Find Legal Topics > Tax Laws > Maine State Tax

Maine State Tax

Maine State Tax There are a number of taxes applicable to the state of Maine, which includes sales tax and four income brackets for personal income taxation.  Tax returns are due on April 15.

Maine state sales tax – 5% (food and drugs exempt), $1.50 per 100 pounds of blueberries

There are addition sales taxes of 7% of lodging and 10% on car rentals, exemptions available for schools, charities, hospitals and related organizations.

Maine state personal income tax 

Four income brackets for single filings

2% - first 4,950 of taxable income

4.5% - $4,951 - $9,850

7% - $9,851 and $19,750

8.5% - $19,751+

For married couples

2% - first 9,950 of taxable income

4.5% - $9,951 - $19,750

7% - $19,751 and $39,550

8.5% - $39,551+

Maine state excise taxes

Taxes are assessed on vehicles, alcohol, tobacco, gasoline, forested property and are in addition to federal excise taxes. 

$2.00/package of 20 cigarettes

$4.56 tax per gallon of liquor

$.35 per gallon of beer

$.60 per liter of wine 

Vehicles – MSRP multiplied by the “millage rate.”  The age of the car determines the “mil rate”

Gasoline – 31 cents/gallon

Diesel – 32.2 cents/gallon

Taxation on landowners of 500 acres of commercial forest land for forest fire prevention expenditures, which is generally 35 to 45 cents per acre.

Maine estate tax 

Maine imposes an estate tax on estates valued at $1 million or more, regardless of federal law.  There is no inheritance tax.

Maine payroll taxes

State Disability Insurance – none

State Unemployment Insurance - .92% to 8.01%, wage base is $12,000.  Employer contribution is 1.53%.

Minimum wage - $7.50/hr

Maine state property tax

All property is taxable in Maine unless otherwise noted.  Government and school properties are exempt from taxation.  The Maine State property tax is collected at the local level, which assesses property.  Maine offers a homestead exemption on $10,000 on the person’s house if it is intended to be a permanent home.

Exemptions

There is an exemption of up to $6,000 for veterans over the age of 62 and served in a recognized war period or is receiving 100% disability veteran’s benefit.  This increases to $50,000 for paraplegic veterans.  

Legally blind individuals receive an exemption of $4,000.

Corporate income tax

Under $ 25,000          3.5% of federal taxable income

$ 25,000 - $ 75,000   $875 plus 7.93% of the excess over $ 25,000

$ 75,000 - $ 250,000 $4,840 plus 8.33% of the excess over $ 75,000

$ 250,000 or more    $19,418 plus 8.93% of the excess over $250,000

Misc

Military personnel are taxed by federal income tax laws, unless they make non-military income in Maine.  The military income is not used in determining income for taxation in Maine.  Military benefits are not taxed.

Related Topics