Costs of Selling Land in Maine

Selling Costs in Maine: What to Know

Maine charges a real estate transfer tax on every deed, and the law splits it evenly between seller and buyer. Out-of-state sellers may also face income tax withholding at closing on larger sales.

This page lists the costs of selling land in Maine, who usually pays each one, how capital gains tax works on land, and how the numbers change when you sell to a cash buyer who pays closing costs. This page is general information, not legal or tax advice.

Maine real estate transfer tax

Under 36 M.R.S. section 4641-A, the tax is $2.20 for each $500 of value, or part of $500. Half is imposed on the grantor (seller) and half on the grantee (buyer). For transfers after November 1, 2025, value above $1,000,000 carries an added $3.80 per $500.

Both sides sign a transfer tax declaration (Form RETTD) that is filed with the deed at the registry. Maine does not add a county or town transfer tax on top.

Who pays what by custom

The transfer tax split is set by law. Most other costs are set in the purchase agreement. Sellers often pay to clear title (mortgage or lien releases) and their share of property taxes. Buyers often pay to record the deed and for title insurance.

• Seller: half the transfer tax, lien releases, prorated property taxes
• Buyer: half the transfer tax, often recording and title insurance
• Each side: its own attorney if it hires one

Recording fees at the registry of deeds

County registries charge fees set in 33 M.R.S. section 751. Since January 1, 2026, most instruments, including deeds, cost a flat $35 to record. Before 2026 the fee was $19 for the first page plus $2 per extra page.

Nonresident seller withholding

If you do not live in Maine and the price is $100,000 or more, the buyer must withhold 2.5% of the price and send it to Maine Revenue Services. It counts toward your Maine income tax, and you can claim any excess back on your return.

You can ask for an exemption or a smaller amount before closing, for example when you will have a loss. Maine Revenue Services asks for at least 5 business days to respond.

Attorney or title company closing

Attorneys handle many Maine closings, and title companies also run them. Either way, someone must prepare the deed and transfer tax declaration and record them at the county registry.

Ask the closing office up front what it charges the seller.

Capital gains tax when you sell Maine land

Federal tax applies to the gain, not the full price. Gain is the sale price minus your basis (what you paid plus improvements and costs of buying and selling). If you held the land more than one year, the gain is long-term and the federal rate is 0%, 15% or 20% depending on your taxable income; land held one year or less is taxed at ordinary rates. See IRS Topic 409. Higher earners may also owe the 3.8% net investment income tax (IRS Topic 559).

Maine taxes the gain as ordinary income. For 2026, Maine Revenue Services lists rates of 5.8%, 6.75% and 7.15%, plus a 2% surcharge on Maine taxable income above $1,000,000 for single filers ($1,500,000 for joint filers).

The closing agent usually reports the sale to the IRS on Form 1099-S. If you inherited the land, your basis is generally the value on the date of death, which often shrinks the gain. This page is general information, not legal or tax advice.

How selling to a cash buyer changes your Maine costs

In a listed sale you pay an agent commission and your share of closing costs out of the price. When you sell to EasyLotBuyer, there are no fees or commissions and we pay the closing costs. You get a cash offer within 24 hours and can close in as few as 7 days.

We also buy land with back taxes, liens, title issues or no road access, and land held by heirs or an estate. Back taxes are paid at closing from the sale, so you do not need cash up front. Maine law still splits the transfer tax, but we cover the closing costs in our offer. Start with the Maine land page or check a rough number with the offer calculator.