Maine state taxes 2022: Income and sales tax rates
If you live and work in Maine, you must have state income taxes withheld and file a tax return annually. Maine has a graduated-rate income tax, and your income determines the tax rate you pay.
Maine personal income tax rates: Table
Maine residents will fall into one of three tax brackets.
Maine personal income tax rates | ||
---|---|---|
Tax rate | Single, married filing separate | Married filing jointly |
5.80% | $0-$22,999 | $0-$45,999 |
6.75% | $23,000-$54,449 | $46,000-$108,899 |
7.15% | $54,450 or more | $108,900 or more |
Source: Maine.gov |
When filing a return, you can take advantage of Maine’s standard deduction and exemptions. For a single filer, you can claim a deduction of $12,950, while married taxpayers can take the $25,900 deduction. For exemptions, single taxpayers can claim $4,450, married filers have an $8,900 exemption.
Who has to file Maine state taxes?
You are a resident of Maine if you lived in the state for at least 183 days of the tax year. If you moved out of state for any portion of the year, you still must file. However, you can use the nonresident tax credit to offset the tax payments you made to another state after you moved.
Meanwhile, if you own a business based in Maine, you will also need to file a tax return. The top corporate tax rate is 8.93 percent.
Maine sales tax rate: Table
Maine residents enjoy a low sales tax rate.
Maine sales tax rates | ||||
---|---|---|---|---|
Sales tax rate | National rank | |||
5.5% | 29 | |||
Source: Tax Foundation |
Maine does not combine state and local taxes to calculate its sales tax rate. Instead, it only uses the state tax rate of 5.5 percent.
Other things to know about Maine state taxes
Maine offers low tax rates on specific items. Its gasoline tax is 30.01 cents per gallon, while the cigarette tax is $2.00 (dollars per 20-pack).
Meanwhile, Maine provides tax exemptions for military veterans or survivors whose income is from a military retirement plan. You can find this information, tax credits, and file your tax return online at the Maine Revenue Services website.
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