-
Overall Rank
40
Down 7 places since 2026 -
42
Down 1 place since 2026 -
42
Down 16 places since 2026 -
11
Down 2 places since 2026 -
46
Down 2 places since 2026 -
Unemployment Insurance Tax Rank
21
No change since 2026
Maine ranks 40th overall on the 2027 State Tax Competitiveness Index.
Score 4.59 / 10
Notable Changes Maine is singled out in the study for this year's changes.
In the 2027 Index
Maine slid seven places, from 33rd to 40th, with the adoption of a 2 percent “high-income surcharge” that brings the state’s top individual income tax rate to 9.15 percent on incomes over $1 million. The new rate also includes a large marriage penalty and gives Maine the eighth-highest top rate in the country.
Snapshot date: The 2027 Index measures each state's tax law as of July 1, 2026. Changes enacted after that date are not reflected in these ranks.
About Maine's Tax Code
Maine outperforms many of its Northeastern peers but nevertheless performs poorly on the Index, with the property tax and corporate income tax being its least competitive tax types, and its individual income tax rank similarly lagging. In 2026, a new top rate of 9.15 percent was added for income above $1 million (or $1.5 million for joint filers, introducing a marriage penalty). This represents a 2 percentage point increase over the prior top rate and gives Maine the highest top rate in New England.
Maine’s property tax structure is among the least competitive in the nation due to high rates, its levying of both an estate tax and a real estate transfer tax, and its taxation of tangible personal property without a de minimis exemption. However, Maine’s high property taxes come as a trade-off for its lack of local sales taxes, which enables the state to maintain one of the lowest combined sales tax rates in the nation.
Maine includes net CFC tested income (NCTI) in its corporate tax base. Maine’s throwout rule raises the tax burden Maine-based businesses face when they sell tangible property into states with which they do not have nexus. Additionally, Maine’s lack of first-year expensing for C corporations discourages in-state investment, although its conformity to the Section 179 expensing allowance makes its treatment of small business investments more competitive than some of its peers.
Component Scores
#40 overall · 4.59 / 10Each component is scored from 0 to 10, where 10 is best. Select a component for its detail page.
| Component | Rank | Score | |
|---|---|---|---|
| Corporate Taxes | #42 | 4.47 / 10 | |
| Individual Income Taxes | #42 | 4.34 / 10 | |
| Sales Taxes | #11 | 5.46 / 10 | |
| Property Taxes | #46 | 3.50 / 10 | |
| Unemployment Insurance Taxes | #21 | 5.25 / 10 |
Ranking Changes, 2020–2027
#40 in 2027 · down 10 places from 2020Maine ranked 30th in 2020 and ranks 40th in 2027, a decline of 10 places. The axis is zoomed to the state's range. Ranks for 2020 through 2026 are backcast under the current methodology.
Show the Table
| Year | Overall | Corporate | Individual Income | Sales | Property | Unemployment Insurance |
|---|---|---|---|---|---|---|
| 2020 | 30 (4.99) | 40 (4.72) | 21 (5.36) | 10 (5.51) | 43 (3.83) | 27 (5.05) |
| 2021 | 31 (4.96) | 39 (4.71) | 23 (5.26) | 12 (5.39) | 43 (4.04) | 28 (4.99) |
| 2022 | 30 (5.07) | 40 (4.73) | 19 (5.43) | 11 (5.45) | 43 (3.91) | 16 (5.46) |
| 2023 | 32 (4.95) | 41 (4.68) | 20 (5.40) | 9 (5.60) | 48 (3.28) | 22 (5.16) |
| 2024 | 34 (4.98) | 41 (4.67) | 22 (5.34) | 10 (5.63) | 46 (3.41) | 13 (5.45) |
| 2025 | 35 (4.93) | 41 (4.65) | 25 (5.32) | 9 (5.63) | 47 (3.32) | 19 (5.28) |
| 2026 | 33 (5.01) | 41 (4.63) | 26 (5.29) | 9 (5.55) | 44 (3.94) | 21 (5.29) |
| 2027 | 40 (4.59) | 42 (4.47) | 42 (4.34) | 11 (5.46) | 46 (3.50) | 21 (5.25) |
Maine Compared across the States
#40 overallEach row places the states on a 0 to 10 score scale for one measure. Maine is the large outlined dot, and the dashed line is the 50-state median, so a dot to its right scores better than the typical state. Hover over or tab to any dot for detail, and select it to open that state's profile.
