Business Inventory Tax
Business inventory is exempt.
Corporate Income Tax
First: $25,000 (3,5%)
Next: $50,000 (7.93%)
Next: $5,000 (3.0%)
Next: $175,000 (8.33%)
Over: $250,000 (8.93%)
Alternative minimum tax imposed equal to the amount by which the state minimum tax (27% of adjusted federal tentative minimum tax) exceeds Maine income tax liability, other than withholding tax liability.
Personal Income Tax
Maine’s personal income tax system consists of four brackets with top rate of 8.5% starting at an income level of $16,699.
Personal Property Tax
All real and tangible personal property located in the state of Maine is taxable unless specifically exempted by statute. Maine does not levy an intangible personal property tax. Property taxes vary and are assessed locally, but a statewide program enables businesses to recoup taxes paid on new personal property. Qualified property placed in service after April 1, 1995, is eligible for a full State reimbursement for a maximum of 12 years. Eligible property includes any machinery and equipment used exclusively for business purposes, except office furniture and lighting fixtures.
State Sales and Use Tax
Base Rate: 5%
Machinery Rate: None
An exemption on the sales of machinery and equipment used by the purchaser directly in producing tangible personal property to be sold or leased for final use.
Unemployment Insurance
Maine’s new employers’ rate is 1.73% for 1 year.
