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Maine Income Tax Calculator

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Overview of Maine Taxes

Maine has a progressive tax system with the tenth highest top marginal tax rate and the lowest bottom rate (of 0%). The state sales tax is among the lowest in the country and there are no additional local sales taxes collected throughout the state. Retired? Use our Retirement Income Tax Calculator.

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Household Income
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Location
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Filing Status
401(k) Contribution
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IRA Contribution
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Itemized Deductions
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Number of Personal Exemptions
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Your Income Taxes Breakdown

Tax Type Marginal 
Tax Rate
Effective 
Tax Rate
2017 
Taxes
2018 Trump Taxes*
Federal
FICA
State
Local
Total Income Taxes
Income After Taxes

* These will be the taxes owed for the 2018 - 2019 filing season.

Under the Trump Tax Plan (2018-2019 filing season), your Federal Income Tax will be and your FICA will be .

Changes to Your Federal Income
Taxes Under the Trump Tax Plan

  • Your marginal federal income tax rate will
  • Your effective federal income tax rate will
  • Your federal income taxes will

Total Estimated Tax Burden

Income Tax $
Sales Tax $
Fuel Tax $
Property Tax$
Total Estimated Tax Burden $
Percent of income to taxes = %
$
  • About This Answer

    Our income tax calculator calculates your federal, state and local taxes based on several key inputs: your household income, location, filing status and number of personal exemptions. Also, we separately calculate the federal income taxes you will owe in the 2018 - 2019 filing season based on the Trump Tax Plan.


    How Income Taxes Are Calculated

    • First, we calculate your adjusted gross income (AGI) by taking your total household income and reducing it by certain items such as contributions to your 401(k).
    • Next, from AGI we subtract exemptions and deductions (either itemized or standard) to get your taxable income. Exemptions can be claimed for each taxpayer as well as dependents such as one’s spouse or children.
    • Based on your filing status, your taxable income is then applied to the the tax brackets to calculate your federal income taxes owed for the year.
    • Your location will determine whether you owe local and / or state taxes.
    ...read more
  • Last Updated: January 31, 2018

    When Do We Update? - We regularly check for any updates to the latest tax rates and regulations.

    Customer Service - If you would like to leave any feedback, feel free to email info@smartasset.com.

    ...read more
  • Our Tax Expert

    Jennifer Mansfield, CPA Tax

    Jennifer Mansfield, CPA, JD/LLM-Tax, is a Certified Public Accountant with more than 30 years of experience providing tax advice. SmartAsset’s tax expert has a degree in Accounting and Business/Management from the University of Wyoming, as well as both a Masters in Tax Laws and a Juris Doctorate from Georgetown University Law Center. Jennifer has mostly worked in public accounting firms, including Ernst & Young and Deloitte. She is passionate about helping provide people and businesses with valuable accounting and tax advice to allow them to prosper financially. Jennifer lives in Arizona and was recently named to the Greater Tucson Leadership Program.

    ...read more
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Maine state tax quick facts
  • Income tax: 5.8% - 7.15%
  • Sales tax: 5.5%
  • Property tax: 1.30% average effective rate
  • Gas tax: 30.01 cents per gallon of regular gasoline, 31.21 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%.The state’s top rate still ranks as one of the highest in the U.S. Maine’s statewide sales tax of 5.5% also ranks among the lowest in the country - especially because there are no county or city sales taxes anywhere in the state.

Maine Income Tax

The state income tax in Maine is based on just three brackets. Earners with incomes landing in the bottom bracket pay a rate of 5.8%. Meanwhile top earners face a rate of 7.15%. The table below shows the tax brackets and rates for all filing statuses in Maine.

Income Tax Brackets

Single Filers
Maine Taxable IncomeRate
Less than $21,1005.80%
over $21,100 but less than $50,0006.75%
$50,000+7.15%
Married, Filing Jointly
Maine Taxable IncomeRate
Less than $42,2505.80%
over $42,250 but less than $100,0006.75%
$100,000+7.15%
Married, Filing Separately
Maine Taxable IncomeRate
Less than $21,1005.80%
over $21,100 but less than $50,0006.75%
$50,000+7.15%
Head of Household
Maine Taxable IncomeRate
Less than $31,6505.80%
over $31,650 but less than $75,0006.75%
$75,000+7.15%

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 off 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.

