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Maine Tax

Maine Tax

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Maine Tax

FULL List to Maine Tax Forms

Individual Income Tax Forms

Form 1040X-ME Maine Amended Individual Income Tax Return 

Corporate Income Tax Forms

Form 1120X-ME Maine Amended Corporate Income Tax Retrun

Sales Tax Forms

Exempt Form

Form Uniform Sales and Use Certificate

There are a number of taxes applicable to the state of Maine, which includes sales tax and four income brackets for personal income taxation.  Tax returns are due on April 15.

Maine state sales tax – 5% (food and drugs exempt), $1.50 per 100 pounds of blueberries.

There are addition sales taxes of 7% of lodging and 10% on car rentals, exemptions available for schools, charities, hospitals and related organizations.

Maine state personal income tax 

Four income brackets for single filings

2% - first 4,950 of taxable income

4.5% - $4,951 - $9,850

7% - $9,851 and $19,750

8.5% - $19,751+

For married couples

2% - first 9,950 of taxable income

4.5% - $9,951 - $19,750

7% - $19,751 and $39,550

8.5% - $39,551+

Maine state excise taxes

Taxes are assessed on vehicles, alcohol, tobacco, gasoline, forested property and are in addition to federal excise taxes. 

$2.00/package of 20 cigarettes

$4.56 tax per gallon of liquor

$.35 per gallon of beer

$.60 per liter of wine 

Vehicles – MSRP multiplied by the “millage rate.”  The age of the car determines the “mil rate”

Gasoline – 31 cents/gallon

Diesel – 32.2 cents/gallon

Taxation on landowners of 500 acres of commercial forest land for forest fire prevention expenditures, which is generally 35 to 45 cents per acre.

Maine estate tax 

Maine imposes an estate tax on estates valued at $1 million or more, regardless of federal law.  There is no inheritance tax.

Maine payroll taxes

State Disability Insurance – none

State Unemployment Insurance - .92% to 8.01%, wage base is $12,000.  Employer contribution is 1.53%.

Minimum wage - $7.50/hr

Maine state property tax

All property is taxable in Maine unless otherwise noted.  Government and school properties are exempt from taxation.  The Maine State property tax is collected at the local level, which assesses property.  Maine offers a homestead exemption on $10,000 on the person’s house if it is intended to be a permanent home.

Exemptions

There is an exemption of up to $6,000 for veterans over the age of 62 and served in a recognized war period or is receiving 100% disability veteran’s benefit.  This increases to $50,000 for paraplegic veterans.  

Legally blind individuals receive an exemption of $4,000.

Corporate income tax

Under $ 25,000          3.5% of federal taxable income

$ 25,000 - $ 75,000   $875 plus 7.93% of the excess over $ 25,000

$ 75,000 - $ 250,000 $4,840 plus 8.33% of the excess over $ 75,000

$ 250,000 or more    $19,418 plus 8.93% of the excess over $250,000

Misc

Military personnel are taxed by federal income tax laws, unless they make non-military income in Maine.  The military income is not used in determining income for taxation in Maine.  Military benefits are not taxed.

Sales Tax

Over the years, Maine sales tax has varied in terms of both increases and decreases. In general, Maine sales tax is that which is placed upon all items considered either “tangible personal property” or “taxable services sold at retail” within the state of Maine. According to Maine law, personal property encompasses that which may be physically seen as well as measured or weighed, and felt. Although, most services are not usually taxed, examples of some that are include: rental of hotel rooms, automobiles, as well as phone services you pay for in advance.

In order to better understand Maine sales tax law, we must also ascertain the definition that the state applies to the term “sale.” It is described as any transaction, which may include “leases and contracts” that must be compensated in order to acquire and use, but only when the ‘State Tax Assessor’ labels them as part of a purchase. Quite another distinction occurs when the term “retail” is added to the mix as we have mentioned early in relation to the employment of sales tax. Four Maine sales tax rates cover that of general services at 5%, lodging/prepared food at 7%, and short term auto rental at 10%.

Exemptions to Maine sales tax also exist, which is exhibited by some organizations that fall under the following general categories: medical/health care, educational, governmental, religiously affiliated, and nonprofits. Specific organizations that may find themselves eligible include those that distribute ambulance services, dyslexia aid for kids, fire departments, churches, nursery schools, and animal shelters.

Income Tax

When referencing Maine income tax, one must take into account individual as well as business income tax. In relation to individual Maine income tax, a general income tax is placed upon any individuals who derive their income from the state. This may range from 2% to that of 8.5%. In addition, if you are in the possession and ownership of an estate, you will also incur estate taxes. Maine places a specified tax upon estates that are worth more than a million dollars. 

This applies, according to Maine tax law, despite a lack of a federal estate tax. Corporations are taxed according to Maine income tax law with amounts varying from 3.5% for income $25,000 or below, and 8.93% for that which exceeds $250,000. S-corporations, however, are exempt from corporate income tax impositions. Despite its exemption, an S-corporation must still file returns each year in order to inform the state of Maine of the incomes of the company as well as its partners and shareholders. 

In the event that the company includes individuals who are not actually residents of Maine, the company may require adherence to “withholding requirements” for those members. In such a case, the company may choose to file a “composite” tax return in order to encompass all nonresident income into on return.

 


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