MAINE PAYCHECK CALCULATOR
Maine just joined a growing club of states taxing its highest earners more. Governor Janet Mills signed a supplemental budget in spring 2026 that adds a 2% surtax on income above $1 million for single filers, $1.5 million for joint filers, pushing Maine’s top marginal rate from 7.15% up to 9.15%, among the highest in the country. It affects roughly 2,600 Maine taxpayers, but it doesn’t touch anyone earning under that threshold.
For everyone else, a Maine paycheck still gets trimmed the usual way: federal income tax, Social Security, Medicare, and Maine’s regular three-bracket state tax running from 5.8% to 7.15%. There’s no local income tax anywhere in the state. Curious how Maine compares to its neighbors? Check the calculators for New Hampshire, Massachusetts, and Vermont.
Calculate Your Take-Home Pay
Estimate only. Does not include pre-tax deductions like 401(k) or health insurance. The 2% millionaire’s surtax only applies above $1 million (single/HOH) or $1.5 million (MFJ). Consult a tax professional for exact figures.
Every Deduction on a Maine Paycheck
- Federal income tax: Withheld based on your W-4 and the 2026 IRS brackets, which run from 10% to 37% depending on taxable income and filing status.
- Social Security tax: A flat 6.2% on wages up to $184,500 for 2026, capping out at $11,439 for the year.
- Medicare tax: 1.45% on all wages with no cap, plus an extra 0.9% once you cross $200,000 as a single or head of household filer, or $250,000 filing jointly.
- Maine state income tax: 5.8% to 7.15% across three brackets, after subtracting the standard deduction and personal exemption. An additional 2% surtax applies only above $1 million or $1.5 million in income depending on filing status.
- Local income tax: None. Maine doesn’t allow cities or towns to levy their own income tax.
- Pre-tax deductions: 401(k) contributions, HSA contributions, and employer health insurance premiums reduce your taxable wages before any of the above taxes are calculated.
Maine’s New Millionaire’s Tax
Maine’s legislature added a 2% surtax on income over $1 million to a supplemental budget bill in spring 2026, under LD 2212. It wasn’t a sure thing. Governor Janet Mills had opposed a similar proposal the year before, but she reversed course amid a competitive Democratic primary for Maine’s open U.S. Senate seat and ultimately signed the surtax into law as part of the broader budget package.
The mechanics are straightforward. Once a single filer or head of household crosses $1 million in Maine taxable income, or a married couple filing jointly crosses $1.5 million, every dollar above that threshold gets taxed at an additional 2%, on top of the regular 7.15% top bracket. That works out to a combined marginal rate of 9.15%, among the highest state income tax rates in the country. The nonpartisan legislative budget office estimates it affects around 2,600 to 2,630 filers statewide and will raise somewhere between $140 million and $160 million over the next two-year budget cycle.
Maine’s State Income Tax Brackets (2026)
| Rate | Single / MFS | Married Filing Jointly | Head of Household |
|---|---|---|---|
| 5.8% | $0 – $27,400 | $0 – $54,850 | $0 – $41,100 |
| 6.75% | $27,400 – $64,850 | $54,850 – $129,750 | $41,100 – $97,300 |
| 7.15% | Over $64,850 | Over $129,750 | Over $97,300 |
| +2% surtax | Over $1,000,000 | Over $1,500,000 | Over $1,000,000 |
Maine’s regular brackets are indexed to inflation every year, but the new millionaire’s surtax threshold is a flat dollar figure written into this year’s budget bill, meaning it stays fixed unless lawmakers change it in a future session.
Maine vs Nearby States at $70,000 (Single)
| State | State Income Tax Owed | Estimated Net Pay |
|---|---|---|
| Maine | $3,074 | $55,001 |
| Vermont | $2,320 | $55,755 |
| Massachusetts | $3,280 | $54,795 |
| New Hampshire | $0 | $58,075 |
At this income level, well below where the new surtax kicks in, Maine actually lands between Vermont and Massachusetts, not at the bottom of the pack. New Hampshire remains the clear outlier since it has no tax on wages at all, which is exactly why the Maine-versus-New-Hampshire comparison comes up so often for anyone living near that border.
