State Income Tax

Income Tax in Maine: Complete Guide 2026

Updated 2026-03-11

Data Notice: Figures, rates, and statistics cited in this article are based on the most recent available data at time of writing and may reflect projections or prior-year figures. Always verify current numbers with official sources before making financial, medical, or educational decisions.

Income Tax in Maine: Complete Guide 2026

Tax information is for educational purposes only and does not constitute tax advice. Consult a licensed tax professional for your specific situation.

Maine imposes a graduated individual income tax with three brackets and a top marginal rate of approximately ~7.15% on income above ~$58,050 for single filers. The state provides a relatively generous standard deduction and personal exemption, along with several credits aimed at lower-income residents and families. Maine also imposes an additional surcharge on very high incomes through its tax conformity with federal provisions. The state has no local income taxes, so the state rate represents the full income tax burden for residents.

Maine Income Tax Rates (2026)

Single Filers

Taxable Income BracketMarginal Rate
$0 to ~$25,450~5.80%
~$25,451 to ~$58,050~6.75%
Over ~$58,050~7.15%

Married Filing Jointly

Taxable Income BracketMarginal Rate
$0 to ~$50,900~5.80%
~$50,901 to ~$116,100~6.75%
Over ~$116,100~7.15%

How Maine Income Tax Works

Graduated Rate Structure

Maine’s three-bracket system is moderately progressive. The top rate of ~7.15% applies at a relatively low income threshold compared to other high-tax states, meaning middle-income earners in Maine face the top rate sooner than they would in states like California or New York.

Standard Deduction and Personal Exemption

  • Standard deduction: ~$14,600 for single filers; ~$29,200 for married filing jointly (Maine conforms to federal amounts)
  • Personal exemption: ~$4,700 per taxpayer, spouse, and dependent (phased out at higher income levels)
  • Itemized deductions: Maine allows itemized deductions with a limitation that reduces total itemized deductions by 3% of the amount by which AGI exceeds a threshold ($89,850 for single filers)

Key Exclusions and Adjustments

  • Social Security: Maine conforms to the federal treatment, meaning up to ~85% of benefits may be taxable depending on combined income
  • Pension income deduction: Maine allows a deduction of up to ~$25,000 of eligible pension and retirement income, reduced by Social Security and Railroad Retirement benefits received
  • Military retirement: Included in the pension income deduction
  • Maine 529 plan contributions: Not deductible for state income tax purposes

Tax Credits

  1. Maine earned income credit: ~12% of the federal EITC (refundable)
  2. Property Tax Fairness Credit: A refundable credit for residents whose property taxes or rent exceed ~6% of income, up to ~$750 for non-elderly and ~$1,200 for filers 65+
  3. Child care credit: ~25% of the federal child and dependent care credit
  4. Sales tax fairness credit: ~$40 per qualifying individual for lower-income filers
  5. Opportunity Maine Tax Credit: For recent graduates paying student loans, providing a credit for loan payments up to the income tax liability

Who Must File in Maine

Filing is required if:

  • You are a Maine resident with gross income exceeding the sum of the standard deduction and personal exemption
  • You are a part-year resident or nonresident with Maine-source income
  • You want to claim the Property Tax Fairness Credit, earned income credit, or other refundable credits

Maine uses Form 1040ME for all filers. The filing deadline is April 15.

Comparison to National Average

StateTop Income Tax RateStructure
Maine~7.15%Graduated (3 brackets)
Vermont~8.75%Graduated
New Hampshire~0% (interest/dividends only phasing out)Limited
Massachusetts~9.0% (with millionaire surcharge)Flat + surcharge
National average~4.60%Varies

Maine’s top rate is above the national average and comparable to other New England states. The Property Tax Fairness Credit and earned income credit help moderate the effective burden for lower-income households.

Tips for Minimizing Maine Income Tax

  1. Claim the Property Tax Fairness Credit. Homeowners and renters whose housing costs exceed ~6% of income should file Schedule PTFC to receive up to ~$750 (or ~$1,200 for seniors).

  2. Use the pension income deduction. Retirees can deduct up to ~$25,000 of eligible pension income, which can significantly reduce state tax on retirement distributions.

  3. Claim the Maine earned income credit. At ~12% of the federal EITC, this refundable credit provides meaningful assistance to working families with qualifying income.

  4. Review the Opportunity Maine Tax Credit. Recent college graduates repaying student loans may be eligible for a credit equal to their student loan payments, up to their income tax liability.

  5. Maximize retirement contributions. 401(k) and IRA contributions reduce your federal AGI, which flows through to your Maine return.

  6. Be aware of the itemized deduction limitation. If your AGI exceeds ~$89,850, your itemized deductions are reduced by ~3% of the excess, making itemizing less beneficial.

  7. Consider the impact of the top bracket threshold. With the top rate kicking in at ~$58,050 for single filers, strategies that reduce taxable income below this level can save ~0.40% on the marginal dollars.

Key Takeaways

  • Maine imposes a three-bracket graduated income tax with a top rate of ~7.15% starting at relatively modest income levels
  • The state conforms to the federal standard deduction and provides a personal exemption of ~$4,700 per person
  • The Property Tax Fairness Credit provides refundable relief for residents with housing costs exceeding ~6% of income
  • The pension income deduction of up to ~$25,000 benefits retirees with qualifying distributions
  • The Maine EITC equals ~12% of the federal credit and is fully refundable
  • No local income taxes are imposed in Maine

Next Steps