Key Takeaways
- Nonresidents face 2.5% withholding. At a price of $100,000 or more, the buyer holds back 2.5% of the full price for Maine Revenue Services.
- It is a prepayment, not the final tax. Form REW-5, filed at least 5 business days before closing, can cut or waive it.
- The transfer tax is split. Maine charges $2.20 per $500 of value, half from each side, with a higher rate above $1,000,000.
- You can close without flying in. Sign before your own notary, use remote online notarization, or sign through a power of attorney.
- An empty house needs a plan. Freezing pipes, insurance vacancy terms, and an 18-month tax lien clock all apply from away.
Selling a house in Maine from out of state is common, and most of the work can be done by mail. Three Maine rules tend to surprise remote sellers. Buyers withhold 2.5% of the price, the seller pays half the transfer tax, and unpaid town taxes can cost you the house without a court case.
This guide covers each rule, plus remote closings and caring for an empty house. Many out-of-state sellers are heirs, so see also our guide to selling an inherited house.
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Let's chatWho Counts as a Nonresident Seller in Maine?
You are a nonresident seller if you are not domiciled in Maine on the day the house transfers. The law defines a resident as one "that has established a domicile in the State as of the date of transfer" (36 M.R.S. §5250-A).
Moving first and selling later can catch sellers off guard. Maine Revenue Services says that if you listed the house as a resident but live elsewhere by the transfer date, withholding applies (Maine Revenue Services, REW FAQ, March 2026). Residents avoid it by signing an affidavit, Form REW-2 or REW-3. Without one, the agency treats the seller as a nonresident.
Heirs, estates, and co-owners
The definition also covers estates and trusts. When a personal representative (the Maine term for an executor) sells for an estate, the estate's residency counts. Heirs who already hold title and sell in their own names are judged by where each one lives.
One nonresident co-owner can pull every seller into withholding. The buyer withholds as if no exception applied, unless all sellers sign a statement at closing that splits the proceeds (§5250-A(6)). With that statement, only the nonresident shares are withheld.
How Does Maine Real Estate Withholding Work for Nonresidents?
The buyer holds back 2.5% of the total price and sends it to Maine Revenue Services as a prepayment of your Maine income tax. The statute says every buyer "must withhold a withholding tax equal to 2 1/2% of the consideration" (§5250-A(2)).
"Consideration" includes any mortgage on the house, so the 2.5% applies to the price, not your profit. On an illustrative $300,000 sale, $7,500 is withheld even if a $250,000 mortgage payoff leaves you $50,000.
The $100,000 threshold and other exceptions
No withholding is required when the price is under $100,000, for sales on or after January 1, 2021 (§5250-A(3)(C)). Other exceptions include a residency affidavit, a certificate from Maine Revenue Services, and some foreclosure sales. A lower price does not make the gain tax-free, though. The agency notes that a federally taxable gain on a Maine sale is still taxable by Maine.
Form REW-1 and the 30-day deadline
The buyer or the "real estate escrow person" files, which in practice usually means the closing attorney or title company. The money and Form REW-1 must reach Maine Revenue Services within 30 days of closing. An escrow person may not charge more than $25 for this step (§5250-A(8)). Keep a copy of your REW-1 for your Maine return.
Asking for less, or none, with Form REW-5
Form REW-5 asks Maine Revenue Services to reduce or waive the withholding. The agency says it "must be submitted at least 5 business days prior to the closing" (Maine Revenue Services, Real Estate Withholding). Once the sale closes, the seller is no longer eligible.
Exemptions are generally granted for a loss, a federal home sale exclusion, a like-kind exchange, or other sales with no Maine tax. A reduction may be allowed when your maximum Maine tax on the gain is below 2.5% of the price. An approved certificate goes to the buyer or closing agent.
A fast closing can leave no room for five business days. If you expect a loss or little gain, file the REW-5 right after the purchase agreement is signed. Otherwise the full 2.5% is withheld until your return is processed.
Maine Income Tax on the Gain
A nonresident settles the real tax on a Maine income tax return for the year of the sale, and the 2.5% withheld is only an estimate. The return decides whether you get a refund or owe more.
Maine has no separate capital gains rate. A gain is taxed at the regular rates of 5.8%, 6.75%, and 7.15% (36 M.R.S. §5111). For a nonresident, Maine figures the tax as if you lived there, then applies the share of your income that comes from Maine (§5111(4)).
