State Tax in Maine

The state taxation laws in Maine say that there are four income brackets. The tax rate ranges from two per cent to 8.5 per cent.

Maine Taxation Laws Maintain Rates as Follows -

  • Two per cent on the first $4,750 of taxable income
  • 4.5 per cent on taxable income that is between $4,751 and $9,450
  • Seven per cent on taxable income that is between $9,451 and $18,950
  • 8.5 per cent on taxable income that is $18,951 and above

 

State Tax Rates For Married Taxpayers Filing a Joint Return Are as Follows -

  • Two per cent on the first $9,500 of taxable income
  • 4.5 per cent on taxable income that is between $9,501 and $18,950
  • Seven per cent on taxable income that is between $18,951 and $37,950
  • 8.5 per cent on taxable income that is $37,951 and above
  • An earned income tax credit is also available.

 

Who Must File -

  • All residents of Maine who have earned an income.
  • All non-residents who have earned an income from Maine.

 

Filing Deadline -

  • Taxes are due and payable on or before the 15th of April. If the 15th happens to fall on a holiday or weekend, then the filing deadline moves to the next business day that follows the 15th. Forms that must be filed include the Form 1040-ME or the 1040S-ME.
  • Maine residents can now file their taxes online. They are also able to go back later and check the status of their refund online.

 

New in The Tax Law For Maine For 2007 -

  • Maine now offers a student loan interest deduction add back.
  • Domicile safe harbor – Certain individuals that spend a significant amount of time outside of Maine would not be treated as a resident for income tax purposes.
  • Qualified Tuition Program – Up to $250 of contributions that are made to qualified state tuition programs may be deducted for each beneficiary of an estate.

 

Blueberry Tax –

Commercial sellers of blueberries, a Maine staple, must keep records of their transactions and pay the state 1.5 cents per pound ($1.50 per 100 pounds) of the fruit sold each season. The The tax law in Maine levies an income tax on all blueberry farmers who sell their products commercially. This tax is calculated per pound of blueberries sold each year. Farmers must keep accurate records of all of their sales and pay 1.5 cents per pound of blueberries sold. Record keeping includes dates of sales, person or business sold to, and number of pounds purchased and sold. November 1 is the reporting deadline for blueberry sales in Maine.

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