Maine is adding new tax brackets for residents with higher incomes
Under the new proposal, there are three new brackets for individuals making $144,500 and more that are taxed at progressively higher rates.(Getty Images)
Tax Day is almost here, but there are some changes Mainers should know before filing this year and next.
Because of the multiple, devastating storms this past winter, people living in certain Maine counties will have an extended period of time to file state and federal taxes, according to a news release from the Maine Department of Administrative & Financial Services.
While April 17 is the filing deadline in Maine, counties granted an extension to June 17 include: Androscoggin, Franklin, Kennebec, Oxford, Penobscot, Piscataquis and Somerset.
Those with a new filing deadline of July 15 include: Cumberland, Hancock, Knox, Lincoln, Sagadahoc, Waldo, Washington and York.
The new deadlines pertain to the filing and payments for the individual income tax, corporate income tax, fiduciary income tax (which is for trusts and estates) and the franchise tax.
Taxpayers are encouraged to file electronically, according to the state, but those filing paper returns should write “MAINE FLOODING” across the top of their documents.
Aroostook County residents have not been granted any extensions. Filing deadlines for all other Maine tax types, such as Maine sales tax and income tax withholding, stay the same.
Changes to tax brackets coming 2025
Last week, the Maine Legislature supported a bill with two substantial changes to the state’s tax code.
Starting in 2025, the income threshold will be increased for current tax brackets. The bill also creates three new income brackets with higher tax rates for wealthier residents.
The impact is that most earners will see the same or lower tax rate while those at the top of the pay scale will contribute a greater portion of their income.
Currently, any single individual making more than $58,050 is taxed $3,686 plus 7.15% of excess over that amount. Couples filing jointly making $116,100 or more are taxed $7,371 plus 7.15% of excess over $116,100.
Under the new proposal, there are three new brackets for individuals making $144,500 and more that are taxed at progressively higher rates.
During the House debate, Rep. Meldon Carmichael (R-Greenbush) said he put the bill forward because of a need he saw in his district. He spoke about wanting to specifically help out middle class workers, who he described as a “segment of hardworking Maine families that have been continually left behind economically” because of circumstances out of their control.
Although Gov. Janet Mills said “the state of the state is strong” in her annual address, Carmichael said on the House floor that, “the state of hard working families is not.”
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