You need to file to get back withholding above what you owe, and you attach a copy of Form REW-1. Refund claims generally must be filed within three years (Maine Revenue Services, REW FAQ, March 2026).
The federal exclusion for a former main home
If the Maine house was your main home for at least 2 of the 5 years before the sale, federal law excludes up to $250,000 of gain. Many married couples filing jointly can exclude up to $500,000 (26 U.S.C. §121). Maine Revenue Services lists this exclusion as a common ground for a REW-5 exemption.
Inherited houses and stepped-up basis
Heirs usually take a tax basis equal to the house's value at the date of death (26 U.S.C. §1014). A sale soon after death often shows little gain, which can support a REW-5 request. Our guide to selling an inherited house in Maine covers probate and the personal representative's sale.
The Transfer Tax and a Remote Seller's Checklist
Maine's transfer tax is $2.20 for each $500 of value, and the seller and buyer each pay half (36 M.R.S. §4641-A). Since November 1, 2025, value above $1,000,000 carries an extra $3.80 per $500.
On an illustrative $300,000 sale, the tax is $1,320 and the seller's half is $660. The declaration of value filed with the deed must also show compliance with the withholding law (36 M.R.S. §4641-D). The table uses only figures set by statute or state agencies.
| Task | Who does it | When | What it costs |
|---|---|---|---|
| Form REW-5 request | Seller | At least 5 business days before closing | No fee listed by Maine Revenue Services |
| Deed signed and notarized | Seller, before a notary | Closing day | Set by the notary |
| Transfer tax | Seller and buyer, half each | When the deed is recorded | $2.20 per $500, plus $3.80 per $500 above $1,000,000 |
| 2.5% withholding and Form REW-1 | Buyer or closing agent | Within 30 days of closing | 2.5% of the price, credited to you; escrow fee capped at $25 |
| Overdue town taxes | Closing agent, from the proceeds | At closing | Tax owed plus interest, capped at 7.00% for 2026 |
| Maine income tax return | Seller, often with a CPA | Return for the year of the sale | 5.8% to 7.15%, less the amount withheld |
Can You Close on a Maine House Without Traveling?
Yes, most sellers can close without traveling, through a mail-away signing, remote online notarization, or a power of attorney. No Maine statute requires an attorney or title company to run the closing, but a closing attorney or title company typically handles it.
Mail-away signing
A deed must be acknowledged before a Maine registry of deeds will record it (33 M.R.S. §203). A notary where you live can take that acknowledgment, since Maine gives another state's notarial act "the same effect" as its own (4 M.R.S. §1911). The closing agent couriers the papers, you sign before a local notary, and you ship them back.
Remote online notarization
Maine's Revised Uniform Law on Notarial Acts took effect July 1, 2023 (4 M.R.S. §1933). It lets a notary located in Maine notarize for a person who appears by live audio and video (4 M.R.S. §1915). The notary must verify your identity and keep a recording of the session for at least 10 years. Ask the closing agent whether their notary offers it.
Power of attorney
A power of attorney lets a trusted person sign for you. In Maine it must be acknowledged before a notary to be valid (18-C M.R.S. §5-905). General authority over real estate includes the power to sell (§5-934). One signed in another state is valid in Maine if it met that state's law (§5-906), but send it to the closing agent early for review.
Looking After a Vacant Maine House From Away
An empty Maine house needs protection from freezing, insurance that still applies, and tax bills paid on time.
Heat it or winterize it
A house left without heat in a Maine winter risks burst pipes and water damage. Either keep the heat on with someone checking in, or have a plumber drain the lines and shut off the water. Watch oil or propane deliveries, because a tank that runs dry leaves the house cold.
Read the vacancy terms in your policy
Many homeowners policies limit coverage once a house sits empty for a set period, so call the insurer early. For owner-occupied policies, Maine lets an insurer cancel mid-term only for listed reasons. One is a house left vacant without custodial care (24-A M.R.S. §3049). A caretaker's regular visits, logged by date, can help.
Keep the town's tax bills current
Unpaid town taxes become a lien that can end with the town owning the house. Between 8 months and a year after the tax is committed, the collector can mail a 30-day demand to your "last known address" (36 M.R.S. §942). If the recorded lien goes unpaid for 18 months, it "shall be deemed to have been foreclosed" (36 M.R.S. §943).
No court is involved, so give the town your current mailing address. Late taxes can carry interest of up to 7.00% for 2026 (Maine State Treasurer, 2026). Our guide to the Maine tax lien foreclosure timeline walks through each step.
