Maximum Interest Rate Set For 2025 Delinquent Property Taxes

Date Posted: Monday, January 13, 2025
Posted In: Legal Services

The State Treasurer has established 7.5% as the maximum interest rate that municipalities may charge for delinquent property taxes committed during calendar year 2025.

Note that interest does not actually accrue on unpaid taxes unless a municipality’s legislative body (town meeting or town/city council) establishes the rate of interest and the date or dates after which interest will accrue. This must be done annually at a meeting at which the municipal legislative body votes to raise a tax or at any subsequent meeting prior to commitment of taxes. Neither the interest rate nor tax due dates can be altered after taxes have been committed for the year. See 36 M.R.S. § 505.

Also, neither the law nor the State Treasurer establishes a minimum interest rate for delinquent property taxes. Municipalities may set a lower rate than the maximum if they wish (including a rate of 0%), though most municipalities adopt the maximum allowed by law. If a municipality fails to set any interest rate for delinquent taxes, no interest will accrue on late payments.

Members needing more information or with questions concerning property taxes, please contact MMA Legal Services at 800-452-8786 or [email protected]