Form REW-1-1040 - Maine-2026

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  1. Click ‘Get Form’ to open it in the editor.
  2. Begin by entering the seller's name and Social Security Number in the designated fields. If applicable, include the spouse's information if filing jointly.
  3. Provide the current mailing address of the seller, ensuring accuracy for future correspondence.
  4. Fill in the physical location of the property, including street address and municipality. If no street address exists, provide map, block, and lot numbers.
  5. Indicate the date the property was acquired and the date of transfer. This is crucial for tax purposes.
  6. Calculate and enter the total consideration (sales price) of the property. Ensure this reflects all financial aspects involved in the transaction.
  7. Specify the rate of withholding and attach any necessary certificates if applicable. Enter amounts withheld based on your calculations.
  8. Complete buyer information including name, address, and Social Security number or federal ID number.
  9. Review all entries for accuracy before saving your completed form within our platform.

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The buyer of the property will withhold and remit the Real Estate Withholding money to Maine Revenue Services using form REW-1. The amount to be withheld is equal to 2.5% of the sale price.
Current law allows for a sizable exclusion from the capital gains tax on profits from the sale of your primary residence. For single filers, the first $250,000 of profit is exempt from the tax, while married couples filing jointly wont have to pay any capital gains on up to $500,000 in profits from a home sale.
To qualify, you must be a permanent resident of Maine, the home must be your permanent residence, you must have owned a home in Maine for the twelve months prior to applying and an application must be filed on or before April 1 with the municipality where the property is located.
To be eligible for the program, you must be at least 65 years old or unable to work due to a disability. In addition, all owners must have combined liquid assets of less than $150,000 ($100,000 if a single owner) and combined income of less than $80,000.
The State Property Tax Deferral Program is a lifeline loan program that can cover the annual property tax bills of Maine people who are ages 65 and older or are permanently disabled and who cannot afford to pay them on their own.

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Maine state tax forms and instruction booklets can be requested at 207-624-7894. Additional forms can be printed at .

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