Maine’s Tax Trade-Offs
| Category | Maine | National Average |
|---|---|---|
| State income tax | 5.8% to 7.15% (9.15% over $1M) | ~5.5% |
| Sales tax | Flat 5.5% statewide, no local add-on | ~7.0% combined |
| Effective property tax rate | 0.98% | ~1.0% |
| Estate tax | Yes, $6.8 million exemption | Most states have none |
| Tax Foundation 2026 ranking | 26th overall (up from 31st) | N/A |
Maine’s sales tax is a genuine strength, one of the lowest combined rates in the country and completely uniform since no city or town can add its own. Property taxes tell the opposite story: Maine’s rate sits close to the national average on paper, but the Tax Foundation ranks the state’s overall property tax structure among the least competitive nationally, partly because Maine still levies a state estate tax on top of it, something most states have dropped entirely.
Retirees in Maine
Social Security income is fully exempt from Maine tax no matter how much a retiree receives, which removes one of the biggest worries for anyone living on a fixed income. Maine also offers a pension income deduction for other retirement income, though it’s capped and phases out at higher income levels rather than being unlimited. Where retirees need to pay closer attention is the estate tax: with a $6.8 million exemption, it won’t touch most estates, but it’s still a factor for wealthier households doing long-term planning, especially compared to neighboring New Hampshire, which has no estate tax at all.
Federal Tax Bracket Example: $70,000 Single Filer
Start with $70,000 in gross wages. Subtract the 2026 federal standard deduction of $16,100, leaving $53,900 in taxable income. Here’s how the brackets apply:
- 10% on the first $12,400 = $1,240
- 12% on the next $38,000 (from $12,400 to $50,400) = $4,560
- 22% on the remaining $3,500 (from $50,400 to $53,900) = $770
Total federal tax: $6,570, an effective rate of about 9.4% on gross pay. Layer Maine’s regular state brackets on top of that, and this filer’s combined federal-plus-state tax bill lands in line with much of the Northeast, well before the new millionaire’s surtax would ever come into play.
Frequently Asked Questions
What is Maine’s state income tax rate in 2026?
Three brackets of 5.8%, 6.75%, and 7.15% for most filers. But starting with the 2026 tax year, Maine also added a 2% surtax on income over $1 million for single filers and heads of household, or $1.5 million for joint filers, pushing the effective top rate to 9.15% for high earners.
What is Maine’s new millionaire’s tax?
A 2% surcharge on annual income above $1 million, created by LD 2212 and signed into Maine’s supplemental budget by Governor Janet Mills in spring 2026. It applies starting with the 2026 tax year, affects an estimated 2,600 to 2,630 filers statewide, and is projected to raise roughly $140 to $160 million over the next two years.
What is Maine’s standard deduction for 2026?
$15,300 for single filers and those married filing separately, $30,600 for married filing jointly, and $22,950 for head of household. Maine also allows a personal exemption of $5,300 per taxpayer, and for a spouse when filing jointly.
Is Social Security taxed in Maine?
No. Maine allows a full deduction for Social Security income, so none of it counts toward Maine taxable income regardless of how much you receive.
How high is sales tax in Maine?
A flat 5.5% statewide with no local additions anywhere, among the lower combined sales tax rates in the country. Restaurant meals, hotel stays, and rental cars are taxed at higher rates than everyday retail purchases.
Are Maine’s property taxes high?
Yes, relative to most states. The average effective rate runs close to 1%, and Maine’s property tax structure is considered one of the least competitive in the country by the Tax Foundation, partly because Maine also levies an estate tax on top of it.
Maine’s tax code now runs on two tracks: a fairly ordinary three-bracket system for the vast majority of residents, and a brand-new 9.15% top rate reserved for the roughly 2,600 households crossing seven figures. Whether that split proves durable or gets revisited depends on how the revenue plays out and whether future legislatures decide to adjust the threshold, something worth watching if this affects your planning.