Maine Tax

Maine State Tax

Maine Income Tax

Maine levies state taxes on individuals and businesses in a variety of categories- including income tax, property tax, sales tax, excise tax, etc.  The State of Maine has one of the highest personal and corporate income tax rates in the US.

Employees who earn wages are taxed based on their income. The Maine state personal income tax bracket ranges from 2 to 8.5 percent of the taxable income. These marginal tax brackets are doubled for couples filing jointly. Maine marginal personal income tax brackets are the 8th highest in the US.

Maine also imposes a four-tiered corporate income tax bracket on companies. The state collects a maximum of 8.930% corporate income tax rate from a company’s gross taxable income- the 9th highest rate in the US.

Employees are required to file their income tax returns to the Maine Revenue Services annually, while self-employed and individuals who earn income on investments must pay taxes quarterly. Taxpayers may file their state tax returns online or through mail. Residents and companies must also file their federal income tax returns to the IRS.

The maximum state sales tax rate in Maine is 5%. The state exempts prescription drugs and basic grocery items such as raw food and water from sales tax. Prepared food such as restaurant meals and pre-made items are subject to special tax known as the General, Service Provider, and Use Tax. This tax levies 7% sales tax on prepared food and 10% on vehicle rentals. Aside from these, there are no special sales tax jurisdictions in Maine, and counties and cities are not allowed to impose local sales tax either.