Maine state income tax
Maine has a state income tax. It is graduated, with a top marginal rate of 9.15%. Three regular brackets for tax years beginning in 2026 (annually inflation-indexed): Single/MFS, 5.8% under $27,400; $1,589 + 6.75% of excess over $27,400 up to $64,850; $4,117 + 7.15% of excess over $64,850. Married filing jointly/surviving spouse, 5.8% under $54,850; $3,181 + 6.75% of excess over $54,850 up to $129,750; $8,237 + 7.15% of excess over $129,750; head-of-household thresholds fall between the single and joint amounts. On top of these regular brackets, P.L. 2025, c. 650, Pt. DDDD (L.D. 2212, enacted by Gov. Mills July 29, 2026 as part of the FY2026-27 supplemental budget) imposes a NEW 2% income tax surcharge, effective for tax years beginning on or after January 1, 2026, on Maine taxable income exceeding $1,000,000 (single/HoH), $750,000 (married filing separately), or $1,500,000 (married filing jointly/surviving spouse), also applies to trusts/estates at the single-individual rate. This pushes the true top marginal rate to 9.15% (7.15% + 2%) for income above those thresholds; thresholds are annually inflation-indexed starting with tax years beginning 2027. 36 M.R.S. §§ 5111(7), 5160, 5403(12). Capital gains are taxed as ordinary income (no special lower rate).
Does Maine have a state income tax?
Yes. Maine taxes individual income on a graduated schedule topping out at 9.15%. Three regular brackets for tax years beginning in 2026 (annually inflation-indexed): Single/MFS, 5.8% under $27,400; $1,589 + 6.75% of excess over $27,400 up to $64,850; $4,117 + 7.15% of excess over $64,850. Married filing jointly/surviving spouse, 5.8% under $54,850; $3,181 + 6.75% of excess over $54,850 up to $129,750; $8,237 + 7.15% of excess over $129,750; head-of-household thresholds fall between the single and joint amounts. On top of these regular brackets, P.L. 2025, c. 650, Pt. DDDD (L.D. 2212, enacted by Gov. Mills July 29, 2026 as part of the FY2026-27 supplemental budget) imposes a NEW 2% income tax surcharge, effective for tax years beginning on or after January 1, 2026, on Maine taxable income exceeding $1,000,000 (single/HoH), $750,000 (married filing separately), or $1,500,000 (married filing jointly/surviving spouse), also applies to trusts/estates at the single-individual rate. This pushes the true top marginal rate to 9.15% (7.15% + 2%) for income above those thresholds; thresholds are annually inflation-indexed starting with tax years beginning 2027. 36 M.R.S. §§ 5111(7), 5160, 5403(12).
| Item | Maine |
|---|---|
| State income tax | Yes, graduated |
| Top marginal rate | 9.15% |
| Capital gains | Taxed as ordinary income, up to 9.15% |
| State sales tax | 5.5% |
| Avg. property tax rate | 1.1% of home value |
| Estate / inheritance tax | Estate tax (exemption $7,160,000) |
How does Maine tax capital gains?
Maine has no separate, lower rate for capital gains. They are taxed as ordinary income at the same rates as your wages, up to 9.15%, on top of federal capital gains tax. See how capital gains tax works in 2026.
Property tax in Maine
Maine's average effective property-tax rate is about 1.1% of a home's value, but it varies widely by county. See Maine property tax by county for the effective rate and median bill in every county.
What about retirement income in Maine?
Retirement income is taxed differently from wages in many states. For how Maine treats Social Security, pensions, and 401(k)/IRA withdrawals, see Maine retirement taxes.
Sources
- Maine income tax rates and brackets: Maine Department of Revenue / Taxation.
- Maine capital gains treatment: Maine tax authority.
- Maine sales tax: Maine Department of Revenue.