Maine

The Facts on Maine's Tax Climate

Here are some basic facts on Maine's tax system and how it compares to other states:

Tax Freedom Day Arrives on April 4 in Maine
Tax Freedom Day is the day when Americans finally have earned enough money to pay off their total tax bill for the year. In 2011, Maine taxpayers work until April 4 (ranked 34th highest nationally) to pay their total tax bill, 8 days before Tax Freedom Day for the nation as a whole on April 12. The Tax Freedom Days of neighboring states are: New Hampshire on April 6 (22nd nationally) and Massachusetts on April 14 (10th nationally).
Full study of Tax Freedom Day, nationwide and in each state

Maine's State and Local Tax Burden Above National Average
Maine's 2009 state and local tax burden of 10.1% of income is above the national average of 9.8%. Maine's tax burden has remained relatively constant from 10.1% (23rd nationally) in 1977 to 10.1% (9th nationally) in 2009. Maine taxpayers pay $3,832 per capita in state and local taxes.
Maine's State-Local Tax Burden, 1977-Present
Other States' State/Local Tax Burdens
Map of U.S. Showing all State's Burdens and Ranks
Historical Chart Comparing All States' State/Local Tax Burdens from 1977 to 2009

Maine's 2012 Business Tax Climate Ranks 37th
Maine ranks 37th in the Tax Foundation's State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes; individual income taxes; sales taxes; unemployment insurance taxes; and taxes on property, including residential and commercial property. Neighboring states rank as follows: New Hampshire (6th) and Massachusetts (24th).
50-State Comparison of Business Tax Climates (data only)
2012 State Business Tax Climate Index, Ninth Edition (full study)

Maine's Individual Income Tax System
Maine's personal income tax system consists of two brackets with a top rate of 6.85%, kicking in at an income level of $250,000. Among states levying personal income taxes, Maine's top rate ranks 17th highest nationally. Maine's 2008 state-level individual income tax collections were $1,098 per person, which ranked 14th highest nationally.
50-State Table of Individual Income Tax Rates
50-State Table of State Individual Income Tax Collections
50-State Table of State and Local Individual Income Tax Collections Per Capita

Maine's Corporate Income Tax System
Maine's corporate tax structure consists of four brackets with a top rate of 8.93%, kicking in at an income level of $250,000. Among states levying corporate income taxes, Maine's top rate ranks 7th highest nationally. In 2008, state-level corporate tax collections (excluding local taxes) were $140 per capita and ranked 23rd nationally.
50-State Table of Corporate Income Tax Rates
50-State Table of State and Local Corporate Income Tax Collections Per Capita and Per Household
50-State Table of State Corporate Income Tax Collections Per Capita

Maine Sales and Excise Taxes
Maine levies a 5% general sales or use tax on consumers, below the national median of 5.85%. In 2007 combined state and local general and selective sales tax collections were $1,286 per person, which ranks 30th highest nationally. Maine's gasoline tax stands at 31 cents per gallon and ranks 15th highest nationally. Maine's cigarette tax stands at $2.00 per pack of twenty, which ranks 10th highest nationally. The sales tax was adopted in 1951, the gasoline tax in 1923 and the cigarette tax in 1941.
50-state table of sales, cigarette, gas, beer, wine, and spirits tax rates.
50-State Table of State and Local General and Selective Sales Tax Collections Per Capita

Maine Property Taxes among Nation's Highest
Maine collected $1,651.47 per capita in local property taxes during fiscal year 2006, which is the latest year the Census Bureau published state-by-state property tax collections. As in most states, the amount collected by the state government of Maine was fairly small. In fiscal year 2006, Maine collected $31.36 per capita at the state level. Combined state/local property tax collections totaled $1,682.83 in FY 2006, which ranked 9th nationwide.
State property tax collections per capita by state

Federal Tax Burdens and Expenditures: Maine is a Beneficiary State:
Maine taxpayers receive more federal funding per dollar of federal taxes paid than the average state. Per dollar of federal tax collected in 2005, Maine citizens received approximately $1.41 in the way of federal spending. This ranks the state 13th highest nationally and represents a rise from 1992, when Maine received $1.30 per dollar of taxes in federal spending and ranked 9th highest nationally. Neighboring states and the federal spending received per dollar of federal taxes collected were: New Hampshire ($0.82) and Massachusetts ($0.71).
Comparing the amount of federal taxes sent to Washington with the amount of federal spending coming back to the state

 

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