State taxes: Maine

Taxes » Income Taxes » State Taxes » Maine

Maine's tax system has three income brackets, with tax rates ranging from zero percent to 7.95 percent. More on Maine taxes can be found in the tabbed pages below.

Personal income tax

Maine collects income taxes from its residents utilizing three tax brackets.

For single taxpayers, they are:

  • No tax on first $5,199 of taxable income.
  • 6.5 percent on taxable income between $5,200 and $20,899.
  • 7.95 percent on taxable income of $20,900 and more.

For married taxpayers filing joint returns, they are:

  • No tax on first $10,449 of taxable income.
  • 6.5 percent on taxable income between $10,450 and $41,849.
  • 7.95 percent on taxable income of $41,850 and more.

Beginning with tax year 2016, the rate schedules will be adjusted for inflation based on the chained consumer price index.

Residents of Maine must file Form 1040ME by April 15, or the next business day if that date falls on a weekend or holiday.

Downloadable Maine tax forms are available on the Maine Revenue Services website.

Sales taxes

Maine's general sales tax rate is 5.5 percent.

The state also levies charges of 8 percent on prepared food and 10 percent on short-term auto rentals.

The general sales tax rate is scheduled to return to 5 percent (the rate prior to Oct. 1, 2013) on July 1, 2015. Similarly, the 8 percent rate will drop back to 7 percent in July. The 10 percent rate will remain in effect.

The state offers specific exemptions for a number of different kinds of organizations and institutions, such as hospitals, schools, churches and libraries. You can find a list of organizations for which there may be a Maine Sales Tax exemption on the state's Revenue website.

Personal and real property taxes

All real and tangible personal property located in the state of Maine is taxable unless specifically exempted by statute.

While property taxes in Maine are assessed at the local level, municipal assessors are governed by state statutes that are administered by the Property Tax Division of Maine Revenue Services.

The Division consists of two sections: Municipal Services and Unorganized Territory.

The administration of property taxes is handled by the local assessor in incorporated cities and towns. Property tax bills are issued by the municipality where the property is located on either an annual, semiannual or quarterly basis. Due dates vary based upon the issue date of the bill.

Eligible Maine residents who have owned homestead property in Maine for at least a year and make the property they occupy on April 1 their permanent residence can receive an exemption of $10,000. Information on other property tax exemptions can be found on the state's revenue website.

Inheritance and estate taxes

Maine imposes a tax on estates valued at $2 million or more for all decedents with property taxable to Maine. Effective since the 2013 tax year, the number of estate tax rates has been reduced to three (8 percent on value from $2 million to $5 million; 10 percent on value from $5 million to $8 million; and 12 percent on estates valued at more than $8 million.)

The Maine estate tax is applied even if there is no federal estate tax.

Maine does not collect an inheritance tax.

Other Maine tax facts

Commercial sellers of blueberries, a Maine staple, must keep records of their transactions and pay the state 1.5 cents per pound ($1.50 per 100 pounds) of the fruit sold each season. The blueberry tax, along with a report of all the sales and purchases of the commodity, the dates, names of those involved, and the number of pounds of blueberries purchased, must be filed with Maine Revenue Services on or before Nov. 1 each year.

Maine taxpayers can check the status of their state refunds online.

Maine does not levy an intangible personal property tax.

More information is available from Maine Revenue Services' website.

To download tax forms on this site, you will need to install a free copy of Adobe Acrobat Reader. Click here for instructions.


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