Maine Tax Changes - October 2024
Week Of 10.14.2024
Single Filers and Married Filing Separately:
- Income less than $26,800: 5.8% tax rate
- Income between 26,800 and 26,800 and 63,450: 1,554plus6.751,554plus6.7526,800
- **Income 63,450 or more:∗∗63,450 or more:∗∗4,028 plus 7.15% of income exceeding $63,450
Head of Household:
- Income less than $40,200: 5.8% tax rate
- Income between 40,200 and 40,200 and 95,150: 2,332 plus 6.752,332 plus 6.7540,200
- **Income 95,150ormore:∗∗95,150 or more:∗∗6,041 plus 7.15% of income exceeding $95,150
Married Filing Jointly and Surviving Spouses:
- Income less than $53,600: 5.8% tax rate
- Income between 53,600 and 53,600 and 126,900: 3,109plus6.753,109plus6.7553,600
- **Income 126,900ormore:∗∗126,900ormore:∗∗8,057 plus 7.15% of income exceeding $126,900
Exemptions and Deductions:
- Personal Exemption: $5,150 per person
- Standard Deduction:
- Single: $15,000
- Married Filing Jointly: $30,000
- Head of Household: $22,500
- Married Filing Separately: $15,000
Additional Deductions for Age or Blindness:
- Married or Qualifying Surviving Spouse: $1,600
- One Spouse 65+ and Blind: $3,200
- Both Spouses 65+ (Married Filing Separately Only if Exemption Claimed): $3,200
- Both Spouses 65+ and Blind (Married Filing Separately Only if Exemption Claimed): $6,400
- Unmarried (Single or Head of Household): $2,000
- Unmarried, 65+ and Blind: $4,000
Inflation Adjustments:
- Tax Rate Tables: 1.274 factor for lowest dollar amounts, 1.269 for highest amounts
- Personal Exemption: 1.25 factor multiplied by the exemption amount
- Standard Deduction: Equal to the federal standard deduction amount
Week Of 09.30.2024
Maine General Administrative Provisions
The Maine Revenue Services has announced that the interest rate on underpayments and overpayments for calendar year 2025 will be 10%, compounded monthly. This rate is the same as the 2024 rate.
Week Of 10.14.2024
Maine Corporate Income Tax—Maine releases 2025 withholding tables.
Maine Revenue Services has released the 2025 withholding tables for personal income tax. The booklet contains instructions, the percentage method of withholding, and the wage bracket tables. (2025 Withholding Tables for Individual Income Tax, Maine Revenue Services, 10/01/2024.)
Maine Personal Income Tax—Maine releases 2025 withholding tables.
Maine Revenue Services has released the 2025 withholding tables for personal income tax. The booklet contains instructions, the percentage method of withholding, and the wage bracket tables. (2025 Withholding Tables for Individual Income Tax, Maine Revenue Services, 10/01/2024.)
Maine Releases 2025 Individual Income Tax Rate Schedules, Personal Exemption, Standard Deduction
Maine Revenue Services released the individual income tax rate schedules and personal exemption and standard deduction amounts, which are adjusted for inflation, for tax years beginning in 2025. (Individual Income Tax 2025 Rates, Maine Revenue Services, 09/15/2024.)
Single individuals and married persons filing separate returns. For single individuals and married persons filing separate returns, if the taxable income is: less than $26,800, the tax is 5.8% of Maine taxable income; $26,800 but less than $63,450, the tax is $1,554 plus 6.75% of the excess over $26,800; or $63,450 or more, the tax is $4,028 plus 7.15% of the excess over $63,450.
Unmarried or legally separated individuals who qualify as heads-of-household. For unmarried or legally separated individuals who qualify as heads-of-household, if the taxable income is: less than $40,200, the tax is 5.8% of Maine taxable income; $40,200 but less than $95,150, the tax is $2,332 plus 6.75% of the excess over $40,200; or $95,150 or more, the tax is $6,041 plus 7.15% of the excess over $95,150.
Married individuals and surviving spouses filing joint returns. For married individuals and surviving spouses filing joint returns, if the taxable income is: less than $53,600, the tax is 5.8% of Maine taxable income; $53,600 but less than $126,900, the tax is $3,109 plus 6.75% of the excess over $53,600; or $126,900 or more, the tax is $8,057 plus 7.15% of the excess over $126,900.
Personal exemption. The personal exemption amount is $5,150.
Standard deduction. The standard deduction amounts are as follows: single-$15,000; married filing jointly-$30,000; head-of-household-$22,500; and married filing separately-$15,000.
Additional amount for age or blindness. The additional amount for age or blindness is $1,600 if married (whether filing jointly or separately) or a qualified surviving spouse. The additional amount is $3,200 if one spouse is 65 or over and blind; $3,200 if both spouses are 65 or over (if married filing separately, this amount applies only if the taxpayer can claim an exemption for his or her spouse); $6,400 if both spouses are 65 or over and blind (if married filing separately, this amount applies only if the taxpayer can claim an exemption for his or her spouse). The additional amount is $2,000 if the taxpayer is unmarried (single or head-of-household). The additional amount is $4,000 if the individual is both 65 or over and blind.
