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Here are some basic facts on Maine’s tax system and how it compares to other states:
Tax Freedom Day Arrived on May 4th in Maine
Tax Freedom Day is the day when Americans finally have earned enough money to pay off their total tax bill for the year. In 2007, Maine taxpayers had to work until May 4th (ranked 11th highest nationally) to pay their total tax bill, four days after Tax Freedom Day for the nation as a whole on April 30th. The Tax freedom Days of neighboring states were: New Hampshire on April 22nd (33rd nationally) and Massachusetts on May 6th (9th nationally).
Maine's State/Local Tax Burden Second Highest in Nation
During the past three decades Maine has consistently had one of the highest state and local tax burdens. Estimated at 14.0% of income, Maine's state/local tax burden is 2nd highest in the nation, and remains well above the national average of 11.0%. Maine taxpayers pay $5,045 per-capita in state and local taxes, and per capita state income is $36,117.
Maine's 2008 Business Tax Climate Ranks 41st
Maine ranks 41st in the Tax Foundation's State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes; individual income taxes; sales taxes; unemployment insurance taxes; and taxes on property, including residential and commercial property. Neighboring states ranked as follows: New Hampshire (7th) and Massachusetts (34th).
Maine's Individual Income Tax System
Maine's personal income tax system consists of four brackets with top rate of 8.5%, kicking in at an income level of $18,250. Among states levying personal income taxes, Maine's top rate ranks 7th highest nationally. Maine's 2004 individual income tax collections were $882 per person, which ranked 13th highest nationally.
Maine's Corporate Income Tax System
Maine's corporate tax structure consists of four brackets with a top rate of 8.93%, kicking in at an income level of $250,000. Among states levying corporate income taxes, Maine's top rate ranked 10th highest nationally. In 2004, Maine's corporate tax collections reached $85 per capita and ranked 25th nationally.
Maine Levies Sales Tax at National Median; Cigarette and Gasoline Taxes among Highest in the Nation
Maine levies a 5% general sales or use tax on consumers, equal to the National Median. State and local governments combined collect approximately $698 per capita in sales taxes, which ranks 33rd highest nationally. Maine's gasoline tax stands at 26.8 cents per gallon and ranks 11th highest nationally. Maine's cigarette tax stands at $2.00 per pack of twenty, which ranks 4th highest nationally. The sales tax was adopted in 1951, the gasoline tax in 1923 and the cigarette tax in 1941.
Maine Property Taxes among Nation's Highest
Maine collected $2,099,394,000 in combined state/local property taxes during fiscal year 2004, which is the latest year the Census Bureau published state-by-state property tax collections. As in most states, the amount collected by the state government of Maine was fairly small. In fiscal year 2004, Maine collected $45,308,000 at the state level. At the local level, Maine's property tax collections are substantial. They totaled $2,054,086,000 in FY 2004. Overall, Maine's property taxes collected per capita in FY 2004 was $1,596, which ranked 6th nationwide. (Non-resident property tax payments are included in Census data.)
Federal Tax Burdens and Expenditures: Maine is a Beneficiary State:
Maine taxpayers receive more federal funding per dollar of federal taxes paid than the average state. Per dollar of federal tax collected in 2005, Maine citizens received approximately $1.41 in the way of federal spending. This ranks the state 13th highest nationally and represents a rise from 1992, when Maine received $1.30 per dollar of taxes in federal spending and ranked 9th highest nationally. Neighboring states and the federal spending received per dollar of federal taxes collected were: New Hampshire ($0.82) and Massachusetts ($0.71).
Yes this subject has come up several times. Of course each day there are new people entering the forum and taxes are always going to be a concern for most folks.
As an up and coming Self employed/Business owner/property owner/Income Tax paying/ Fuel Consuming Mainer, I am always interested in how much of an impact taxes will have on me.
I think Petertherock's post was informative and well presented. Good job.
Here are some basic facts on Maine’s tax system and how it compares to other states:
Tax Freedom Day Arrived on May 4th in Maine
Tax Freedom Day is the day when Americans finally have earned enough money to pay off their total tax bill for the year. In 2007, Maine taxpayers had to work until May 4th (ranked 11th highest nationally) to pay their total tax bill, four days after Tax Freedom Day for the nation as a whole on April 30th. The Tax freedom Days of neighboring states were: New Hampshire on April 22nd (33rd nationally) and Massachusetts on May 6th (9th nationally).
