Quick Read Picture Dave collecting $30,000 in Social Security. His benefit remains exempt from Maine income tax. But that same $30,000 reduces the maximum deduction available against his teacher's pension or qualifying IRA withdrawals. Using the $49,824 cap, only $19,824 remains available to shelter that other retirement income. "Maine does not tax Social Security" is technically true. The part left out is that collecting Social Security can expose more of another retirement check to state tax. Dave and Lin ...