Overview
Maine uses a progressive income tax system with multiple brackets. The state has its own withholding form (Form W-4ME) and uses standard deductions and allowances to determine taxable income for withholding purposes.
What Makes Maine Unique: Maine has a progressive income tax with a top rate of 7.15% and uses Form W-4ME for state withholding. Maine is one of few states that requires a separate state withholding form.
State Income Tax (SIT)
Maine’s progressive income tax features multiple brackets. Employees complete Form W-4ME with their filing status and total allowances. The state uses standard deductions that vary by filing status and personal exemptions to reduce taxable income before applying the graduated rate schedule.
| Tax Structure | Progressive with multiple brackets |
| State Withholding Form | Form W-4ME |
| Filing Statuses | S, M, MH |
| Supplemental Rate | 5% |
Supplemental Wages
Maine supports the following supplemental calculation methods. When using the flat method, the supplemental rate is 5%.
Employer State Unemployment Tax (SUTA)
Your assigned SUTA rate will be based on your company’s experience with unemployment claims. New employers typically start at the default rate of 2.4%.
| Tax Type | Employer-paid only |
| Default New Employer Rate | 2.4% |
| Rate Assignment | Experience-rated; assigned annually by the state |
How to Set Up Maine Payroll Withholding
Follow these steps to begin withholding Maine payroll taxes for your employees:
- Obtain your Federal EIN at irs.gov
- Register with the Maine Revenue Services at maine.gov/revenue
- Register for SUTA with the Maine Department of Labor at maine.gov/labor
- Submit a Netchex tax team request to enable Maine SIT and SUTA
- Have each employee complete their tax forms with an automated onboarding task in Netchex, digitally storing tax forms
- Configure any additional tax settings in the employee profile
Once setup is complete in Netchex, the system will automatically calculate, withhold, and remit all Maine payroll taxes on your behalf.
Maine Payroll Tax Filing Deadlines
The following are general filing and deposit deadlines for Maine payroll taxes. Deadlines may vary based on your employer size and deposit frequency. Always verify current schedules at MaineRevenue Services.
| Tax | Deposit Frequency | Typical Due Date |
| SIT Withholding | Monthly | 15th of the following month |
| SIT Withholding | Quarterly | Last day of month following quarter |
| Annual Reconciliation (W-3ME) | Annual | February 28 |
| SUTA | Quarterly | April 30, July 31, Oct 31, Jan 31 |
Note: Deadlines are subject to change. Always confirm current requirements directly with Maine Revenue Services at https://www.maine.gov/revenue/taxes/withholding.
Resources & Links
The following official resources will help you stay current on Maine payroll tax requirements:
Frequently Asked Questions: Maine Payroll Taxes
What form do Maine employees complete?
Employees complete Maine Form W-4ME, Employee’s Maine Withholding Allowance Certificate.
What is Maine’s top income tax rate?
Maine’s top marginal income tax rate is 7.15%.
What is Maine’s SUTA wage base?
Maine’s SUTA wage base is $12,000 per employee per year. Verify at maine.gov/labor.
Does Maine have local payroll taxes?
No. Maine does not impose local payroll taxes.
What is Maine’s supplemental withholding rate?
Maine uses a flat 5.0% for supplemental wage withholding.
Disclaimer: This content is provided for general informational purposes only and does not constitute legal, tax, or accounting advice. Netchex does not provide tax or legal guidance and makes no representations regarding the accuracy or applicability of this information. Laws and regulations may change. The information on this page reflects payroll tax guidelines as of March 2026. For the most current requirements, please refer to the Resources & Links section above.
Let Netchex Handle the Complexity
Staying compliant with payroll taxes doesn’t have to be stressful. Netchex automatically calculates, withholds, and files your payroll taxes so you can focus on what matters most — your people.
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