Maine's State/Local Tax Burden Second Highest in Nation
During the past three decades Maine has consistently had one of the highest state and local tax burdens. Estimated at 14.0% of income, Maine's state/local tax burden is 2nd highest in the nation, and remains well above the national average of 11.0%. Maine taxpayers pay $5,045 per-capita in state and local taxes, and per capita state income is $36,117.
Maine's 2008 Business Tax Climate Ranks 41st
Maine ranks 41st in the Tax Foundation's State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes; individual income taxes; sales taxes; unemployment insurance taxes; and taxes on property, including residential and commercial property. Neighboring states ranked as follows: New Hampshire (7th) and Massachusetts (34th).
Maine's Individual Income Tax System
Maine's personal income tax system consists of four brackets with top rate of 8.5%, kicking in at an income level of $18,250. Among states levying personal income taxes, Maine's top rate ranks 7th highest nationally. Maine's 2004 individual income tax collections were $882 per person, which ranked 13th highest nationally.
Maine's Corporate Income Tax System
Maine's corporate tax structure consists of four brackets with a top rate of 8.93%, kicking in at an income level of $250,000. Among states levying corporate income taxes, Maine's top rate ranked 10th highest nationally. In 2004, Maine's corporate tax collections reached $85 per capita and ranked 25th nationally.
Maine Levies Sales Tax at National Median; Cigarette and Gasoline Taxes among Highest in the Nation
Maine levies a 5% general sales or use tax on consumers, equal to the National Median. State and local governments combined collect approximately $698 per capita in sales taxes, which ranks 33rd highest nationally. Maine's gasoline tax stands at 26.8 cents per gallon and ranks 11th highest nationally. Maine's cigarette tax stands at $2.00 per pack of twenty, which ranks 4th highest nationally. The sales tax was adopted in 1951, the gasoline tax in 1923 and the cigarette tax in 1941.
Maine Property Taxes among Nation's Highest
Maine collected $2,099,394,000 in combined state/local property taxes during fiscal year 2004, which is the latest year the Census Bureau published state-by-state property tax collections. As in most states, the amount collected by the state government of Maine was fairly small. In fiscal year 2004, Maine collected $45,308,000 at the state level. At the local level, Maine's property tax collections are substantial. They totaled $2,054,086,000 in FY 2004. Overall, Maine's property taxes collected per capita in FY 2004 was $1,596, which ranked 6th nationwide. (Non-resident property tax payments are included in Census data.)
Federal Tax Burdens and Expenditures: Maine is a Beneficiary State:
Maine taxpayers receive more federal funding per dollar of federal taxes paid than the average state. Per dollar of federal tax collected in 2005, Maine citizens received approximately $1.41 in the way of federal spending. This ranks the state 13th highest nationally and represents a rise from 1992, when Maine received $1.30 per dollar of taxes in federal spending and ranked 9th highest nationally. Neighboring states and the federal spending received per dollar of federal taxes collected were: New Hampshire ($0.82) and Massachusetts ($0.71).
Peter this is a negative about Maine and you know we don't talk about the negatives in Maine!Anyway I heard on the new's last night they are going to try and pass getting car inspections done every 2 years instead of every year like it is now.Wonder if that passes? Probably not. In Maryland you only have to get your car inspected every three years.
Peter use the SEARCH button on your page to determine previous topics---then resurrect them. As members we're encouraged to do this to eliminate multiple threads on the same topic.
I can understand facts are facts and the people who have chosen to live in Maine have obviously chosen to live with the facts cited above.
Nonetheless, the forum does get its share of "move to Maine" inquiries and it might be the neighborly thing to do to mention this to those who seem to be chasing dreams of panacea.
I have one developing job overture in ME as my reason for hanging about here. This tax structure is clearly a big number in reconciling offers from employers in other states.
Is anyone familiar enough with the state tax code to know if maintaining a residence outside of Maine could allow me to legitimately avoid a personal income tax nexus on the Maine earned wages?
Is anyone familiar enough with the state tax code to know if maintaining a residence outside of Maine could allow me to legitimately avoid a personal income tax nexus on the Maine earned wages?
I'm not a tax expert (if seriously interested you should consult one to get the best information) but unless you live at the other residence for at least 6 months and 1 day out of the year and declare that as your primary residence then you are probably out of luck. Even if it's your primary residence, if you work in Maine it will become more complicated.
Thank you Petertherock. I am leaving NJ because its SO expensive here and I had heard Maine (which is my number one pick) has a high tax rate. It may be the only thing that ends up keeping me from Maine, I love your state guys!
But I cant leave one state I cant afford to be in for another where my pay will be much less as well.
Searching threads now for more info!
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