Maine Tax Calculator 2025
Calculate your Maine state income tax with our comprehensive 2025 calculator featuring the Pine Tree State's progressive tax rates from 5.8% to 7.15%, standard deductions, and advanced tax planning tools.
Calculate Your Maine Tax
Enter your income information to calculate Maine's progressive state income tax with rates ranging from 5.8% to 7.15% plus applicable deductions and exemptions.
Maine Tax Structure 2025
Maine operates a progressive income tax system with rates ranging from 5.8% to 7.15%, making it a moderate-tax state in New England. The Pine Tree State also provides various deductions and credits for property taxes and retirement income.
ME Progressive Tax Brackets (2025)
- 5.8% on income up to $24,500 (single)
- 6.75% on income $24,501 - $58,050
- 7.15% on income over $58,050
Standard Deductions (2025)
- Single: $13,850
- Married Filing Jointly: $27,700
- Married Filing Separately: $13,850
- Head of Household: $20,800
Maine Tax Benefits and Credits
Maine provides several tax benefits and credits, particularly for property taxes, working families, and retirement income. The state's tax system aims to support Maine residents through various financial incentives.
- Personal Exemption: $4,700 per taxpayer and qualifying dependent
- Earned Income Credit: Maine version of federal EIC for qualifying families
- Property Tax Credit: Credit for property taxes and rent paid
- Child Care Credit: Credit for qualifying child care expenses
- Education Credit: Credits for qualifying educational expenses
- Retirement Income Deduction: Partial deduction for certain retirement income
- Military Pay Benefits: Exemption for certain military pay and benefits
Maine Residency and Tax Planning
Understanding Maine residency requirements and tax planning strategies is important given the state's progressive tax structure and property tax considerations for comprehensive tax optimization.
Establishing ME Residency
Maine considers you a resident if your domicile is in Maine or you maintain a permanent place of abode in Maine and spend more than 183 days in the state during the tax year.
Part-Year Residents
Part-year residents pay Maine tax only on income earned while a Maine resident, with specific allocation rules for business and investment income sources.
Non-Resident Taxation
Non-residents pay Maine tax only on income sourced to Maine, including wages earned in the state, Maine rental income, and business income from Maine operations.
Property Tax Considerations
Maine's property tax system and available credits can significantly impact overall tax burden. Consider property tax credits and deductions when planning.
Frequently Asked Questions
What are Maine's income tax rates for 2025?
Maine has progressive income tax rates ranging from 5.8% to 7.15% for 2025. The rates increase across three brackets, with the top rate of 7.15% applying to income over $58,050 for single filers.
Does Maine tax retirement income?
Maine partially taxes retirement income. Social Security benefits are not taxed, but other retirement income including pensions and 401(k) distributions may be subject to Maine tax, with some deductions available for qualifying retirement income.
How does Maine's property tax system work?
Maine has relatively high property tax rates, but offers property tax and rent credits to help reduce the burden on residents. The property tax credit is available for both property taxes paid and rent.
Is Maine tax-friendly compared to neighboring states?
Maine has moderate income tax rates compared to neighboring New Hampshire (no income tax) but may be competitive with Massachusetts and Vermont when considering overall tax burden including property taxes and available credits.
How are remote workers taxed in Maine?
Maine residents working remotely pay Maine tax on all income regardless of where they work. Non-residents working remotely for Maine companies generally don't owe Maine tax unless they work physically in the state.
What deductions are available for Maine taxpayers?
Maine offers standard deductions, personal exemptions, property tax credits, retirement income deductions, and various other deductions including education credits and child care expenses.