Overall
#40 4.59
Corporate Taxes
#42 4.47
Individual Income Taxes
#42 4.34
Sales Taxes
#11 5.46
Property Taxes
#46 3.50
Unemployment Insurance Taxes
#21 5.25
- Maine
- Other states, by rank (1st to 50th)
- 50-state median
Maine and Its Neighbors
#40 overallMaine borders 1 state and ranks 40th overall; that state ranks higher.
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New Hampshire #6 Score 6.11 34 places better -
Maine #40 Score 4.59 This state
What Each Component Includes
The five components of the Index, what each one covers, and where Maine lands. Open any component for the full breakdown.
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Corporate Taxes
Rank #42Includes corporate income taxes and gross receipts taxes. Measures the impact of each state’s principal tax on business activities.
Full Breakdown for Maine → -
Individual Income Taxes
Rank #42Covers the tax individuals pay on income, and with it a significant number of businesses — sole proprietorships, partnerships, and S corporations — that report their income through the individual income tax code.
Full Breakdown for Maine → -
Sales Taxes
Rank #11Covers the general sales tax levied on the purchase price of goods and services, plus excise taxes on gasoline, diesel, tobacco, vapor products, beer, and spirits, and taxes on digital advertising.
Full Breakdown for Maine → -
Property Taxes
Rank #46Includes taxes on real and personal property, net worth, and the transfer of assets — among them capital stock, estate, inheritance, and real estate transfer taxes.
Full Breakdown for Maine → -
Unemployment Insurance Taxes
Rank #21Covers the taxes employers pay into the state unemployment insurance program to finance benefits for workers recently unemployed.
Full Breakdown for Maine →
Tax Data Explorer
Every policy variable behind Maine's 2027 scores, grouped by the report's tables, as of July 1, 2026. Its bordering states are shown alongside to start. Search the variables and values, or add up to 4 states to compare side by side.
150 data points · Shaded values differ from Maine
Corporate Taxes: Corporate Income Tax Rates
| Variable | Maine | New Hampshire |
|---|---|---|
| Bracket 1 | 3.5% > $0 | 7.5% > $0 (differs) |
| Bracket 2 | 7.93% > $350,000 | n.a. (differs) |
| Bracket 3 | 8.33% > $1,050,000 | n.a. (differs) |
| Bracket 4 | 8.93% > $3,500,000 | n.a. (differs) |
| Gross Receipts Tax | No | No |
Corporate Taxes: Tax Credits and Gross Receipts Deductions
| Variable | Maine | New Hampshire |
|---|---|---|
| Job Credits | No | No |
| Research and Development Credits | Yes | Yes |
| Investment Credits | Yes | No (differs) |
| Compensation Expenses Deductible | n.a. | n.a. |
| Cost of Goods Sold Deductible | n.a. | n.a. |
Corporate Taxes: Net Operating Losses
| Variable | Maine | New Hampshire |
|---|---|---|
| Conforms to Federal NOL Treatment | Yes | No (differs) |
| Carryback (Years) | Conforms to federal treatment | 0 (differs) |
| Carryback Cap | Conforms to federal treatment | $0 (differs) |
| Carryforward (Years) | Conforms to federal treatment | 10 (differs) |
| Carryforward Cap | Conforms to federal treatment | $10,000,000 (differs) |
Corporate Taxes: Treatment of Capital Investment
| Variable | Maine | New Hampshire |
