfer tax coverage is uncommon and may weaken an offer. In softer markets — inland rural properties, higher-days-on-market listings — it is a reasonable ask.
How It Fits into Total Closing Costs
The transfer tax is one line on your closing disclosure, but it adds up quickly alongside the other Maine-specific closing costs. On a $350,000 purchase, buyers typically face:
- Closing attorney fees: $500–$1,500
- Title search: $150–$500
- Lender's title insurance: $400–$800
- Owner's title insurance: $600–$1,200
- Appraisal: $400–$700
- Recording fees: $40 per document (flat fee since January 2026)
- Transfer tax (buyer's share): approximately $770
- Lender origination: 0.5%–1.0% of loan amount
- Prepaid insurance and escrows: $2,500–$3,500
Total closing costs typically land between 2% and 5% of the purchase price in Maine. On a $350,000 home, that is $7,000 to $17,500 in cash on top of your down payment. Understanding every line — including the transfer tax — before your closing day is how you avoid being surprised at the table.
The Common Misconception
The most frequent misunderstanding among out-of-state buyers is the assumption that Maine follows the same convention as their home state, where the seller covers the transfer tax. Massachusetts buyers moving north are particularly prone to this — Massachusetts historically absorbs transfer taxes into the seller's net. Maine's split structure is codified in statute, not just custom, which means it applies regardless of what a buyer assumes.
Your closing attorney will confirm the exact amount on the closing disclosure several days before closing. Read that document carefully when it arrives.
The RETTD and the Controlling Interest Transfer Tax
Two related provisions are worth understanding if your transaction is anything other than a straightforward individual purchase.
The Real Estate Transfer Tax Declaration (RETTD) is filed for every transaction. It documents the property's adjusted assessed value alongside the purchase price, allowing Maine Revenue Services to verify the tax calculation. If the sale price is below assessed value — as sometimes happens in distressed sales or family transfers — the tax may be based on assessed value rather than the nominal sale price.
The Controlling Interest Transfer Tax (CITT) is a related provision that applies when ownership of an entity that holds Maine real property changes hands. If a buyer or seller structures a transaction as the sale of an LLC or corporation rather than a direct real estate transfer, the CITT still applies to the underlying property value. This matters for buyers purchasing property through entities: the tax does not disappear because the transfer is structured as a membership interest sale.
What Buyers from Other States Should Know
Maine's RETT places the state in a minority. Most states that impose real estate transfer taxes — including Connecticut, New York, and Washington — either assign the tax entirely to the seller or use a smaller buyer-only charge. Maine's equal split is unusual enough that it genuinely surprises a meaningful share of buyers who have done transactions elsewhere.
The practical implication: when you model your cash-to-close before making an offer, add 0.22% of the purchase price to your line items for buyer-owed transfer tax. On a $400,000 purchase, that is $880. Not catastrophic, but real — and it compounds on top of the down payment, lender fees, title insurance, attorney fees, and prepaid escrows that already total $10,000 to $17,000 on a typical Maine transaction.
Building a complete cash-to-close estimate before you go under contract — not after — is the way to avoid a scramble at closing.
The Maine First-Time Home Buyer Guide includes a complete closing cost worksheet with the transfer tax calculation, lender fees, and all the other Maine-specific costs you need to plan for before you make an offer.
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