![]() Treasury bills) and up to $10,000 in eligible pension payments to you and your spouse (less Social Security payments). government (such as savings bonds or U.S. Items that can be subtracted from your income for the purposes of calculating Maine’s state income tax include Social Security benefits (if included in federal AGI), income from obligations of the U.S. Income from such bonds are exempted from federal taxes. Any income from, for example, a City of Boston municipal bond must be added back to your total income. The most significant addition to Maine taxes is for income from municipal and state bonds outside of the state of Maine. In fact, Maine taxes are based on federal adjusted gross income (AGI), although there are some differences and items that you may need to add to or subtract from your total income before applying the tax rates above. Maine’s tax system conforms to the federal tax system in most ways, which means taxable income and deductions for the two are very similar. Meanwhile, top earners face a rate of 7.15%. Earners with incomes landing in the bottom bracket pay a rate of 5.80%. The state income tax in Maine is based on just three brackets. ![]() If you’re ready to find an advisor who can help you achieve your financial goals, get started now. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. Maine’s statewide sales tax of 5.50% also ranks among the lowest in the country, especially because there are no county or city sales taxes anywhere in the state.Ī financial advisor can help you understand how taxes fit into your overall financial goals. The state’s top rate still ranks as one of the highest in the U.S. For the 2016 tax year, the highest tax rate was lowered again to 7.15%, where it has remained through at least the 2021 tax year. That was one of the largest tax cuts in the state’s history. In 2011, lawmakers lowered the income tax rate from 8.5% to 7.95%. Maine has cut income taxes multiple times in recent years. Gas tax: 30 cents per gallon of regular gasoline, 31.2 cents per gallon of diesel.Property tax: 1.09% average effective rate.
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