What to Know About Filing Maine Income Taxes

Three income tax rates of 5.8%, 6.75%, and 7.15% create about 47% of the state government's revenue. Maine tax rates range from 5.8% to 7.15%. The 6.75% bracket covers different income ranges depending on filing status, and the state taxes income in the highest bracket at 7.15%.

Maine Tax Rate Structure

Maine uses a graduated income tax system with three brackets for 2024. Single or Married Filing Separately:

Less than $26,050: 5.8%
$26,050 to $61,599: 6.75%
$61,600 and over: 7.15%

Married Filing Jointly:

Less than $52,100: 5.8%
$52,100 to $123,249: 6.75%
$123,250 and over: 7.15%

Head of Household:

Less than $39,050: 5.8%
$39,050 to $92,449: 6.75%
$92,450 and over: 7.15%

If a person's earnings exceed his or her personal exemptions and standard deduction, a tax return must be filed. Both residents and nonresidents need to pay taxes when they work or earn income inside the state. Every year, Form 1040ME comes due on April 15. Taxpayers may file Maine taxes online or use paper forms.

Standard Deductions for 2024

Maine's standard deductions align with federal amounts:

Single: $14,600
Married filing jointly: $29,200
Head of household: $21,900
Married filing separately: $14,600

Filing Requirements

You must file a Maine tax return if:

You're a Maine resident with tax liability or are required to file a federal return
You're a nonresident with Maine-source income that results in tax liability
You're a nonresident who worked in Maine for more than 12 days and earned over $3,000 from all Maine sources

Receive an Extension to File

When someone can't complete a return by April 15 and needs a deadline extension, he or she still has to estimate and pay the tax. Maine provides an automatic six-month extension without requiring a separate form. Always pay any estimated tax owed by the original due date to avoid penalties and interest. Taxpayers who want to update previous state tax returns must use paper forms and refer to the correct year's directions. Fill out Form 1040X-ME to amend pre-2013 returns. Individuals can update more recent filings by completing Form 1040ME.

Forms to File Maine State Taxes

Taxpayers may attach a variety of optional forms to their annual returns. Schedule PTFC enables some renters and homeowners to claim a refundable Property Tax Fairness Credit. It's possible to add charitable donations or buy state park passes by completing Schedule CP. Other forms facilitate childcare tax credits, itemized deductions and credits for paying income taxes in other states.

It's possible to track an upcoming state tax refund on the state website. Users must enter their Social Security numbers and refund amounts. To access it, go to https://revenue.maine.gov/_/.

Special Income Considerations

Maine has specific rules for different types of income:

Social Security benefits: Not taxable by Maine.
Military income: Tax-exempt for Maine residents stationed outside the state.
Retirement income: Up to $45,864 deduction for nonmilitary pensions; military pensions not taxed.
Investment income: Capital gains are taxed at the same rates as ordinary income.

Estimated Payments

Unless an employer withholds these funds, people need to make quarterly estimated payments if they owe at least $1,000 per year. They can pay online, use money orders or mail checks to :
Maine Revenue Services,
P.O. Box 9101
Augusta, ME 04332-9101

Taxpayers must fill out Form 1040ES-ME every time they submit these payments. They're due mid-month in September, January, April and June. Individuals may need to pay penalties if they underestimate their tax bills.

Fines and Penalties

The state government fines taxpayers who miss deadlines to send payments or file returns. They must pay the greater of $25 or one-tenth of the overdue amount. This penalty rises to 25% if a person neglects to follow the instructions in a printed "demand notice" from Revenue Services. People who fail to make adequate estimated payments can use Form 2210ME to find out if they face penalties. The answer partially depends on how much money an individual earned during the previous year.

Available Tax Credits

Maine offers several tax credits to reduce your tax liability:

Property Tax Fairness Credit: Up to $1,000 (up to $2,000 if 65 or older).
Earned Income Tax Credit: 25% of the federal credit.
Child Care Credit: Up to $500.
Dependent Exemption Credit: Up to $300 per child - Student Loan Repayment Credit: Refundable credit for eligible graduates.

Frequently Asked Questions

Do I have to file a Maine return if I live in New Hampshire but work in Maine?
Yes, if you're a nonresident who worked in Maine for more than 12 days and earned over $3,000 from Maine sources, you must file a Maine return.

What if I moved to or from Maine during the year?
You would file as a part-year resident, reporting income earned while a Maine resident plus any Maine-source income earned while a nonresident.

Can I deduct the property taxes I paid to Maine on my state return?
No, but you may be eligible for the Property Tax Fairness Credit, which provides a refund for eligible property tax payments.

Note: States & U.S. territories may make changes to their tax laws with little notice. We do our best to keep this information up-to-date, but it is provided on an "AS IS" basis. For more see our terms.