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.
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 |
Other Taxes & Obligations
Maine does not currently impose significant additional state-level payroll taxes beyond SIT and SUTA. This keeps payroll relatively streamlined compared to states with multiple layers of tax obligations.
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:
Official reference: [Maine Revenue Services
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