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the tax rate varies according to income -here are the numbers for married, filing joint
if you earn less than $10,150, the tax is 2%.
between $10,150 and $20,150 - the tax is $203 plus 4.5% of excess over $10,150.
from $20,150- $40,350 - tax is $653 plus 7% of excess over $20,150
from $40,350 - tax is $2,067 plus 8.5% of excess over $40,350
be aware that your total income is looked at according to what is filed on your federal income taxes. Even if your spouse does not work in Maine, their income is included for tax purposes.
Wait... they even tax the spouses income if the spouse doesn't work in ME? Or they just use their income for tax rate calculation on the ME workers income?
Wait... they even tax the spouses income if the spouse doesn't work in ME? Or they just use their income for tax rate calculation on the ME workers income?
They don't actually tax the spouse's non Maine income, but you will be taxed at the rate of the combined income of both of you. Example - you make $50K in Maine, spouse makes $50K in NH, Maine taxes you only, but using the income level of $100K for tax rate calculation. Someone please correct me if I'm wrong.
They are bloodsucking leaches. That's why I bought land in NH...
Living in NH and working in ME is the worst thing in term of taxation. You get hit with NH's high property tax (unless you renting and not owning a house) and have to pay ME's high income tax.
If you and your spouse live in NH, but only you work in ME, and your spouse works in NH. Only you have to pay ME income tax. ME can not tax your spouse income from outside of ME since you're not ME residents.
If you and your spouse live in ME, that'd be different. ME will tax you and spouse @ the rate of the combined income even only one source of income is from ME.
it doesn't matter if it's not earned in ME - if one of you worked in ME, you will be hit with the income tax on your total combined income. It's not fair. It's taxation without representation.
MA does it as well, but to a lesser extent. Your income is taken as a percentage and your deductions are reduced by the percentage. It's not as easy as just filing on your income alone.
talk to a tax expert - he will advise you how it works.
I'm not a tax expert and not even a ME resident and never work in ME, just came across this before. ME would happily takes more tax $$$ from you if you use joint return on your income. But I think you don't have to do that if you're are both non residents and only single income source is from ME. Please please, talk to your tax advisor and do not give more of your hard earn $$$. :-).
You can still file as a single individual on ME income even if you both file jointly on federal. Look into the NRH form if this is your case. http://www.maine.gov/revenue/forms/1...eNRH_Guide.pdf and again, talk to your tax expert
Appreciate the responses. The reason I ask is that I am looking to move to the Seacoast area which is really between Mass, and Maine. It seems to me that it is absolutely not worth it to work in Maine if I'm living in NH, especially as a relatively high wage earner. At that point I might as well stay in Ny. It certainly helped me make a decision to look for a job in NH only.
Appreciate the responses. The reason I ask is that I am looking to move to the Seacoast area which is really between Mass, and Maine. It seems to me that it is absolutely not worth it to work in Maine if I'm living in NH, especially as a relatively high wage earner. At that point I might as well stay in Ny. It certainly helped me make a decision to look for a job in NH only.
You've got to do the math if you're considering a job in Maine. If it pays significantly more than something you can get in NH, it might be worth it. You've just got to know how much more salary it takes to offset the income taxes you'll pay. I wouldn't discount a job at the Portsmouth Naval Shipyard (actually in ME) when I retire - it would just have to pay significantly more to make up for the ridiculous ME taxes...
I searched high and low and was unable to find an answer to this question...
I'm a single resident (ie, not married, not divorced, not widowed) of NH contemplating working in Maine.
I know how they calculate income and tax for married couples; one works in ME, one who works in NH.
But cannot find what my personal income tax withholding rate would be based on my status.
I found one document that listed 2010 tax rates but it specifically said:
Do NOT use these tax rate schedules to determine income tax withholding from wages. For Single Individuals and Married Persons Filing Separate Returns
If the taxable income is: The tax is:
Less than $4,950 2.0% of the taxable income
$ 4,950 but less than $9,850 $ 99 plus 4.5% of excess over $ 4,950
$ 9,850 but less than $19,750 $ 320 plus 7.0% of excess over $ 9,850
$19,750 or more $1,013 plus 8.5% of excess over $19,750
Can anyone help? Thanks in advance!
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Single Non-Resident working in Maine
