Property Tax Relief

IMPORTANT: As a result of recent changes in the law, the Property Tax Stabilization Program was repealed and will only apply to the property tax year beginning April 1, 2023. However, this same legislation has expanded the eligibility thresholds for participation in the Property Tax Deferral Program and increased the maximum benefit available under the Property Tax Fairness Credit for those age 65 and older.

The State Property Tax Deferral Program is a program that allows certain individuals to defer (postpone) payment of the property taxes on their homesteads until they pass away, move, or sell their property. During the period when the taxes are being deferred, the State reimburses the municipality for the deferred taxes.  The deferred tax, plus interest, is then required to be repaid to the State by the individual or their estate when they pass away, move, sell the property, or move the property (if mobile or floating home) out of Maine.

Property Tax Fairness Credit

Eligible Maine taxpayers may receive a portion of the property tax or rent paid during the tax year on the Maine individual income tax return whether they owe Maine income tax or not. If the credit exceeds the amount of your individual income tax due for the tax year, the excess amount of credit will be refunded to you.

The Town Council adopted a new town ordinance, Chapter 162, Senior Taxpayer Assistance Program, that took effect September 15, 2022. The Town Council then adopted an amendment to the ordinance, effective September 14, 2023. To qualify, applicants must be 65 years of age or older and have lived in Bar Harbor for five consecutive years. Applicants must also have been approved to receive a Maine Property Tax Fairness Credit for the current tax year. Click here for the application form. 

 For more information about setting up a Tax Payment plan, click here.