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Maine Personal Income Tax Laws

States collect revenue from a variety of sources, including retail sales tax and/or personal income tax. These funds are used to pay for schools, law enforcement, roads, parks, and other shared community resources.

Maine generally imposes an income tax on all individuals who have Maine-source income. The income tax rates are graduated, with rates ranging from 0% to 7.95% for tax years beginning after December 31, 2012. Maine uses federal income as a basis for calculating state income tax, as do many other states.

State and Federal Taxes

Maine state taxes coexist with federal tax laws. Under basic tax law, both the state and federal government are allowed to tax both unearned and earned income. Earned income includes salary, wages, tips, commissions, bonuses, unemployment benefits, and sick pay.

Unearned income includes interest, dividends, profits from asset sales, business and farm income, rent income, royalties, gambling winnings, and alimony. Federal taxes are handled by the Internal Revenue Service (IRS) and are subject to the Internal Revenue Code (IRC). Many IRS forms and publications are available online.

When Is The Deadline To File?

If you are unable to file your return by April 15, 2015, Maine allows an automatic six (6) month extension of time to file. This extension is only effective if the Maine state return is filed within six months (by October 15, 2015). Requests for additional time to file must be submitted in writing prior to the expiration of the 6-month period. Generally, the total extension period cannot exceed eight (8) months.

Note that an extension to file your Maine tax return is NOT an extension for paying taxes owed. If you owe tax, you must pay at least 90% of that amount by the original due date for filing your return (April 15, 2015 for calendar-year filers) in order to avoid the penalty for late payment of tax.

The highlights of Maine's personal tax laws are listed in the following chart. See FindLaw's Tax Law section for more articles and resources.

Code Section Title 36 §§5111, et seq.
Who is Required to File Every resident: entire taxable income and nonresidents: adjusted gross income, estates, and trusts: entire taxable income.
Rate 6.5-7.95 percent, Corporate top rate 8.93 percent
Federal Income Tax Deductible No
Federal Income Tax Used as Basis Yes

Note: State laws are constantly changing -- contact a Maine tax attorney or conduct your own legal research to verify the state law(s) you are researching.

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