|---|---|---|
| Section 168(k) Expensing | 0% | 0% |
| Conforms to Section 163(j) Limitation | Yes | No (differs) |
| GILTI Inclusion | 50% Inclusion | 50% Inclusion |
| Section 174 Expensing | No | No |
| Section 168(n) Expensing | No | No |
Corporate Taxes: Other Corporate Base Variables
| Variable | Maine | New Hampshire |
|---|---|---|
| Federal Income Used as State Tax Base | Yes | Yes |
| Conformity Status | Static (current) | Static (not current) (differs) |
| Allows Federal ACRS or MACRS Depreciation | Yes | Yes |
| Allows Federal Depletion | Yes | Partial (differs) |
| Throwback Rule | Yes | Yes |
| Foreign Tax Deductibility | Yes | No (differs) |
| Corporate AMT | No | Yes (differs) |
| Brackets Indexed for Inflation | No | Flat CIT (differs) |
Individual Income Taxes: Individual Income Tax Rates
| Variable | Maine | New Hampshire |
|---|---|---|
| Bracket 1 | 5.8% > $0 | No Income Tax (differs) |
| Bracket 2 | 6.75% > $27,399 | n.a. (differs) |
| Bracket 3 | 7.15% > $64,849 | n.a. (differs) |
| Bracket 4 | 9.15% > $1,000,001 | n.a. (differs) |
| Standard Deduction (Single Filer) | $15,700 | n.a. (differs) |
| Personal Exemption (Single Filer) | $5,300 | n.a. (differs) |
| Personal Exemption Credit (Single Filer) | n.a. | n.a. |
| Personal Exemption per Dependent | n.a. | n.a. |
| Personal Exemption Credit per Dependent | $305 | n.a. (differs) |
| Average Local Income Tax Rate | None | None |
| Surtaxes on Wage Income | n.a. | n.a. |
Individual Income Taxes: Marriage Penalty, Capital Income, Indexation
| Variable | Maine | New Hampshire |
|---|---|---|
| Marriage Penalty | Yes | n.a. (differs) |
| Married Couples Can File Separately on One Return | No | n.a. (differs) |
| Convenience Rule | No | No |
| Interest Taxed | Yes | n.a. (differs) |
| Dividends Taxed | Yes | n.a. (differs) |
| Capital Gains Taxed | Yes | n.a. (differs) |
| Combined Capital Gains Tax Rate | 9.15% | n.a. (differs) |
| Tax Brackets Indexed for Inflation | Yes | n.a. (differs) |
| Standard Deduction Indexed for Inflation | Yes | n.a. (differs) |
| Personal Exemption Indexed for Inflation | Yes | n.a. (differs) |
| Progressivity Ratio | 1.58 | n.a. (differs) |
Individual Income Taxes: Other Individual Base Variables
| Variable | Maine | New Hampshire |
|---|---|---|
| Federal Income Used as State Tax Base | Yes | n.a. (differs) |
| Conformity Status | Static (not current) | n.a. (differs) |
| Credits for Taxes Paid to Other States | Yes | n.a. (differs) |
| AMT Levied | No | n.a. (differs) |
| Recognition of S Corporation Status | Yes | Yes |
| Section 179 Expensing Limit | $2,560,000 | $500,000 (differs) |
| Tips | Taxable | n.a. (differs) |
| Overtime | Taxable | n.a. (differs) |
| Filing and Withholding Threshold Index | 4 | 10 (differs) |
Individual Income Taxes: Other Individual Income Variables
| Variable | Maine | New Hampshire |
|---|---|---|
| Income Recapture | No | n.a. (differs) |
Sales Taxes: Sales and Excise Tax Rates
| Variable | Maine | New Hampshire |
|---|---|---|
| State Sales Tax Rate | 5.50% | n.a. (differs) |
| Average Local Sales Tax Rate | 0.00% | 0.00% |
| Maximum Local Sales Tax Rate | None | None |
| Gasoline Tax (Cents per Gallon) | 31.45 | 23.75 (differs) |
| Diesel Tax (Cents per Gallon) | 31.96 | 23.75 (differs) |