The homestead exemption ends when you move
Maine's homestead exemption takes $25,000 off the value of a permanent resident's primary house (36 M.R.S. §683). Once you move away, the house no longer qualifies, and the owner must "notify the assessor promptly" (36 M.R.S. §684). Expect a higher bill.
Pricing a Maine House You Cannot See
Price a Maine house from away by checking recent sales in its county and getting a local read on its condition. The market has more listings than a year ago, so condition matters.
The Maine Association of Realtors reported a statewide median sale price of $424,550 for existing single-family houses in August 2026, up 4.31% year over year (Maine Association of Realtors, September 2026). The same report shows a June to August median of $621,500 in Cumberland County and $175,000 in Aroostook County.
The Zillow Home Value Index for Maine was $415,552 in August 2026, up 1.6% over the year (Zillow ZHVI, August 2026).
Realtor.com counted 6,258 active Maine listings in August 2026, the most since December 2019, and 2,332 had a price cut (Realtor.com via FRED, August 2026).
Photos and video from a caretaker miss smells, soft floors, and wet basements. A local agent's opinion, an inspection, or a buyer's own visit fills that gap.
Selling a House in Maine From Out of State for Cash
A cash offer can suit a remote seller because it often means one visit or none, a closing by mail, and no cleanout.
Propcash is a direct cash homebuyer that buys houses as a principal, so you deal with the decision-maker from first call to closing. We make one transparent, data-backed cash offer and show how we got to our number. You sell as-is: no repairs, no showings, and you can take what you want and leave the rest.
Sellers pay no fees or commissions to Propcash, and you pick the closing date. Once title is clear, a cash sale can close in as few as 7 days. The 2.5% withholding still applies to any buyer, so file the REW-5 early.
If the house shows well and you can manage showings from away, listing with a local agent may net you more. If a cash sale isn't your best move, Propcash will say so and point you to a local agent who fits. We may receive compensation from agents we refer.
When you are ready, you can get a cash offer to compare with your other options. Our Maine cash offer page explains the process, and seasonal owners can read about selling a Maine camp or lakefront cottage.
Why wait? Sell your house “as is” for cash today
Tell us about your house. We'll make you a cash offer based on local market data.
Let's chatFrequently Asked Questions
What is Maine real estate withholding for nonresident sellers?
It is a 2.5% prepayment of Maine income tax, taken from the total price when a nonresident sells a Maine house for $100,000 or more (36 M.R.S. §5250-A). The buyer or closing agent sends it to Maine Revenue Services with Form REW-1 within 30 days of closing. It is credited against the tax on the seller's Maine return.
How can a seller reduce or waive the 2.5% Maine withholding?
File Form REW-5 with Maine Revenue Services at least 5 business days before closing. Exemptions are generally granted for a loss, a federal home sale exclusion, a like-kind exchange, or a sale with no Maine tax due. After closing, the seller can only recover an overpayment through a refund on the Maine return.
Can you sell a Maine house without traveling to Maine?
Yes. You can sign the deed before a notary in your own state and mail it back, because Maine honors other states' notarial acts (4 M.R.S. §1911). Maine also allows remote online notarization by a notary located in Maine (4 M.R.S. §1915). A power of attorney is a third option.
Who pays the transfer tax when a Maine house is sold?
The seller and the buyer each pay half (36 M.R.S. §4641-A). The rate is $2.20 for each $500 of value, plus $3.80 for each $500 above $1,000,000 since November 1, 2025. On an illustrative $300,000 sale, the seller's half is $660.
What happens if the taxes go unpaid on an empty Maine house?
The town can record a tax lien against the house. If the lien is not paid within 18 months of recording, it is deemed foreclosed with no court case (36 M.R.S. §943). Keeping your mailing address current with the town helps the warning notices reach you.
Does an out-of-state heir have to pay the 2.5% withholding?
Heirs who hold title and live outside Maine are nonresident sellers, so withholding applies at a price of $100,000 or more. An heir's basis is usually the value at the date of death (26 U.S.C. §1014), so a quick sale often shows little gain. That can support a REW-5 request or a refund on the Maine return.
Maine Revised Statutes (legislature.maine.gov, read September 2026), Maine Revenue Services withholding pages, the Maine State Treasurer, the U.S. Code, and the market sources dated above. Examples are illustrative. This is general information, not legal or tax advice.