About Maine State Income Tax

Maine uses a progressive tax system with three tax brackets. Maine is known for having one of the higher state income tax rates in the nation, with a top rate of 7.15% for higher-income earners.

Maine Tax Brackets 2026

• $0 - $25,100: 5.8%
• $25,101 - $58,800: 6.3%
• Over $58,800: 7.15%

How Maine Tax is Calculated

Maine's progressive tax system works as follows:

1. Income is divided into three tax brackets
2. Each bracket is taxed at its corresponding rate
3. Higher earners pay the top rate of 7.15%
4. Standard deduction reduces taxable income

Maine Tax Features

• Higher Top Rate: 7.15% is among the highest in the nation
• Progressive System: Graduated brackets ensure fairness across income levels
• Retirement Income: Limited exemptions available for qualifying retirees
• Social Security: Not taxed by Maine state

Frequently Asked Questions

What is Maine's income tax rate?

Maine has progressive tax rates from 5.8% to 7.15%. The top rate of 7.15% applies to income over $58,800, making Maine one of the higher-tax states in the nation.

Does Maine tax retirement income?

Maine offers some relief for retirement income. Taxpayers age 67 and older can exclude a portion of retirement income from taxation if their total income is below certain thresholds.

Does Maine tax Social Security?

No, Maine does not tax Social Security retirement benefits, which provides some relief for retirees despite the higher overall tax rates.

How does Maine compare to neighboring states?

Maine (7.15%) is higher than most neighbors: New Hampshire (0% on wages), Massachusetts (5%), Vermont (6.75%), and Rhode Island (6.75%). This makes Maine one of the most expensive states for income tax in New England.

Maine vs. Neighboring States

Tax comparison with surrounding states:

• New Hampshire: No state income tax (5.2% on dividends/interest only)
• Massachusetts: Flat 5% state income tax
• Vermont: Progressive up to 6.75%
• Rhode Island: Progressive up to 6.75%

Tips for Maine Taxpayers

• Understand that Maine has higher state income taxes compared to neighboring states
• Age 67+ may qualify for retirement income exclusion
• Social Security is not taxed in Maine
• Consider tax-advantaged retirement accounts to reduce taxable income
• Track your filing status changes as they significantly affect tax liability