The New York financial technology company SmartAsset has reviewed tax data from around the country to develop state-by-state rankings of what it considers the most tax-friendly places for retirees.
The top-ranking places in Maine were, in order, Skowhegan, Caribou, Waterville, Presque Isle and Augusta.
Old Town ranked No. 6, followed by Ellsworth and Gardiner. Belfast and Bangor rounded out the top 10.
To run its calculations, SmartAsset created hypothetical income tax bills for a retiree making $15,000 from Social Security benefits, $10,000 from a private pension, $15,000 from retirement savings like a 401(k) or IRA, and $10,000 in wages.
The company then considered whether Social Security is taxed in each place, and finally reviewed median property tax levels.
As Maine’s income tax is the same statewide and there’s no tax on Social Security income here, the ranking basically boiled down to property taxes. And the map focused exclusively on taxes, so the availability of programs and services for retirees didn’t come up.
That said, the ranking may nonetheless be a helpful selling point for communities seeking to attract retirees. See the SmartAsset grid below: