STATE RANKING #39

Tax Facts: 

-The State of Maine has both Corporate income tax and personal income tax rates with maximum rates of 8.93% and 7.15%, respectively. Maine is also one of the only states in the union to have an estate tax. Read more below.

 

8.93%

State Income Tax

State
Income
Tax

7.15%

Cost of Setting Up A Business

state
business
tax

HIGH

Property
Taxes

5.50%

Sales
Tax (average)

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 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 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.

Unemployment 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
  • If you would like help setting up your LLC, we recommend using IncFile.com. They are simple and easy to use.

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