Maine uses three graduated income tax rates in 2026: 5.8% on income up to $27,400 (single) or $54,850 (married filing jointly), 6.75% on income in the middle bracket, and 7.15% on income above $64,850 (single) or $129,750 (married). These thresholds apply to annualized income after withholding allowances and the applicable standard deduction under the percentage method.

No. Maine has no city or local income taxes. Only state and federal income taxes apply to wages earned in Maine, regardless of which city or town you work in.

Maine's PFML program began collecting contributions January 1, 2025, and benefits became available May 1, 2026. For employers with 15 or more employees, the total contribution is 1% of wages — the employee share is up to 0.5%. For employers with fewer than 15 employees, the total is 0.5% — the employee may pay up to 0.5%. This calculator defaults to a 0.5% employee PFML rate, which applies in most cases.

The 2026 Social Security taxable wage base is $184,500. Earnings above this amount are not subject to the 6.2% Social Security tax. Medicare tax at 1.45% applies to all wages with no cap, and an additional 0.9% employee-only surtax applies to wages above $200,000 in a calendar year.

Maine employers use the percentage method from the Maine Revenue Services 2026 Withholding Tables. Your gross pay is annualized for the pay period, then reduced by your withholding allowances ($5,300 each) and the applicable standard deduction. The resulting annualized income is taxed at Maine's graduated rates, then divided by your pay frequency to get the per-period withholding amount. Employers must use Form W-4ME from employees.

Maine's minimum wage is $14.65 per hour as of January 1, 2026. Maine adjusts its minimum wage annually for inflation under state law. Tipped employees have a separate base rate, but total compensation including tips must meet or exceed the standard minimum wage.

Yes. When bonuses or supplemental wages are paid separately from regular wages, Maine allows employers to withhold at a flat 5% supplemental rate per Maine Revenue Services 2026 guidance. If paid in the same paycheck as regular wages, withholding is calculated on the combined total using the standard percentage method.

Pre-tax deductions like 401(k) contributions and employer-sponsored health insurance premiums reduce the amount of income subject to federal and Maine state income tax. However, 401(k) contributions are still subject to FICA taxes. Section 125 plan contributions (such as health insurance through a cafeteria plan) are exempt from both income tax and FICA. This calculator applies pre-tax deductions to reduce income tax withholding but keeps them subject to FICA, which is the correct treatment for standard 401(k) contributions.