Maine State Treasurer Joe Perry said Jan. 12 that the interest rate charged on delinquent property taxes will be reduced from 7.5% to 7.0%. For taxable year 2026, the maximum interest rate that a municipality may charge for delinquent property taxes is 7.0%.

Municipalities may vote to determine the rate of interest that shall apply to taxes that become delinquent during a taxable year until those taxes are paid in full.

The maximum rate of interest that can be charged is governed by Title 36 M.R.S. Section 505(4):

“The maximum rate of interest must be established by the Treasurer of State and may not exceed the prime rate as published in the Wall Street Journal on the first business day of the calendar year, rounded up to the next whole percent plus 3 percentage points," according to state statute. "The Treasurer of State shall post that rate of interest on the Treasurer of State's publicly accessible website on or before January 20th of each year. The interest must be added to and become part of the taxes.” 

The State Treasurer provides state agencies with banking and financial services, which include revenue collection, payment issuance, reconciliation, and trust management. The Office also manages state investments and debt payments and issuance that provide funding for capital projects statewide.  Over $390 million in unclaimed funds for Maine residents are managed by the Office of the Treasurer. FMI, www.maine.gov/treasurer