Maine Income Tax Calculator

Taxes in Maine

Maine State Tax Quick Facts

• Income tax: 5.80% - 7.15%
• Sales tax: 5.50%
• Property tax: 1.28% effective rate
• Gas tax: 30 cents per gallon of regular gasoline, 31.2 cents per gallon of diesel

Maine has cut income taxes multiple times in recent years. In 2011, lawmakers lowered the income tax rate from 8.5% to 7.95%. That was one of the largest tax cuts in the state’s history. For the 2016 tax year, the highest tax rate was lowered again to 7.15%, where it has remained through at least the 2024 tax year. The state’s top rate still ranks as one of the highest in the U.S. Maine’s statewide sales tax of 5.50% also ranks among the lowest in the country, especially because there are no county or city sales taxes anywhere in the state.

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Maine Income Taxes

The state income tax in Maine is based on just three brackets. Earners with incomes landing in the bottom bracket pay a rate of 5.80%. Meanwhile, top earners face a rate of 7.15%. The income brackets and rates for tax year 2023 are below:

Maine’s tax system conforms to the federal tax system in most ways, which means taxable income and deductions for the two are very similar. In fact, Maine taxes are based on federal adjusted gross income (AGI), although there are some differences and items that you may need to add to or subtract from your total income before applying the tax rates above.

The most significant addition to Maine taxes is for income from municipal and state bonds outside of the state of Maine. Any income from, for example, a City of Boston municipal bond must be added back to your total income. Income from such bonds are exempted from federal taxes.

Items that can be subtracted from your income for the purposes of calculating Maine’s state income tax include Social Security benefits (if included in federal AGI), income from obligations of the U.S. government (such as savings bonds or U.S. Treasury bills) and up to $30,000 in eligible pension payments to you and your spouse (less Social Security payments) in tax year 2023 and $35,000 in tax year 2024.

Itemized deductions match federal itemized deductions, and can only be claimed if you claim itemized deductions on your federal tax return. If you claim the standard deduction federally, you must also do so on your Maine tax return. In 2023, the standard deduction in Maine is $13,850 for single filers and married persons filing separately and $27,700 for joint filers. For tax year 2024, the standard deduction jumps to $14,600 for single filers and $29,200 for married couples filing jointly. Exemptions likewise match federal rules.

Maine Tax Credits

Maine has a number of tax credits that benefit taxpayers in certain situations. The Maine Property Tax Fairness Credit is available to low-income homeowners who paid property tax on a primary residence in the past year. The benefit for this credit for single filers is $750, depending on filing status and the number of exemptions claimed.

The Child Care Credit is a partially refundable credit for child care expenses. It is equal to 25% of regular expenses and 50% of “quality” expenses (which require a certificate from your childcare provider). The first $500 of this credit is refundable.

The Educational Opportunity Tax Credit, a partially refundable credit for graduates from a Maine college or university with degrees in science, technology, engineering or math, has been replaced by the Student Loan Repayment Tax Credit. This credit is for Maine residents who "obtained an associate, bachelor’s or graduate degree after 2007 from an accredited Maine or non-Maine community college, college, or university" and makes at least the state minimum wage. The credit is worth up to $2,500 per year and $25,000 per taxpayer over the course of their lifetime. 

Maine Capital Gains Tax

Maine taxes both long- and short-term capital gains at the full income tax rates described in the income tax section above. This means that income from capital gains can face a state rate of up to 7.15% in Maine.

Maine Sales Tax

Maine levies taxes on “tangible personal property,” which includes physical and digital products, as well as some services. The general sales tax rate is 5.50%. Since there are no local sales taxes, that is the highest rate you will pay anywhere in the state. Some goods are specifically exempt from taxation, most notably groceries, prescription drugs, prosthetic devices, diabetic supplies, crutches, wheelchairs and newspapers.

Taxable services are subject to a higher rate of 6%. Services that are taxed in Maine include: cable and satellite television service, rentals of videos or video equipment, rentals of furniture, rentals of audio or audio equipment, telecommunications services and certain types of support and training services (like alcoholism recovery centers).

Maine Property Tax

Property taxes in Maine are an important source of revenue for local governments and school districts. The typical homeowner with a home of median value ($212,100) pays an effective property tax rate of 1.28%, which is above the national average. However, the typical property tax bill is $2,722 per year, which is slightly below the national average. As described above, low-income homeowners may be able to claim a tax credit to offset the cost of their property taxes.

If you’re considering purchasing a home in Maine, our Maine mortgage guide lays out the key information about getting a mortgage in the Pine Tree State. It offers details on rates and the various kinds of loans available.

Maine Estate Tax

For deaths in 2023, the estate tax in Maine applies to taxable estates with a value over $6.41 million. For deaths that occur in 2024, the estate tax applies to taxable estates worth more than $6.8 million. Estates above those threshold are taxed as follows: 8% on first $3 million above the threshold; 10% on the next $3 million; and 12% on all remaining value. That means any taxable estate with a value over $12 million will face the top marginal rate.

Maine Gas Tax

The state excise tax on gas in Maine is 30 cents per gallon of regular gasoline. Additional levies on fuel are collected for the Ground and Surface Waters Clean-up and Response Fund. Meanwhile, total taxes on diesel are 31.2 cents per gallon..

Maine Cigarette Tax

If you buy cigarettes in Maine, you’ll have to pay the state’s cigarette tax. It adds up to $2.00 per pack.

Maine Alcohol Tax

Maine is an alcoholic beverage control state, meaning the state’s Bureau of Alcoholic Beverages and Lottery Operations controls the wholesale of liquor and fortified wines within the state. Taxes are included within sale prices, which means those prices are higher than they otherwise would be. Liquor that's sold for on-premises consumption is taxed at 8%, while liquor sold for off-premises consumption is taxed at the normal state sales tax rate of 5.5%. The beer tax is 35 cents per gallon, and the wine tax is $0.60 per gallon.

• Maine has the lowest population density of any state east of the Mississippi.
• West Quoddy Head, Maine is the easternmost point in the 50 states, and, therefore, the closest to Europe.
• The largest cities in Maine are Portland, Lewiston and Bangor. The capital, Augusta, has fewer than 20,000 residents.