State Income Taxes in Maine
The state of Maine does have an individual income tax. Like most states with income tax, it is calculated on a marginal scale whose range is from 5.80% to 7.15% for 2020.
State Business Taxes in Maine
The state of Maine has a business income tax. Maine’s state tax is calculated on a marginal scale whose range is from 3.50% to 8.93% for 2020. For other business entities that are flow-thru entities, such as S Corporations, Partnerships, LLCs, etc., since it flows-thru to the individual level, there is no business tax on those entities. In other words, the tax is accessed only on C Corporations.
Sales and Property Taxes in Maine
Sales Taxes in Maine – unlike many states, Maine only has a states sales tax (i.e. no local sales tax). Maine’s State sales tax is 5.50%.
Property Taxes in Maine – the average property tax rate for residential property in the state of Maine is 1.27%, which is well above the national average of 1.05%.
Estate Tax in Maine
The state of Maine is one of a few states that does have an estate tax that ranges from 0.8% to 12% depending on the size of the estate. The first $5.7 Million dollars of the estate is exempt from tax.
Payroll Taxes in Maine
Unemployment taxes usually consist of three factors. They are: the wage base, the range of UI rates, number of schedules. Below is an outline of the three:
- Wage Base – Maine has a wage base of $12,000
- UI Rates – range from 0.06% to 5.46%
- Schedules – Maine has a single rate schedule regarding UI
Maine Business Entities – LLCs
Maine is one of the more expensive states in regards to opening an LLC. Here are some important facts:
- Maine’s annual LLC fee is $85 a year
- When you register with the state, you pay a one time fee of $175
- Secretary of State of Maine website – click here