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Maine State Taxes

Maine State Taxes

State Taxes at a Glance – Maine

Type of Tax2023
Individual Rates5.80% to 7.15%
Corporate / Business Tax Rates3.50% to 8.93%
Gross Receipts TaxNone
Sales Tax5.50% (average)
Property Taxes1.25% as a percentage of primary home
Estate or Inheritance TaxYes

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%.

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 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 1.25%, which is well above the national average of 1.08%.

Estate Tax in Maine

The state of Maine is one of a few states that does have an estate tax that ranges from 8% to 12% depending on the size of the estate. The first $6 Million dollars of the estate is exempt from tax.

Maine DMV Fees

The state of Maine imposes an excise tax on the vehicle’s MSPR value, based on the city or county you live in. That means it is deductible on your federal tax return. You may look up your Maine DMV fees here.

Maine Domicile

Maine’s presumption is that it’s your permanent place of abode (domicile) if you’ve lived there for over 183 days within a taxable year.

State Tax on Social Security Benefits

Even though Maine has an income tax, social security benefits are not subject to state tax in “The Pine Tree State.”

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 0.07% to 6.01% 
  • 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