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.
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.
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.
Unlike many states, Maine only has a states sales tax (i.e. no local sales tax). Maine’s State sales tax is 5.50%.
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%.
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 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:
Maine is one of the more expensive states in regards to opening an LLC. Here are some important facts:
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