Inflation adjustment. The new schedules apply the cost-of-living adjustment factor of 1.274 to the lowest dollar amounts, and the cost-of-living adjustment factor of 1.269 to the highest dollar amounts, in the tax rate tables for tax years beginning in 2025. The Maine personal exemption amount is adjusted by multiplying the cost-of-living adjustment, 1.25, by the dollar amount of the personal exemption specified in Me. Rev. Stat. Ann. Title 36 § 5126-A(1), for the taxpayer and the taxpayer's spouse, if married. The Maine standard deduction amount is equal to the federal standard deduction amount. These tax rate schedules cannot be used to determine income tax withholding from wages.
Week of 09.30.2024
Maine General Administrative Provisions—Maine releases 2025 interest rate.
Maine Revenue Services announced that the Maine interest rate on underpayments and overpayments for calendar year 2025 will be 10%, compounded monthly, which is the same as the 2024 rate. (Interest Rates, 1992 to Present, Maine Revenue Services, 09/01/2024.)
Week Of 10.14.2024
Maine Corporate Income Tax—Maine releases 2025 withholding tables.
Maine Revenue Services has released the 2025 withholding tables for personal income tax. The booklet contains instructions, the percentage method of withholding, and the wage bracket tables. (2025 Withholding Tables for Individual Income Tax, Maine Revenue Services, 10/01/2024.)
Maine Personal Income Tax—Maine releases 2025 withholding tables.
Maine Revenue Services has released the 2025 withholding tables for personal income tax. The booklet contains instructions, the percentage method of withholding, and the wage bracket tables. (2025 Withholding Tables for Individual Income Tax, Maine Revenue Services, 10/01/2024.)
Maine Releases 2025 Individual Income Tax Rate Schedules, Personal Exemption, Standard Deduction
Maine Revenue Services released the individual income tax rate schedules and personal exemption and standard deduction amounts, which are adjusted for inflation, for tax years beginning in 2025. (Individual Income Tax 2025 Rates, Maine Revenue Services, 09/15/2024.)
Single individuals and married persons filing separate returns. For single individuals and married persons filing separate returns, if the taxable income is: less than $26,800, the tax is 5.8% of Maine taxable income; $26,800 but less than $63,450, the tax is $1,554 plus 6.75% of the excess over $26,800; or $63,450 or more, the tax is $4,028 plus 7.15% of the excess over $63,450.
Unmarried or legally separated individuals who qualify as heads-of-household. For unmarried or legally separated individuals who qualify as heads-of-household, if the taxable income is: less than $40,200, the tax is 5.8% of Maine taxable income; $40,200 but less than $95,150, the tax is $2,332 plus 6.75% of the excess over $40,200; or $95,150 or more, the tax is $6,041 plus 7.15% of the excess over $95,150.
Married individuals and surviving spouses filing joint returns. For married individuals and surviving spouses filing joint returns, if the taxable income is: less than $53,600, the tax is 5.8% of Maine taxable income; $53,600 but less than $126,900, the tax is $3,109 plus 6.75% of the excess over $53,600; or $126,900 or more, the tax is $8,057 plus 7.15% of the excess over $126,900.
Personal exemption. The personal exemption amount is $5,150.
Standard deduction. The standard deduction amounts are as follows: single-$15,000; married filing jointly-$30,000; head-of-household-$22,500; and married filing separately-$15,000.
Additional amount for age or blindness. The additional amount for age or blindness is $1,600 if married (whether filing jointly or separately) or a qualified surviving spouse. The additional amount is $3,200 if one spouse is 65 or over and blind; $3,200 if both spouses are 65 or over (if married filing separately, this amount applies only if the taxpayer can claim an exemption for his or her spouse); $6,400 if both spouses are 65 or over and blind (if married filing separately, this amount applies only if the taxpayer can claim an exemption for his or her spouse). The additional amount is $2,000 if the taxpayer is unmarried (single or head-of-household). The additional amount is $4,000 if the individual is both 65 or over and blind.
Inflation adjustment. The new schedules apply the cost-of-living adjustment factor of 1.274 to the lowest dollar amounts, and the cost-of-living adjustment factor of 1.269 to the highest dollar amounts, in the tax rate tables for tax years beginning in 2025. The Maine personal exemption amount is adjusted by multiplying the cost-of-living adjustment, 1.25, by the dollar amount of the personal exemption specified in Me. Rev. Stat. Ann. Title 36 § 5126-A(1), for the taxpayer and the taxpayer's spouse, if married. The Maine standard deduction amount is equal to the federal standard deduction amount. These tax rate schedules cannot be used to determine income tax withholding from wages.
Week of 09.30.2024
Maine General Administrative Provisions—Maine releases 2025 interest rate.
Maine Revenue Services announced that the Maine interest rate on underpayments and overpayments for calendar year 2025 will be 10%, compounded monthly, which is the same as the 2024 rate. (Interest Rates, 1992 to Present, Maine Revenue Services, 09/01/2024.)