Maine: Who Pays? 7th Edition
Maine
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All figures and charts show 2024 tax law in Maine, presented at 2023 income levels. Senior taxpayers are excluded for reasons detailed in the methodology. Our analysis includes nearly all (99.8 percent) state and local tax revenue collected in Maine.
State and local tax shares of family income
| Top 20% | |||||||
| Income Group | Lowest 20% | Second 20% | Middle 20% | Fourth 20% | Next 15% | Next 4% | Top 1% |
| Income Range | Less than $24,200 | $24,200 to $47,200 | $47,200 to $79,700 | $79,700 to $129,900 | $129,900 to $238,800 | $238,800 to $701,100 | Over $701,100 |
| Average Income in Group | $12,500 | $34,900 | $60,000 | $101,300 | $163,000 | $346,500 | $1,176,600 |
| Sales & Excise Taxes | 6.2% | 4.4% | 4% | 3.2% | 2.5% | 1.7% | 1% |
| General Sales–Individuals | 1.8% | 1.9% | 2% | 1.7% | 1.3% | 0.8% | 0.3% |
| Other Sales & Excise–Ind | 3.3% | 1.5% | 1% | 0.7% | 0.5% | 0.3% | 0.1% |
| Sales & Excise–Business | 1.1% | 1% | 1% | 0.8% | 0.8% | 0.6% | 0.5% |
| Property Taxes | 4.8% | 3.7% | 4.2% | 4% | 3.7% | 3.3% | 2.6% |
| Home, Rent, Car–Individuals | 3.6% | 2.6% | 3% | 3% | 2.7% | 2% | 0.9% |
| Other Property Taxes | 1.2% | 1.1% | 1.1% | 0.9% | 1.1% | 1.3% | 1.6% |
| Income Taxes | -2.6% | 1% | 2.2% | 3.4% | 4.4% | 5% | 5.8% |
| Personal Income Taxes | -2.6% | 0.9% | 2.2% | 3.4% | 4.3% | 4.9% | 5.8% |
| Corporate Income Taxes | 0% | 0% | 0% | 0% | 0% | 0% | 0.1% |
| Other Taxes | 0.2% | 0.2% | 0.2% | 0.2% | 0.2% | 0.1% | 0.1% |
| TOTAL TAXES | 8.6% | 9.3% | 10.6% | 10.7% | 10.8% | 10.1% | 9.5% |
| Individual figures may not sum to totals due to rounding. | |||||||
ITEP Tax Inequality Index
Maine has a hybrid system that is progressive through the bottom part of the income distribution and regressive through the top part. On balance, the overall system tilts slightly progressive according to ITEP’s Tax Inequality Index, which measures the overall effect of each state’s tax system on income inequality. Maine ranks 45th on the Index, meaning that five states and the District of Columbia have more progressive systems. (See Appendix B for state-by-state rankings and the report methodology for additional detail.)
Tax features driving the data in Maine
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Requires combined reporting for the corporate income tax; some foreign tax haven income is partially taxed through GILTI inclusion
Graduated personal income tax structure, though top rate kicks in at $58,050 (single) so a large share of families face top rate
Refundable property tax “circuit breaker” credit (all ages, includes renters)
High standard deduction with phase-out for upper-income taxpayers
Eliminates itemized deductions for upper-income taxpayers
Refundable Earned Income Tax Credit (EITC)
Targeted, refundable sales tax credit
Refundable Child Tax Credit (CTC)
Sales tax base excludes groceries
Levies a state estate tax
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Real estate transfer tax does not include higher rate on high-value sales
Comparatively high reliance on property taxes
Pension deduction without income limits
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