In this second part of the halftime report for Tax Foundation Forum: Making Sense of Profit Shifting, we discuss the key takeaways from the first half of our series on profit shifting (read part I here). In this post, we...
The facts on Maine’s Tax Climate
7.95%individual income taxTop rate
8.93%corporate income taxTop rate
$1789property taxcollections per capita
Maine's Individual Income Tax System
Maine's personal income tax system consists of two brackets and a top rate of 7.95%. That rate ranks 9th highest among states levying an individual income tax. Maine's state and local income tax collections per person were $1086 in 2012 which ranked 16th highest nationally.
50-State Table of Individual Income Tax Rates
50-State Table of State Individual Income Tax Collections
50-State Table of State and Local Individual Income Tax Collections Per Capita
Maine's Corporate Income Tax System
Maine's corporate income tax system consists of four brackets and a top rate of 8.93%. That rate ranks 7th highest among states levying a corporate income tax. Maine's state and local corporate income tax collections per person were $175 in 2012 which ranked 13th highest nationally.
50-State Table of Corporate Income Tax Rates
50-State Table of State and Local Corporate Income Tax Collections Per Capita
50-State Table of State Corporate Income Tax Collections Per Capita
Maine Sales and Excise Taxes
Maine levies a 5.5% general sales or use tax on consumers, which is below the national median of 5.95%. Maine's state and local governments collect $801 per person in general sales taxes and $520 per person in excise taxes, for a combined figure of $1321, which ranks 18th lowest nationally. Maine's gasoline tax stands at 30¢ (18th highest nationally), while its cigarette tax stands at $2 (11th highest nationally.)
50-State Table of State and Local General and Selective Sales Tax Collections Per Capita
Maine Property Tax Collections Relatively High
Maine's state and local governments collected approximately $1789 per person in property taxes in 2012, which ranks 11th highest nationally.
State and local property tax collections per capita by state
Tax Freedom Day Arrives on April 11th in Maine
Tax Freedom Day is the day when Americans finally have earned enough money to pay off their total tax bill for the year. In 2014, Maine taxpayers worked until April 11th (15th earliest nationally) to pay their total tax bill. The Tax Freedom Days of neighboring states are: New Hampshire, April 19th (ranked 17th latest nationally); Massachusetts, April 29th (ranked 5th latest nationally); and Vermont, April 19th (ranked 17th latest nationally).
Maine's State and Local Tax Burden In Line with National Average
Maine's 2011 tax burden of 10.2% ranks 14th highest out of 50 states, and is above the national average of 9.8%. Maine's taxpayers pay $3836 per capita in state and local taxes.
Maine's State-Local Tax Burden, 1977-Present
Other States' State/Local Tax Burdens
Map of U.S. Showing all State's Burdens and Ranks
Historical Chart Comparing All States' State/Local Tax Burdens from 1977 to 2009
Maine's 2015 Business Tax Climate Index Ranks 33
Maine ranks 33rd in the Tax Foundation's State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes, individual income taxes, sales taxes, unemployment insurance taxes, and taxes on property, including residential and commercial property. The ranks of neighboring states are as follows: New Hampshire, 7th, Massachusetts, 24th, and Vermont, 46th.
State Business Tax Climate Index (full study)
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