What Changes in Your Paycheck in Maine
Your paycheck in Maine shows a Maine state income tax line item that grows progressively with income, starting at 5.8% for the first $1-$1. For a $1 salary, you might see ~ $1-$1 annually (~ $1-$1 per biweekly paycheck) for state tax, reflecting the progressive brackets with effective rates around 6%-6.5%. Maine paychecks only show state and federal tax deductions—no local income tax line items. The progressive brackets mean your state tax increases as you move through brackets, with higher earners reaching the 7.15% top rate. The high starting rate (5.8%) means even lower earners pay relatively high taxes compared to states with lower starting brackets.
Example State Tax in Maine
What you'll pay in Maine state income tax at different salary levels (single filer, no deductions):
| Gross Salary | State Tax (Year) | Effective Rate |
|---|---|---|
| $50,000 | $3,142 | 6.3% |
| $75,000 | $4,896 | 6.5% |
| $100,000 | $6,683 | 6.7% |
| $150,000 | $10,258 | 6.8% |
Use the calculator above to see your exact take-home pay with your filing status and deductions.
Is Maine Better for You?
Maine works well for:
Maine is relatively challenging for most income levels due to the high starting rate (5.8%), but lower-income earners (under ~ $1 for singles, $1 for couples) benefit slightly from the 5.8% rate compared to the higher 6.75%-7.15% rates for higher earners. Retirees also benefit from exemptions on Social Security and most retirement income, making Maine attractive for those relying on retirement savings However, Maine's high starting rate means most earners pay relatively high effective rates compared to other states.
Maine may not be ideal if:
Maine is challenging for most earners due to the high starting rate (5.8%) and high top rate (7.15%). A $1 earner pays an effective rate around 6%-6.5% (~ $1-$1 annually), while the same earner in a flat-tax state like Pennsylvania would pay $1 (3.07% flat, though PA may have local EIT), and in Illinois would pay $1 (4.95% flat). High earners face the 7.15% rate, making Maine one of the higher-tax states. Most earners with geographic flexibility would save $1-$1+ annually by moving to lower-tax states.
Common Mistakes People Make
Misconception: 'Progressive tax means I'll pay the top 7.15% on all my income in Maine.' Reality: Maine's progressive system starts at 5.8% for the first $1-$1 of income (depending on filing status), and most middle-income earners pay effective rates around 6%-6.75%, not 7.15%. The 7.15% rate only applies to income above $1 (single) or $1 (married). Someone earning $1 pays an effective rate around 6%-6.5% (~ $1-$1 annually).
Misconception: 'Maine has low taxes because it's a small state.' Reality: Maine's income tax starts at 5.8% (relatively high starting rate) and tops out at 7.15%, which is higher than many progressive states' effective rates for middle-income earners. A $1 earner in Maine pays around 6%-6.5% effective rate, while the same earner in a flat-tax state like Pennsylvania would pay $1 (3.07% flat, though PA may have local EIT), and in Illinois would pay $1 (4.95% flat). Maine's high starting rate means even lower earners pay more than in many other states.
Misconception: 'The three brackets mean my tax is simple like flat-tax states.' Reality: While Maine has only three brackets (simpler than states with many brackets), the brackets are progressive with rates ranging from 5.8% to 7.15%. Unlike flat-tax states where everyone pays the same percentage, Maine's progressive system means higher earners pay higher effective rates The high starting rate (5.8%) also means even lower earners pay more than in states with lower starting brackets or flat taxes.
Key Facts That Affect Your Take-Home Pay
- Maine uses a progressive income tax system with three brackets, starting at 5.8% for the first $1 of income (single) or $1 (married) and escalating to a top rate of 7.15% for income above $1 (single) or $1 (married), making Maine's bracket structure relatively simple but with relatively high starting rates compared to other progressive states.
- Maine's progressive brackets have a relatively high starting rate (5.8%) compared to many other progressive states that start at 1%-3%, meaning even lower earners pay a higher percentage in Maine. For a $1 earner, income is taxed at 5.8% and 6.75%, creating an effective rate around 6%-6.5%, with most income taxed at the higher brackets.
- Maine does not impose income taxes at the city or county level, so your income tax structure doesn't vary by location. All Maine residents have the same income tax structure—only the state progressive brackets apply.
One Thing to Know
Maine's starting rate of 5.8% is unusually high—most progressive states start at 1%-3%. This means even someone earning $1 pays a higher effective rate in Maine than they would in many other states, which surprises people who assume 'progressive' always means lower earners pay less.
Important Notes
These calculations are estimates based on current tax law. Your actual take-home pay varies based on:
- Pre-tax deductions (401(k), health insurance, HSA, etc.)
- Your W-4 withholding elections
- Additional income or deductions at tax time
- Individual circumstances and tax situations
Tax rates are subject to change. Federal and state tax laws may be updated annually. This is not tax advice. For personalized help, consult a tax professional familiar with Maine tax laws.