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Maine · 36 M.R.S. §5250-AMaine real estate withholding: 2.5% unless the seller is a Maine resident

Every buyer of Maine real property must withhold 2.5% of the consideration and send it to the State Tax Assessor within 30 days of the transfer, unless an exception applies (36 M.R.S. §5250-A). A buyer who fails to withhold is personally liable. The buyer does not withhold when the seller certifies under penalty of perjury that it is a Maine resident, when the consideration is under $100,000, when the assessor has certified no tax is due, or when the buyer was not given written notice of the requirement. The closing attorney, title or escrow company – the real estate escrow person – handles it. On a $500,000 sale from a nonresident: $12,500.

Who withholds, how much and an example

  1. Who withholds

    The buyer; the real estate escrow person – the closing attorney, title or escrow company first – handles it (§5250-A(1)(B), (2)).

  2. Amount

    2.5% of the consideration, mortgages and liens included (§5250-A(1)(A), (2)).

  3. Deadline

    Sent to the State Tax Assessor within 30 days of the transfer (§5250-A(2)).

  4. Liability

    A buyer who fails to withhold is personally liable for the tax (§5250-A(2)).

  5. Example

    $500,000 sale from a nonresident → $12,500.

No withholding when

  • The seller certifies under penalty of perjury that it is a Maine resident on the transfer date.
  • Consideration under $100,000 (sales on or after January 1, 2021).
  • A State Tax Assessor certificate that no tax is due or adequate security was given.
  • The buyer was not given written notice of the withholding requirement.
  • Government, §501(a) exempt or certain insurance sellers; foreclosure when the price does not exceed the secured debt.

What the TC checks before closing

  • Seller's residency and entity type – asked early, not at the closing table.
  • The signed exemption certificate or affidavit, in the file before funds are disbursed.
  • The withholding line on the seller's settlement statement and who remits it, and by when.

Questions about this withholding

How much is Maine real estate withholding?

2.5% of the consideration from nonresident sellers – $12,500 on $500,000.

How does a Maine resident avoid withholding?

By signing a certificate under penalty of perjury that the seller is a Maine resident on the transfer date.

Is there a minimum price for Maine withholding?

Yes. No withholding when the consideration is under $100,000.

Related guides

Put the residency question and the exemption certificate on the checklist as tasks with an owner and due date in ClosingCode, with the documents attached to the deal.

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Source: 36 M.R.S. §5250-A (legislature.maine.gov, read October 25, 2026).

General information, not legal or tax advice. ClosingCode is software; it is not a law firm or brokerage.