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 $10,000 in eligible pension payments to you and your spouse (less Social Security payments).

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 2017, the standard deduction in Maine is $11,600 for single filers and married persons filing separately, $23,200 for joint filers and $17,400 for heads of household. Exemptions likewise match federal rules - in fact, your Maine exemption amount is copied directly from your federal return. If you are looking to find some help on your taxes, consider tax preparation software like Credit Karma and TurboTax to help file your return.

Maine Tax Credits

Maine has a number of tax credits that benefit taxpayers in certain situations. We’ll describe some of the most commonly claimed credits. 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 maximum benefit for this credit is $600, 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 Credit for Educational Opportunity is a partially refundable credit for graduates with degrees in science, technology, engineering or math from a Maine college or university who made college loan payments during the tax year. This is applicable to Maine residents and part-year residents only. The Maine Seed Capital Credit is available to investors in qualified Maine businesses. This credit is given through the Finance Authority of Maine.

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 5.5%. 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 lower rate of 5%. 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 state has the 17th highest average effective property tax rate in the U.S., at 1.30%. That means, on average, Mainers pay 1.30% of their home’s value in property taxes. As described above, low-income homeowners may be able to claim a tax credit to offset the cost of their property taxes. The credit can be as much as $2,000 for single filers—enough to cover most of the average property tax bill in Maine.

If you’re considering purchasing a home in Maine and plan on using a mortgage, 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.

Calculate Your Property Taxes: Maine Property Tax Calculator

Maine Estate Tax

As of January 1, 2017, the estate tax in Maine applies to taxable estates with a value over $5.49 million. Estates above that threshold are taxed as follows: 8% on first $3 million above the threshold, $240,000 plus 10% on the next $3 million and $540,000 plus 12% on all remaining value. Any taxable estate with a value over $11.49 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 Coastal and Inland Water Fund (.0007 cents per gallon) and the Groundwater Fund (.0090 cents per gallon). That brings the total to about 30.01 cents per gallon, the 24th highest gas tax in the country. Meanwhile, total taxes on diesel are 31.21 cents per gallon, and taxes on ethanol are about 20 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, the 12th highest cigarette tax in the country. This tax could be on the way up though. In 2017, lawmakers discussed increasing the cigarette tax to $3.50 per pack of 20 cigarettes.

Maine Alcohol Tax

Maine is an alcoholic beverage control state—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 sales prices, which means sales prices are higher than they otherwise would be. The state’s excise tax on liquor is $5.82 per gallon, 24th highest in the U.S. The beer tax is 35 cents per gallon, which is 2.3 cents per beer and 17th highest in the country.

Photo credit: iStock
  • 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.

Places with the Lowest Tax Burden

Are you curious how your tax burden stacks up against others in your state? SmartAsset’s interactive map highlights the counties with the lowest tax burden. Scroll over any county in the state to learn about taxes in that specific area.

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Rank County Income Tax Sales Tax Property Tax Fuel Tax

Methodology

Where you live can have a big impact on both which types of taxes you have to pay each year and how much money you spend on them. SmartAsset calculated the amount of money a specific person would pay in income, sales, property and fuel taxes in each county in the country and ranked the lowest to highest tax burden.

To better compare income tax burdens across counties, we used the national median household income. We then applied relevant deductions and exemptions before calculating federal, state and local income taxes.

In order to determine sales tax burden we estimated that 35% of take-home (after-tax) pay is spent on taxable goods. We multiplied the average sales tax rate for a county by the household income less income tax. This product is then multiplied by 35% to estimate the sales tax paid.

For property taxes, we compared the median property taxes paid in each county.

For fuel taxes, we first distributed statewide vehicle miles traveled down to the county level using the number of vehicles in each county. We then calculated the total number of licensed drivers within each county. The countywide miles were then distributed amongst the licensed drivers in the county, which gave us the miles driven per licensed driver. Using the nationwide average fuel economy, we calculated the average gallons of gas used per driver in each county and multiplied that by the fuel tax.

We then added the dollar amount for income, sales, property and fuel taxes to rank the counties to calculate a total tax burden.

Sources: US Census Bureau 2016 American Community Survey, Government Sources, Avalara, American Petroleum Institute, GasBuddy, UMTRI, Federal Highway Administration, SmartAsset