Cost of Living & Housing in Southwest Harbor

Southwest Harbor's cost of living centers on genuinely expensive Mount Desert Island coastal housing, offset by a comparatively low local property tax rate and Maine's own statewide tax profile.

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Genuinely expensive coastal housing

Southwest Harbor's median sale price ran approximately $369,000 (Redfin, most recent month), with separate home-value estimates running as high as approximately $493,000 -- both well above the roughly $355,000-$375,000 range commonly cited nationally in 2026 (base record).

A low 0.90% effective property tax rate, but a high dollar bill

Southwest Harbor's own 0.90% effective property tax rate runs below both the national and Maine statewide medians, but its high home values still push the average annual tax bill to approximately $3,750 -- above the national median dollar bill of $2,400 (base record).

Maine's 7.15% top income tax rate and 5.5% sales tax

Maine's real, current 2026 individual income tax tops out at 7.15% for the overwhelming majority of taxpayers (with a new 2% millionaire's-tax surcharge above $1M/$1.5M income), alongside a 5.5% general sales tax with no local-option layer (base record; see maine.js).

A genuinely wide spread in local income data

This pass's research found Southwest Harbor-specific median household income figures ranging from $31,518 to $75,953 across sources -- a spread this record attributes to the town's very small population and a correspondingly wide Census margin of error (base record).

Key takeaways

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Last reviewed: 2026-08-28. Independent research; not financial, tax, or legal advice -- confirm current figures with a local professional before making a decision.