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Maine Wage and Payroll Tax Facts

January 14, 2025

Having to comply with unique state taxes and wage laws can make processing payroll doubly daunting. Here’s everything you need to know about these rates and laws for the state of Maine.

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The state of Maine imposes substantially higher minimum wage rates than those required by the federal government in the Fair Labor Standards Act (FLSA). Case in point, the overall minimum wage rate is nearly double the FLSA required rate.

Moreover, Portland and Rockland City also have local minimum wage rates that are similarly higher than the federally required rates.  
 
When it comes to processing payroll, Maine-based organizations must handle the following taxes in addition to those required by the federal government:

The below information was last updated January 14, 2025. It is not intended as legal or tax advice.

Maine Minimum Wage Rates

Wage Type

Maine Rates

Federal Rates

Minimum Wage

$14.65

$7.25

Tipped Minimum Wage

$7.33

$2.13

Actual Tip Credit

$7.32

$5.12

Local Minimum Wage Rates

In addition to the state-wide minimum wage rates above, some cities have unique minimum wage rates as well:

Wage Type

Portland and Rockland City Rates

Minimum Wage

$15.50

Tipped Minimum Wage

$7.75

Actual Tip Credit

$7.75

Maine State Income Tax (SIT) Rates

Maine's SIT is progressive, meaning it adjusts based on the income level of the employee paying the tax.

Filing Status Income Tax Bracket
[Over X] - [But not over Y]		 2025 Income Tax Rates
Single $0 - $26,800 5.80% of excess over $0
$26,800 - $63,450 $1,554 + 6.75% of excess over $26,800
$63,450 or greater $4,028 + 7.15% of excess over $63,450
Married $0 - $53,600 5.80% of excess over $0
$53,600 - $126,900 $3,109 + 6.75% of excess over $53,600
$126,900 or greater $8,057 + 7.15% of excess over $126,900

 

Additional Maine SIT Details

Supplemental Withholding Computation

 5.00%

Valid Filing Statuses
  • S = Single
  • M = Married; claiming both
  • MD = Married; withhold at a higher single rate
  • NRS = Nonresident; single
  • NRM = Nonresident; married

Exemptions
  • Any services or individuals not subject to withholding under the Internal Revenue Code
  • Employees exempt from federal withholding
  • Interstate carrier employees
  • Nonresidents who work in Maine for short periods
  • Nonresident aliens and corporations
  • Nonresident spouses of military personnel
  • Retirement income of nonresidents

Form W-4

 Form W-4ME

Reconciliation Frequency

Annual

Maine State Unemployment Insurance (SUI) Rates

SUI provides unemployment benefits to eligible workers who are unemployed through no fault of their own (as determined by state law) and meet the state’s eligibility requirements.

Maine SUI Tax Details

Taxable Wage Base

$12,000

Employee Subject to Tax

No

Rates for Experienced Employers

0.28% – 6.03%

Rates for New Employers*

2.41%

Effective Period

Calendar Year

Voluntary Contributions Allowed

Yes; due 30 days from rate notice mailing date

*This includes the base 2.11% rate, the 0.16% Unemployment Program Administration Fund tax, and the 0.14% Competitive Skills Scholarship Fund tax.

Maine State Disability Insurance (SDI) Rates

SDI benefits are normally funded by employees through mandatory payroll deductions from each paycheck. Maine, however, doesn't require employers to collect an SDI tax.

Miscellaneous Maine Tax Information

Reciprocal Agreement(s)

Reciprocal agreements are when workers who live and work in different states are only required to pay taxes to the state where they live. Maine currently has no reciprocal agreements with any other states.

This doesn’t mean, however, that interstate workers living in Maine pay double. It’s federally illegal for two states to tax the same income. In most cases, the employee’s work state will credit or refund them at tax time based on the taxes they owe their home state. If the tax rates differ, the employee must cover the difference.

Paid Sick Leave (PSL)

The state of Maine doesn’t require employers to collect PSL taxes, but it does have an Earned Paid Leave (EPL) program providing such leave to eligible employees:

Maine PSL Details
Covered Employers Any who employs more than ten covered employees in the usual and regular course of business for more than 120 days in any calendar year

Covered Employees

 All within the state, including full-time, part-time, and per diem employees

Accrual Method(s)

 One hour per 40 hours worked

Annual Accrual Maximum

 40 hours

Carryover Maximum

 40 hours

Probationary Period

 120 days (optional)
Frontloading Allowed Yes

FAQs

 Earned Paid Leave General FAQs

Paid Family and Medical Leave (PFML)

Maine's PFML program is funded via mandatory payroll deductions and employer contributions. Eligible employees will be able to begin submitting claims on May 1, 2026.

Maine PFML Details
Covered Employers

All (regardless of employer size) except for the following:

  • Federal government employers
  • Tribal government employers*
  • Self-employed individuals*

Covered Employees

All full and part-time employees except the following:

  • Earned less than six times the state average weekly wage
  • Incarcerated in a Maine correction institution
  • Covered by the Federal Railroad Unemployment Insurance Act
  • Earning wages under the Federal Work-Study Program while enrolled in a public or private college or university
  • Working in the public sector under a collective bargaining agreement in effect since October 25, 2023 

Amount of Leave

 Up to 12 weeks each for family and medical leave

Leave Use Maximum

 16 weeks in a single year

Tax Rate

Varies based on employer size:

  • 15 or more employees: 1.00% (split evenly between employers and employees)
  • 14 or fewer employees: 0.50% (employee contributions)
Wage Base Limit $176,100

Wage Replacement

90% of income equal to or less than 50% of the state's average weekly wage ($1,444.67).

If an employee's wages exceed 50% of the state's average weekly wage, the program will replace 66% of the wages up to the maximum weekly benefit.

*Such employers can elect coverage, if desired.

Maine Employer Registration

The agencies below can help with your state-based employer registration, including best practices, account numbers, and unemployment information. Contact Revenue Services for withholding tax topics and the Department of Labor for unemployment tax topics.

Registration Details

Revenue Services

Department of Labor

Phone

 (207) 624-5644

(207) 623-7900

Online Registration

 Maine Tax Portal Homepage ReEmployME Employer Registration Page

Registration Form

 Application for Tax Registration ReEmployME Employer Registration Form

Registration Instructions

 Online and paper registration options are available. Account numbers will be issued in 3-5 days via online process or 3-5 weeks via mail.

Employer Self-Service Login

 Maine Tax Portal Homepage

Bureau of Unemployment Insurance Login Page

Additional Maine Payroll Tax Resources

 

This information is provided as a courtesy and may be updated at any time. It is not intended as legal or tax guidance. If you have questions or concerns, we encourage you to seek the advice of a qualified CPA, tax attorney, or advisor.

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