Homeowners in Maine Just Got a Slight Property Tax Interest Cut—Will It Provide Real Relief?

Property taxes are on the rise, and with them is also the number of homeowners who are falling behind on payments.

Property taxes have risen 27% from 2019 to 2025 and in August 2025, Cotality released their latest Property Tax Delinquency Report. They found that delinquencies ticked up to 5.1% in 2025, after hitting 4.5% in 2024—slightly above the all-time low of 4.3% reported in 2019. 

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

Just like with mortgage interest, while this fractional percentage may seem small, it can have critical benefits to a homeowner who is attempting to keep their home from foreclosure. 

What delinquent property tax interest is

When a homeowner fails to pay their property taxes, most local governments charge interest on the unpaid amount. 

Though separate from initial penalties and fees associated with missing payments, the end goal is the same: encouraging timely payments.

Typically, interest will start accruing immediately after the tax due date, though some states allow for a short grace period.

Rates can be fixed or variable, and every state has a different interest rate. While Maine is now at 7.0%, that’s well above the national average of 5.1%, according to Cotality. 

By comparison, in New Jersey, the interest rate is 10% in 2026, down from 10.75% the year before. 

Consider the math

As property taxes continue to rise, along with other costs of homeownership like insurance and repairs, delinquencies could also keep rising, threatening long-term homeownership.  

With that said, if interest rates on delinquent property taxes continue to fall, there’s an increased chance that homeowners will find a way to pay back what they owe. Again, even small decreases can have huge impacts. 

Let’s say you own a home in Portland, ME, in Cumberland County. The median property taxes there were the highest in the state in 2023, at $4,577, or about 1.11% of a home’s value. 

If you had missed paying your 2024 property taxes, the 7.5% interest rate in 2025 would have added roughly $343, bringing your total bill to about $4,920. 

Now, let’s fast forward a year: if you missed your 2025 taxes, the new 7% rate in 2026 would tack on about $320, for a total of roughly $4,897. That small drop in the rate saves homeowners around $23 in interest—but that’s just one year. For those who let taxes go unpaid for multiple years, every percentage point really adds up.

Where are the highest delinquency states

In 2024, Maine cracked the top ten states with the highest property tax delinquency rates. At a rate of 8.3%, it rivaled other New England locals like Massachusetts (8.3%) and Connecticut (7.6%) but was spared a top five spot as states with higher unemployment rates are seeing a significant increase in property tax delinquencies from the national average. 

Mississippi (13.8%), New Jersey (9.9%), West Virginia (9.9%), Washington, DC (9.5%), New Mexico (9.4%), and Delaware (9.3%) topped the list. Of the six states that topped the tax delinquency in 2024, three of these states have higher unemployment than the U.S. average. Two of the states that have lower unemployment than the U.S. average, Mississippi and West Virginia, are states with a low median household income

“Many homebuyers assume that securing a mortgage means locking in stable monthly payments for the long term,” said Molly Boesel, senior principal economist at Cotality said in the press release.  

“However, rising home values often lead to higher property taxes, and over the past six years, this has become a reality for many homeowners. Whether they’re paying off a mortgage or own their home outright, rising monthly costs can put pressure on household budgets. Those without sufficient financial buffers, such as steady income or savings, may find themselves struggling to keep up with growing tax bills.”