How Much Is Maine State Income Tax?

Maine operates a progressive income tax system, taxing higher incomes at higher rates to distribute the tax burden based on financial capacity. Understanding Maine’s income tax involves reviewing applicable rates, determining taxable income, considering deductions and credits, and knowing filing procedures. The Maine Revenue Services website serves as an official resource for detailed tax information.

Maine Individual Income Tax Rates

For the 2024 tax year, Maine uses a three-bracket income tax system, with rates from 5.8% to 7.15%. This graduated approach taxes only portions of income falling into a higher bracket at that increased rate, not the entire income. Specific income thresholds apply for different filing statuses.

For single individuals and married persons filing separately, taxable income up to $26,050 is taxed at 5.8%. Income between $26,050 and $61,600 is taxed at $1,511 plus 6.75% of the amount over $26,050. For taxable income of $61,600 or more, the rate is $3,911 plus 7.15% of the amount exceeding $61,600.

Married individuals and surviving spouses filing joint returns have different thresholds. Their taxable income up to $52,100 is taxed at 5.8%. The next bracket, from $52,100 to $123,250, is taxed at $3,022 plus 6.75% of the excess over $52,100. For taxable income of $123,250 or more, the tax is $7,825 plus 7.15% of the amount above $123,250. Unmarried or legally separated individuals who qualify as heads of household also have their own set of brackets.

Determining Your Maine Taxable Income

Calculating your Maine taxable income begins with your Federal Adjusted Gross Income (AGI). This federal figure is the foundational amount before state-specific adjustments are applied. Maine requires certain additions to or subtractions from Federal AGI to arrive at the state’s adjusted gross income, which then leads to Maine taxable income.

Common additions include interest income from out-of-state bonds. Subtractions can reduce your AGI, such as certain pension income, which saw an increased deduction for 2024. Income from U.S. Space Force military pay and annuity payments to survivors of deceased military members may also be subtracted. These adjustments reflect Maine’s specific tax policies and can significantly alter the income amount subject to state taxation. The resulting figure is the base upon which Maine’s tax rates are applied, prior to considering deductions and credits.

Available Maine Deductions and Credits

Maine offers various deductions and tax credits to reduce an individual’s tax liability. Deductions lower the amount of income subject to tax, while credits directly reduce the actual tax owed. Taxpayers generally choose between a standard deduction or itemized deductions, depending on which provides a greater tax benefit.

For the 2024 tax year, Maine’s standard deduction amounts are $14,600 for single filers and married individuals filing separately. Married couples filing jointly can claim $29,200, while heads of household are eligible for $21,900. The state also provides a personal exemption of $5,000 for the taxpayer, and for married filing jointly, for their spouse. Additional amounts are available for taxpayers age 65 or over, or who are blind.

Several tax credits are available. The Dependent Exemption Tax Credit is up to $300 for each qualifying child or dependent for whom a federal child tax credit was claimed. This credit became refundable for Maine residents and part-year residents for tax years beginning on or after January 1, 2024, though it is subject to a phase-out for higher incomes.

The Property Tax Fairness Credit allows eligible Maine residents to receive a refundable credit if their property tax or rent exceeds a certain percentage of their income. For those aged 65 or older, the maximum benefit for this credit increased to $2,000 for the 2024 tax year. Other credits include the Maine Earned Income Credit, which is a percentage of the federal credit, and a refundable Student Loan Repayment Credit.

Filing Your Maine Income Tax Return

After determining your taxable income and applying deductions and credits, the final step involves submitting your Maine income tax return. The primary filing deadline for most individual income tax returns is April 15th, following the close of the tax year. If this date falls on a weekend or holiday, the deadline shifts to the next business day.

Maine automatically grants a six-month extension to file individual income tax returns, pushing the filing deadline to October 15th. This extension applies only to filing the return, not to the payment of any tax due. Any tax owed must still be paid by the April 15th deadline to avoid penalties and interest charges.

Taxpayers have several options for filing their Maine return. Electronic filing is available through commercial tax software or directly via the Maine Tax Portal. Paper forms, such as Form 1040ME, are also available for download from the Maine Revenue Services website for those who prefer to file by mail. Payments can be made electronically through the Maine Tax Portal or by sending a check or money order with a payment voucher. Maine Revenue Services does not accept credit card payments directly.