Augusta, the capital of Maine, has relatively low home prices compared to other cities in New England, but when it comes to property tax rates, it ranks among the highest in the state. Many people are surprised by the tax rate after only considering the low purchase prices.

For the fiscal year from July 2024 to June 2025, Augusta's mill rate is $23.80 per $1,000 of assessed value, which translates to an effective tax rate of about 2.3% to 2.4%. This is more than double the overall median effective tax rate of 1.00% for Kennebec County and the state average.

Augusta is currently undergoing a reassessment for the first time in 20 years, and it is expected that the mill rate will drop to around $17 once this process is completed. However, since the assessed values will likely be adjusted upward due to the reassessment, the actual tax bills may not decrease significantly, and we will need to wait for the city's announcement on this matter.

The median home price in Augusta varies depending on the source, but reflecting recent market trends, it is realistically estimated to be between $190,000 and $210,000. Applying the effective tax rate of 2.3% to this estimate results in an annual property tax of approximately $4,400 to $4,800.

Maine's winter snowstorms and freezing, along with spring thaw pipe bursts, are the main causes of insurance claims, while the risks of hurricanes or earthquakes are relatively low. For this reason, homeowners insurance premiums are often lower than in other parts of New England, typically ranging from $1,000 to $1,400 per year.

Considering that many homes in Augusta are wooden structures that are several decades old, it is safe to estimate maintenance costs at around 1.5% to 2% of the home price, or about $2,900 to $4,200 per year. Most single-family home areas do not have HOA fees.

When combining property taxes, insurance premiums, and maintenance costs, the total annual cost of homeownership is estimated to be around $8,500 to $10,000. While the purchase prices are low, it is important to remember that the tax burden relative to home prices is quite high compared to areas near Washington, DC.

• Annual property tax: approximately $4,400 to $4,800
• Homeowners insurance: approximately $1,000 to $1,400
• Maintenance costs: approximately $2,900 to $4,200

Maine has a Homestead Exemption program that allows a $25,000 deduction from the assessed value for owner-occupied homes, and Augusta residents can apply to reduce their tax burden each year. If you are considering moving to Augusta, it is advisable to obtain an estimate of property taxes based on the actual mill rate before closing, rather than just feeling reassured by the low purchase prices.