Income tax withholding
| Imposes wage income tax | Yes |
|---|---|
| Rate structure | Graduated, top marginal rate 7.15% |
| Withholding certificate | W-4ME Maine Employee's Withholding Allowance Certificate |
| Accepts federal Form W-4 | No |
| Convenience-of-the-employer rule | No |
| Nonresident withholding threshold | 12 days or $3,000 CONJUNCTIVE, not disjunctive. Per Maine Rule 803, a nonresident employee is exempt from Maine withholding unless they perform personal services in Maine for MORE THAN 12 days AND earn MORE THAN $3,000 in Maine during the taxable year. Both tests must be exceeded before withholding is required. |
| Local income taxes | No No local personal income or wage taxes. Maine does impose a state Paid Family and Medical Leave employee contribution. |
Reciprocity
States that exempt Maine residents
A Maine resident working in these states files that state's certificate and is taxed only by Maine.
Unemployment insurance and paid leave
| Taxable wage base 2026 | $12,000 2025 base was $12,000. |
|---|---|
| New employer rate | 2.23% Rate range includes the Competitive Skills Scholarship Fund (CSSF) and UPAF assessments as reported to US DOL. |
| Experience rate range | 0% – 6.29% |
| Experience-rating method | reserve ratio |
| Employee UI contribution | No |
| Paid family / medical leave | Yes Maine PFML payroll contributions began January 1, 2025; BENEFITS begin May 1, 2026. Employers with 15 or more employees pay 1.00% of wages and may deduct up to 0.50% from employees; employers with fewer than 15 employees pay 0.50% total and may deduct the full 0.50% from employees. Wages above the Social Security base limit are excluded. |
Employer registration
- Tax agency
- Maine Revenue Services
- UI agency
- Maine Department of Labor, Bureau of Unemployment Compensation
Sources
maine.gov · maine.gov · taxfoundation.org · oui.doleta.gov · oui.doleta.gov · oui.doleta.gov · maine.gov