Maine has progressive income taxes from 5.8% to 7.15%. Portland's remote-work boom has reshaped Maine's economy — but the tax rate is the same whether you're a lobsterman or a tech worker.
Maine uses the federal standard deduction ($16,100 single / $32,200 married) as its base. Three brackets cover most workers in the 6.75%–7.15% range. Maine fully exempts Social Security from state income tax (all income levels) and military pensions. Portland has become one of the most sought-after remote-work destinations in the Northeast — lower cost than Boston while retaining urban amenities and proximity to outdoors. No Maine city levies a local income tax.
| Rate | Single Taxable Income | Married Filing Jointly |
|---|---|---|
| 5.80% | $0 – $24,500 | $0 – $49,050 |
| 6.75% | $24,500 – $58,050 | $49,050 – $116,100 |
| 7.15% | $58,050+ | $116,100+ |
Maine uses the federal standard deduction ($16,100 single / $32,200 married / $24,150 HOH). Social Security income is fully exempt from Maine state tax. Estimates only.
Maine is famous for lobster — and the state's lobster fishing industry is genuinely important to its coastal economy, particularly in Downeast Maine and the Midcoast. But Maine's economy has diversified substantially. Portland (the largest city, with about 70,000 people) has emerged as a food and arts destination that rivals cities three times its size. The Old Port district and Fore Street Restaurant have given Portland a national culinary reputation. Healthcare (MaineHealth, Northern Light Health) is the largest employer sector. Bath Iron Works (General Dynamics subsidiary) builds US Navy destroyers in Bath and employs thousands at above-average wages.
Portland has become one of the hottest remote-work destinations in the Northeast. Workers from Boston (90 miles south on I-95) discovered that Portland offered Boston-quality restaurants, cultural amenities, and a thriving creative economy — at 40–60% lower housing costs. During and after the COVID-19 pandemic, Portland experienced significant in-migration from Massachusetts and New York, driving housing prices up sharply but also energizing the local economy. For workers who can earn Boston or New York salaries while living in Portland, Maine's income tax (6.75%–7.15% on most income) costs less in real dollars than a Boston apartment premium.
Maine has the oldest median age of any US state and has actively sought policies to attract younger workers. Beyond tax rates, Maine's quality of life metrics — outdoor access (hiking, skiing at Sunday River and Sugarloaf, sailing the coast), low crime, strong public schools in many communities, and a manageable pace of life — are significant draws. Bangor (gateway to the Maine wilderness), Lewiston-Auburn (manufacturing hub in transition), and Augusta (state capital) round out the major population centers.
Estimates only. Maine uses federal taxable income base; brackets 5.8%–7.15%. Social Security separately exempt. Consult Maine Revenue Services for exact withholding.
| Gross Pay (this check) | $0.00 |
| Federal Income Tax | −$0.00 |
| Maine State Tax (5.8%–7.15%) | −$0.00 |
| Social Security (6.2%) | −$0.00 |
| Medicare (1.45%) | −$0.00 |
| Net Take-Home Pay | $0.00 |
Maine has three progressive tax brackets: 5.8% on income up to $24,500 (single), 6.75% on $24,500–$58,050, and 7.15% on income above $58,050. On a $75,000 salary, most of your income falls in the 6.75%–7.15% brackets. Maine uses the federal standard deduction as its base ($16,100 for single filers), so taxable income is the same base as your federal return. Maine income tax on $75,000 (single) is approximately $3,200–$3,600 per year.
No. Maine fully exempts Social Security benefits from state income tax, regardless of your total income level. This is a significant benefit for Maine retirees — many states (including Vermont and Connecticut) do tax Social Security above certain income thresholds, but Maine gives a blanket exemption. Military pensions are also fully exempt from Maine state income tax. Other retirement income (401k, IRA, non-military pensions) is taxed at regular Maine rates.
Portland offers a compelling package for remote workers: a nationally acclaimed restaurant scene, walkable Old Port neighborhood, access to coastal and mountain recreation, proximity to Boston (90 miles on I-95), and housing costs that are 40–60% lower than Boston. The city is small enough to feel manageable but has the cultural density of a much larger city. For remote workers earning Boston or New York salaries, Maine's 7.15% top income tax is more than offset by lower housing costs relative to Massachusetts (5% income tax but dramatically higher rent/home prices).
No. Portland, Bangor, Lewiston, Augusta, and all other Maine municipalities do not levy local income taxes on wages. Maine workers pay only state income tax (5.8%–7.15%) plus federal taxes. There are no city or county surcharges on income.
On $90,000 (single): Maine taxable income = $90,000 − $16,100 = $73,900. Tax: $24,500 × 5.8% = $1,421; ($58,050 − $24,500) × 6.75% = $2,265; ($73,900 − $58,050) × 7.15% = $1,133. Total Maine income tax ≈ $4,819. After also paying federal income tax (~$9,000–$11,000) and FICA (~$6,885), your total annual deductions are approximately $20,700–$22,700, leaving a take-home of roughly $67,000–$69,000.