| Cigarette Tax (Dollars per Pack of 20) | $3.50 | $1.78 (differs) |
| Beer Tax (Dollars per Gallon) | $0.35 | $0.30 (differs) |
| Spirits Tax (Dollars per Gallon) | $11.93 | $0.00 (differs) |
| Vapor Tax Ratio to Cigarette Tax | 196.25% | 30.00% (differs) |
Sales Taxes: Business-to-Business Exemptions
| Variable | Maine | New Hampshire |
|---|---|---|
| Business Inputs | Some Taxable | n.a. (differs) |
| Farm Equipment | Exempt | n.a. (differs) |
| Office Equipment | Taxable | n.a. (differs) |
| Manufacturing Machinery | Exempt | n.a. (differs) |
| Manufacturing Raw Materials | Exempt | n.a. (differs) |
| Business Fuel and Utilities | Exempt | n.a. (differs) |
| Business Leases and Rentals | Taxable | n.a. (differs) |
| Information Services | Exempt | n.a. (differs) |
| Software as a Service (SaaS) | Exempt | n.a. (differs) |
| Platform as a Service (PaaS) | Exempt | n.a. (differs) |
| Digital B2B Products | Taxable | n.a. (differs) |
| Payroll Services | Exempt | n.a. (differs) |
| Data Center Purchases | Taxable | n.a. (differs) |
| Digital Advertising Tax | No | No |
Sales Taxes: Consumer Goods and Services in the Base
| Variable | Maine | New Hampshire |
|---|---|---|
| Groceries | Exempt | n.a. (differs) |
| Clothing | Taxable | n.a. (differs) |
| Prescription Medication | Exempt | n.a. (differs) |
| Nonprescription Medication | Taxable | n.a. (differs) |
| Gasoline | Exempt | n.a. (differs) |
| Landscaping | Exempt | n.a. (differs) |
| Repair Services | Exempt | n.a. (differs) |
| Real Estate Services | Exempt | n.a. (differs) |
| Parking | Exempt | n.a. (differs) |
| Dry Cleaning | Exempt | n.a. (differs) |
| Fitness Services | Exempt | n.a. (differs) |
| Barber Services | Exempt | n.a. (differs) |
| Veterinary Services | Exempt | n.a. (differs) |
| E-Books | Taxable | n.a. (differs) |
| Streaming Video | Taxable | n.a. (differs) |
| Medical Services | Exempt | n.a. (differs) |
| Legal Services | Exempt | n.a. (differs) |
| Financial Services | Exempt | n.a. (differs) |
| Accounting Services | Exempt | n.a. (differs) |
| Sales Tax Holiday | No | n.a. (differs) |
Sales Taxes: Sales Tax Structure
| Variable | Maine | New Hampshire |
|---|---|---|
| Uniform Base Definitions | Yes | n.a. (differs) |
| Unified Tax Administration | Yes | n.a. (differs) |
| Safe Harbor for Remote Sellers | Gross Sales Threshold | n.a. (differs) |
Property Taxes: Property and Capital Stock Tax Rates
| Variable | Maine | New Hampshire |
|---|---|---|
| Property Tax Collections per Capita | $3,069 | $4,066 (differs) |
| Property Tax as a Percentage of Personal Income | 4.46% | 4.89% (differs) |
| Assessment Limit | No | No |
| Levy Limit | No | No |
| Capital Stock Tax Rate | None | None |
| Capital Stock Tax Maximum Payment | n.a. | n.a. |
| Payment Options for Capital Stock and Corporate Income Taxes | n.a. | n.a. |
Property Taxes: Property Tax Bases
| Variable | Maine | New Hampshire |
|---|---|---|
| Tangible Personal Property Tax | Yes | Partial (differs) |
| Tangible Personal Property De Minimis Exemption | None | n.a. (differs) |
| Intangible Property Tax | No | No |
| Inventory Tax | No | No |
| Real Estate Transfer Tax | Yes | Yes |
| Split Roll | No | No |
| Split Roll Ratio | 1.00 | 1.00 |
