Maine tax guide
Maine’s tax system is characterized by a three-tiered progressive income tax structure designed to distribute the tax burden based on income level. With a top rate of 7.15%, the state maintains a higher tax profile compared to the national average. Because there are no local income taxes, residents only need to focus on state and federal compliance.
Key tax highlights
Payroll
- Maine tax brackets are adjusted annually for inflation to prevent bracket creep.
- The state uses a progressive structure where tax rates increase as your taxable income moves into higher brackets.
- Employers must withhold Maine state income tax based on the specific graduated withholding tables provided by Maine Revenue Services.
Local taxes
- Unlike many other states, Maine does not impose a separate local or municipal income tax on top of state and federal levies.
Deductions
- Maine allows a personal exemption amount for taxpayers, which is subject to phase-out based on federal adjusted gross income levels.
- Residents can claim a standard deduction that mirrors the federal standard deduction amount for the corresponding tax year.
Salary examples
Pre-computed take-home estimates at common salary levels. For example, a $75,000 salary in Maine yields about $56,750 after all deductions (75.7% take-home rate). Use the calculator above with your actual salary to see your specific estimate.
| Salary | Federal | State | FICA | Take-Home | Rate |
|---|---|---|---|---|---|
| $50,000 | $3,820 | $3,115 | $3,825 | $39,240 | 78.5% |
| $75,000 | $7,670 | $4,843 | $5,738 | $56,750 | 75.7% |
| $100,000 | $13,170 | $6,630 | $7,650 | $72,550 | 72.5% |
| $150,000 | $24,734 | $10,205 | $11,475 | $103,586 | 69.1% |
Neighboring states
How Maine compares with border states on income tax. At a $75,000 salary, a Maine worker pays $4,843 in state tax annually.
| State | Tax type | Top rate |
|---|---|---|
| New Hampshire | no tax | No state income tax |
Tax tips for Maine
- Check your pay stub periodically to ensure your employer is using the current Maine withholding tables to avoid unexpected tax bills.
- Review potential Maine-specific credits, such as the Property Tax Fairness Credit, which can help offset income tax liability.
- Keep documentation for Maine-specific deductions that may deviate from federal rules when filing your annual return.
Did you know?
- •Maine is one of the few states that consistently adjusts all of its income tax brackets for inflation to mitigate the effects of bracket creep.
- •Despite the high state income tax, Maine does not impose a general local income tax, keeping tax administration strictly at the state level.
Filing guidance
Maine residents must file Form 1040ME to report their annual income. Since Maine’s tax system is linked to federal AGI, ensure your federal return is completed accurately before starting your state filing, as federal figures serve as the starting point for Maine income calculations. Use the Maine Revenue Services online portal for the most efficient processing of your state tax refund.
Relocation context
Comparing Maine with nearby states can reveal whether paycheck differences are driven by state tax, local tax, or payroll deductions.