Last week, the Tax Foundation released a paper titled, “Reexamining the Tax Exemption of Municipal Bond Interest,” which argued that lawmakers should consider reforming the current tax treatment of municipal bond...
The facts on Maine’s Tax Climate
7.15%individual income taxTop rate
8.93%corporate income taxTop rate
$1907property taxcollections per capita
Maine's Individual Income Tax System
Maine's individual income tax system consists of three brackets with a top rate of 7.15%. The top rate ranks 11th highest among states levying an individual income tax. Maine's state and local tax collections per person were $1,153 in 2013, which ranked 16th highest nationally.
50-State Table of Individual Income Tax Rates
Maine's Corporate Income Tax System
Maine's corporate income tax system consists of four brackets with a top rate of 8.93%. The top rate ranks 7th highest among states levying a corporate income tax. Maine's state and local corporate income tax collections per person were $129 in 2013 which ranked 29th highest nationally.
50-State Table of Corporate Income Tax Rates
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 does not levy additional local sales taxes. Maine's state and local governments collect $807 per person in general sales taxes and $538 per person in excise taxes, for a combined figure of $1,344, which ranks 33rd highest nationally. Maine's gasoline tax stands at 30.01 cents per gallon, 21st highest nationally, while its cigarette tax stands at $2.00, 11th highest nationally.
50-State Table of State and Local Sales Tax Rates
Maine Property Tax Collections Relatively High
Maine's state and local governments collected approximately $1,907 per person in property taxes in 2013, which ranks 11th nationally.
Tax Freedom Day Arrives on April 15th in Maine
Tax Freedom Day is the day when Americans have finally earned enough money to pay off their total tax bill for the year. In 2016, Maine taxpayers have to work until April 15th (16th earliest nationally) to pay their total tax bill.
Maine's State and Local Tax Burden Ranks 13th
Maine's 2016 Business Tax Climate Index Ranks 33
Maine ranks 34th on the Tax Foundation's State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes (45th), individual income taxes (26th), sales taxes (10th), unemployment insurance taxes (41st), and taxes on property (41st), including residential and commercial property.
State Business Tax Climate Index (full study)
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