| Estate Tax | 12% | No (differs) |
| Inheritance Tax | No | No |
| Gift Tax | No | No |
Unemployment Insurance Taxes: UI Tax Rates
| Variable | Maine | New Hampshire |
|---|---|---|
| Minimum Rate | 0.31% | 0.10% (differs) |
| Maximum Rate | 6.60% | 7.50% (differs) |
| Taxable Wage Base | $12,000 | $14,000 (differs) |
| Most Favorable Schedule: Minimum Rate | 0.00% | 0.10% (differs) |
| Most Favorable Schedule: Maximum Rate | 5.40% | 7.00% (differs) |
| Least Favorable Schedule: Minimum Rate | 0.00% | 0.10% (differs) |
| Least Favorable Schedule: Maximum Rate | 5.40% | 8.50% (differs) |
| Employer Contributions as a Share of Total Wages | 0.47% | 0.19% (differs) |
| Employer Contributions as a Share of Taxable Wages | 1.99% | 0.91% (differs) |
| Trust Fund Solvency Ratio | 1.87 | 0.91 (differs) |
| New Employer Rate | 2.23% | 2.70% (differs) |
Unemployment Insurance Taxes: Experience Formulas and Charging Methods
| Variable | Maine | New Hampshire |
|---|---|---|
| Experience Formula Based On | Reserve Ratio | Reserve Ratio |
| Benefits Charged in Proportion to Base-Period Wages | No (most recent or principal employer) | No (most recent or principal employer) |
| Charged If Employee's Benefit Award Is Reversed | No | No |
| Charged for Reimbursements on Combined Wage Claims | Yes | No (differs) |
| Charged If Employee Left Voluntarily | No | No |
| Charged If Employee Was Discharged for Misconduct | No | No |
| Charged If Employee Refused Suitable Work | No | No |
| Charged If Employee Continues to Work Part-Time | No | No |
Unemployment Insurance Taxes: Other UI Base Variables
| Variable | Maine | New Hampshire |
|---|---|---|
| Solvency Tax | No | Yes (differs) |
| Taxes for Socialized Costs or Negative Balance Employers | No | No |
| Loan and Interest Repayment Surtaxes | Yes | No (differs) |
| Reserve Taxes | No | No |
| Surtaxes for UI Administration or Non-UI Purposes | Yes | Yes |
| Temporary Disability Insurance | No | No |
| Voluntary Contributions | No | No |
| Years to Qualify for Experience Rating | 2 | 1 (differs) |
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About the Authors
Janelle Fritts is a Senior Policy Analyst with the Tax Foundation’s Center for State Tax Policy. She is the lead researcher on the annual State Tax Competitiveness Index and serves as a resource to policymakers in their efforts to modernize and improve the structures of their state tax codes. Her work has been cited in The New York Times, the Associated Press, Bloomberg, and numerous state media outlets across the country.
Jared Walczak is a Senior Fellow at the Tax Foundation, where he spent five years as Vice President of State Projects, and president of Walczak Policy Consulting.
Nicole Fox is a Policy Analyst with the Center for State Tax Policy at the Tax Foundation, where she serves as a resource to policymakers in their efforts to modernize and improve the structure of their state tax codes.
Katherine Loughead is the Vice President of State Tax Policy at the Tax Foundation, where she oversees the state tax policy team’s research agenda and serves as a resource to policymakers in their efforts to modernize and improve the structure of their state tax codes.
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