Skip to content

Taxes In Maine

Maine Tax Rates, Collections, and Burdens

How does Maine’s tax code compare? Maine has a graduated individual income tax, with rates ranging from 5.80 percent to 7.15 percent. Maine also has a corporate income tax that ranges from 3.50 percent to 8.93 percent. Maine has a 5.50 percent state sales tax rate and does not levy any local sales taxes. Maine’s tax system ranks 35th overall on our 2023 State Business Tax Climate Index.

Each state’s tax code is a multifaceted system with many moving parts, and Maine is no exception. The first step towards understanding Maine’s tax code is knowing the basics. How does Maine collect tax revenue? Click the tabs below to learn more! You can also explore our state tax maps, which are compiled from our annual publication, Facts & Figures: How Does Your State Compare?

See Related Articles

Tax Data by State

Get facts about taxes in your state and around the U.S.

Explore Data

State Tax Data

Individual Taxes

Top Individual Income Tax Rate
7.15%See Full Study
State Local Individual Income Tax Collections per Capita
$1512Rank: 22
State and Local Tax Burden
11.0%Rank: 39See Full Study

Business Taxes

Top Corporate Income Tax Rate
8.93%See Full Study
State Business Tax Climate Index Ranking
35See Full Study

Sales Taxes

State Sales Tax Rate
5.50%Rank: 29See Full Study
Combined State and Average Local Sales Tax Rate
5.50%Rank: 42See Full Study
State and Local General Sales Tax Collections per Capita
$1223Rank: 25
State Gasoline Tax Rate (cents per gallon)
30.01¢Rank: 28
State Cigarette Tax Rate (dollars per 20-pack)
$2.00Rank: 18

Property Taxes

Property Taxes Paid as a Percentage of Owner-Occupied Housing Value
1.24%Rank: 16
State and Local Property Tax Collections Per Capita
$2862Rank: 5

All Related Articles

Remote work tax reform options to improve state tax mobility and state tax modernization 2022

Eight State Tax Reforms for Mobility and Modernization

States are unprepared for the ongoing shift to remote and flexible work arrangements, or for the industries and activities of today, to say nothing of tomorrow. In some states, moreover, existing tax provisions exacerbate the impact of high inflation and contribute to the supply chain crisis.

40 min read
2021 State Population Change 2021 state migration trends. Where are Americans moving to low-tax states. Which is the fastest growing state What state is losing population the fastest

Americans Moved to Low-Tax States in 2021

The pandemic has accelerated changes in the way we live and work, making it far easier for people to move—and they have. As states work to maintain their competitive advantage, they should pay attention to where people are moving, and try to understand why.

5 min read
2022 State Business Tax Climate Index 2022 State Tax Rankings and 2022 State Business Rankings

2022 State Business Tax Climate Index

While there are many ways to show how much is collected in taxes by state governments, our State Business Tax Climate Index is designed to show how well states structure their tax systems and provides a road map for improvement.

169 min read
Property taxes by county. Explore 2021 county property tax paid map. Which county has the highest property tax rate? Are property taxes by city or county? Who pays the most property taxes in America?

Where Do People Pay the Most in Property Taxes?

The six counties with the highest median property tax payments all have bills exceeding $10,000—Bergen, Essex, and Union Counties in New Jersey, and Nassau, Rockland, and Westchester counties in New York. All six are near New York City, as is the next highest, Passaic County, New Jersey ($9,881).

3 min read
State and local tax deduction benefit by county, compare state and local taxes impact of SALT deduction benefit by county. SALT deduction benefit analysis

Reviewing Benefits of the State and Local Tax Deduction by County in 2018

It is important to understand how the SALT deduction’s benefits have changed since the SALT cap was put into place in 2018 before repealing the cap or making the deduction more generous. Doing so would disproportionately benefit higher earners, making the tax code more regressive.

6 min read
sales tax rates by city, cities with highest sales tax rate, city highest sales tax rate, cities with the highest sales tax

Sales Tax Rates in Major Cities, Midyear 2021

Neither Anchorage, Alaska, nor Portland, Oregon, impose any state or local sales taxes. Honolulu, Hawaii, has a low rate of 4.5 percent and several other major cities, including Milwaukee and Madison, Wisconsin, keep overall rates modest.

13 min read
2022 state tax resource center offers leading 2022 state tax resources and 2022 state tax policy resources

Location Matters 2021: The State Tax Costs of Doing Business

A landmark comparison of corporate tax costs in all 50 states, Location Matters provides a comprehensive calculation of real-world tax burdens, going beyond headline rates to demonstrate how tax codes impact businesses and offering policymakers a road map to improvement.

8 min read